Forum Replies Created
Thanks Terryw
I did not think about that. I think if it is possible then option 3 sounds like the way to go.
Thanks again chris
Thanks guys for the feedback.
I guess i am leaning towards keeping both loans separate but want to not pay LMI so that means option 3.
This is my preferred option only because people say don't join the 2 properties. Is there any real reason to not join the properties? Mortgage brokers i have seen in the past all say there is no reason not to join them as both titles will be in joint names.
If there is no real benefits in keeping them separate then wouldn't the easiest way to get the equity out of the IP be refinance?Thanks again.
Regards
chrisAhh now that makes sense. I should have not been such a nice guy and pushed the tenants out when I purchased the place. Oh well everything is easy in hindsight Thanks heaps.
Thanks for the info.
hmm ok so getting a proper valuation is not worth it then, for CGT purposes anyway.
I guess you meant to say you don't pay CGT for 80%.
Hi
Try the REIV website for info.
Thanks guys for the feedback.
It sounds like i may just have to leave the property the way it is for now.
Hi Snoopy II
I never thought about using an offset account that way before but i think it is a very clever way to set things up.
I have a few friends in a situation where they want to turn their house into an IP but have payed to much of it off to make it worth it. I might look into changing my approach. In the past i have seen an offset account as worthless because you generaly pay more on interest and monthly fees than a basic account which would generaly counter a lot of the offset you get with having some cash in the account.
I guess another benefit of setting it up this way is that you can make the main loan Interest only and if something should happen say you loose your job then your minimum repayments are lower than P&I.I guess the question i should be asking is who is a good valuer in Melbourne?
Hi Ninh
I am in a similar boat to yourself. I have an IP (purchased in 08) and my own place (purchased in 2010).
This is my thinking.1) Your own house is not tax deductable so you should pay it off as soon as possible.
2) Investing is where you will make the real money so you need to get into it as soon as possible.With these 2 thoughts in mind i come to the conclusion that i needed to do both. This is what i am currently trying to do.
I have set up my loan for my PPOR so that i will be paying off the minimum P&I repayments if the interest rate goes up to 8.5% however while the interest rates are lower than this i will be paying off the loan faster. Whatever money i have left i am going to put into my investment properties. As i already have 1 i need to find a place that i can afford with whats left (Which is not much at all). So i have started to do my resurch for a CF+ place or close to.I hope this helps.
Regards
chrisHi Mark
hmm didn't think that the price to value a property would vary that much. I would not imagine that the time and effort to value a 3BR would be more than a 2BR.
I have had a realestate agent in and have looked around at the lastest sales however i was not sure if the realestste agents valuation was worth the paper it was written on.
Who do you use to value your property in Melbourne?
Regards
chrisHmm i didn't think about the visiting part. I guess that means that i can visit my sister (my property) without giving notice (she might not be happy with it) with bothe options (PM or self managed).
I am still leaning towards self managing just because i know my sister will call me direct if the place needs maintanace even if we were with a PM. I will make sure i get a lease in place though, JUST IN CASE.
Thanks guys
Thanks guys for your help this clears it up for me.
Another quick question. How do you clame things such as paint for the house or doing landscaping yourself?
Is all the paint or landscaping products you buy put together as one item and depreciated or can you just deduct each item in the year of purchase?Regards
chrisWhere to look depends on the reason for purchasing the property. If it is for an investment and you are aiming for capital growth then i would stay within 10 Km of the city but if it is to live in then go wherever you want to live.
Hi Dave
Would it be possible to post the links to some of the calculators? I’m sure there would be a lot of people interested, as am i.
Thanks
chrisOriginally posted by Mortgage Hunter:Originally posted by arrowsmith:DLPP,
A) I would lose the 10k first home owners grant
Tragically common misconception.
Suggest you reread the legislation.
There is a link to your State’s requirments on my website.
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
What do you mean by this? Is there a way to by an investment property and still get the FHOG? If so this is very interesting.
Regards
chrisI can’t believe that with the huge number of professional investors on the sight that I only get one reply for a question like this. I am having a lot of trouble doing my research and with thousands of other investors on the sight that are doing their own research no one can give me any direction on a simple topic like this. Is this because there are no good ways of finding this kind of information or are people just un willing to share their information? Sorry to complain but I thought that this is what this sight was for.
Any way Thank you Michael Yardney for your reply, it was a lot of help.
Regards
Cama20
Pipelinebuilder
I am 23 and have similar ambitions to you. I have grown up watching my parents work hard and now are nearing retirement with no where near enough money to do thinks they deserve to do in their retirement.
I think you are right retiring means not having to go to work. I don’t think i will ever stop working but i think when you don’t have to it allows you to enjoy and choose what you do. It means you can work in a lower payed job because you enjoy it and don’t really need the money instead of working in a highly stressful yet well payed job.I have a cousin who is only 24 and is getting very close to retiring and he has done it all through property.
I think it can be done you just have to make your money earned from work harder for you.
Regards
Cama20Thanks for your input!
Ya i was a bit conserned about investing with a friend thats why i put this post. Think you might be right a lot of people seem to run into trouble when investing with a friend.
About the PPOR i was looking at doing what you said however because i have got an extreamly low income and my partner just started work i was a bit concerned that i would not be able to get a loan big enough for a place. That is why i was looking at investing with a friend. Maybe i should go to a broker and see what i would be able to get.
Thanks again.
Does anyone have anything to add about the Geelong question, this is the next concern i have.
Thanks fernfurn
I managed to get a copy of a friend. This is a good start it has the right information just does not show it year by year. Thanks a lot.
I am a young invester at age 22. I developed an interest in investing when i was about 20 when i learnt about one of my friends making $1000 in the stock market.
I then started out like most people have mentioned here, i got an ING account then a Bank West one and then a managed fund. I started reading most of the books mentioned here, the best of which was Rich Dad Poor Dad. I have now been dealing in shares for 12 months and developed about $20,000 worth and am just about to enter into my first property.
I have done all of this while a student on only $25,000 a year and renting.
Dont underestimate financial knowledge i feel that the knowledge of others and that in which you can get from books is all you need to suceed.So i guess that i agree with everyone else that this is the best way to go about investing.
