Thanks for clarificatin Cattleya.You were very wise to organise the money in advance and have it sitting in your account while you looked for something to buy.Our situation is different – our 'timing and planning' has been lacking! We've already signed a contract – cooling off period is delayed so we have a bit of time (not much) up our…[Read more]

That was an interesting timeframe analysis.Can anyone do the same for Adelaide?

That's a great transformation. Those floors have come up a treat.cheers,Carlin

Hi Cattleya,thanks for sharing your experience.with your personal loan from Citibank for the deposit, I'm assuming you weren't able to claim tax deductions for the interest you paid?If that's the case, then why didn't you take out an interest-only investment loan?By the way, the API edition that explained this loan structure was Feb/Mar 2004 (p64…[Read more]

Great to hear from you again Mel.When you get a chance, would love to see some photos – but no rush, cos I know you're working hard.all best,Carlin

 Thanks for the responses.WJ Hooker – what I'm proposing is not uncommon and is something that's recommended by loan experts (there was a whole API article advocating this approach). We're not just looking at it to avoid LMI but also to avoid further cross-sec –  we've allowed current lender to tie us up in knots.We are in a position to easily b…[Read more]

Hemingway's one of my favourite authors – thanks for that timely quote. I, too, think the climb back up will be swift – but mine's just a gut feeling.

Daniel – the advice you got is the same I got from two accountants a couple of years ago.Terry – Why would you want to give money away to family members beyond your children, just to save tax? I certainly don't want to be supporting "non-working cousins". Can't see how that's using property investing as a means to the good life (holidays et al).…[Read more]

In the time I've been involved with IPs (since 97) the best fixed 10 year rate I've seen was 6.99% (not sure what the comparison rate was). Has it ever gone lower?

I'm confused…again!Terry – You say we could reduced CGT on sale of IPs by having them in a trust. But couldn't the same be achieved by super?ie: If I sell an IP that's held in my name just before I turn 60, and then put that money into my super fund (and pay 15% tax), can't I then withdraw it after turning 60 and pay 0% tax?If that's not how it…[Read more]

In answer to Terry – we would sell some properties to pay off the others so that we had unencumbered properties delivering rental income in our retirement. Once retired we won't be able to afford all the mortgages.We already have a super fund to put that money into, so why bother setting up a trust?Yes, the rules to super could change again,…[Read more]

 Trusts have always confused me, even since I first enquired about them on this forum ages ago. Conflicting advice from forumites and accountants = our IPs to date (just 3) have been bought in single or joint names.One of the many things I don't get is – if you are a buy-and-hold investor who plans to sell some properties just before turning 60…[Read more]

Fixed at 5.99% for three years – sounds ok, but what about the comparison rate. That's what really counts here, isn't it??? In many case the difference between the advertised rate and the comparison rate (usually in very small print, if it appears at all) can be quite substantial.That's why I like Members Equity – their rates and the comparison…[Read more]

Take it easier bzmum. From the workload you're describing I'm worried you're going to run yourself down.Thanks for sharing your journey.Carlin

Anyone who thinks the FHB grants will ward off house price drops longterm should read page 27 of The Australian's "Inquirer" section. It makes it very clear why Australians are just next in line behind the US and UK. Put simply, too many of us are hocked to the hilt, unemployment is rising and – despite what those with vested interests in talking…[Read more]

Scamp, you unfortunately fell into that ol' trap of oversaturation in your attempts to scare people off property. It's a fine line, and maybe it's a cultural thing that you just don't get, but you've passed that tipping point of credibility by going on and on and on with the same verbal dribble. It really worn thin with most of us.And, no, I'm…[Read more]

Have to agree with Badgers. Australians are currently paying more for their mortgages (as a percentage of their incomes) than resident of ANY other country. Blind Freddie could see that it's not sustainable.This is just the thin edge of the wedge. An architect friend of mine told me he knows of many major developments now not going ahead due to…[Read more]

Found that last post quite inspiring. But with three young kids, I'm afraid to take risks. Still, we've managed to get 3 IPs and doing OK. Lucky to have got in when we did.Meanwhile there are so many RE promoters continuing to ride the boom wave long after the boom has ended…..but I wonder if the numbers attending those seminars and buying those…[Read more]

Thanks for those suggestions. With the terrazzo tiles, does the grind and polish mean there are no grout lines identifying them as tiles, and instead it looks like one flat terrazzo surface?If so, then that sounds like the go.

Unfortunately mags like "Your Investment Property" are not independant commentators on the market and where it's headed. Like real estate agents, they will always be the ones talking the market up. Bank commentators are also not independant – falling numbers of people taking out loans means they, too, are under pressure to encourage investors back…[Read more]