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If they knew they could ask you to get the loan down to an acceptable level.
But often they wouldn’t know. And they don’t really want to call loans in.Nothing you can take care of really. And the bank can ask anything they like.
As you said, unless you are buying more property or refinancing there wouldn’t be anything to allert them of the fact.
But I’d make an effort to get the loan down.
I used to like the way it showed which threads had been added to since you last looked.
Steve thank you for this great forum. I guess we are creatures of habit and don’t like things to change. But once we get used to a new way we realise that the old way may have not been so great after all.
Hating it. I looked once and have to admit I haven’t bothered in a while.
Font is WAY to small on the title headings.Can you make the spacing smaller so a bigger font will take up the same space?
Terry I don’t know why your quote says I said that. The OP said that.
I’m not up on construction and CGT.
So just checking that I have this right- You AND your brother both own the existing property with a house on it?
You can only claim the exemption on one property at a time so if you move in to the back one and want to claim that you will lose the exemption on the front property.
You can claim CGT exemtion if you live in it or did from day one (then rented it out for less that 6 years).
I’d speak to a propery savvy accountant BEFORE taking on any development. Yopu mjat save yourselves many thousands of dollars by getting the settup correct. Once it is set up incorrectly you cannot fix it.
You may be better splitting ownership then building?? There will also be stamp duty on the changfeover in ownership to consider. It’s great to ask queations on forums but when it comes to your finances it’s best to get proffessional advice.
No, don't be sorry. Everyone started out not knowing anything (contrary to what some people on property forums tell you LOL). We all leant along the way. Asking questions and getting answers is better than not asking and risk making mistakes.
Over the years I have saved myself from making numerous mistakes just by reading property forums.
Keep reading and asking questions. You'll get there.
Yes getting an interest only loan with an offset is the best way to go. Just double check with your bank as some try to give you a loan with redraw. They will tell you it's the same. It is NOT when it comes to investing and redrawing the money.
Get a good property accountant too. That is invaluable.
The Property Puzzle by Stuart Wemyss is a good all round book. But there are many that are good. Go to your local library and borrow a few. Also borrowing a few investment magazines gives you a look at what other people are doing without paying out a fortune for subscriptions.
Happy investing.
Hi, you don't choose whether to set it up as an IP or a PPOR.
If you live in it, it is a PPOR, If you don't then it is likely to be an IP . But you can claim it as a PPOR for 6 years and not pay CGT If you live in it first then rent it out (and don't own another PPOR).
Why do you want to buy to sell then buy again? That's not a very good strategy. You lose buying (stamp duty etc) and lose again when you sell (selling costs etc). The idea is to build a portfolio.
Why not just keep it, withdraw the equity to buy again?
I'd suggest doing a lot more reading on property investing.
If you have seen the agents sign THEN put the letter in the agent may still have a claim. It's about who introduced you to the property.
There have been many court cases where people have changed agents but sold to a person first introduced by the first agent.
The seller needs to read the contract.
I' pretty sure you can't pay yourself for working on your own property (not legally anyway).
Same as I can't pay myself for managing my properties. I can pay someone else though (friend etc).
If she wasn't an owner- different story.
The house is in Mt Druitt (outer west suburb of Sydney).
Yes that's correct. This was $165K. We spend $25K. Then valued at $250K. That was 2 years ago. It would now sell for $300K.
Western Sydney went crazy in 2013.
Most of the others we spent $15K and had an increase of $50K+.
Double post
trevismarcus wrote:I think you buy your own house to live in first.You might but it might not be the best decision for the poster. Financially wise it is often NOT the best option.
Catalyst wrote:Hamish_Q wrote:Hi all,I'm looking to get into the property world and am getting mixed opinions from family friends about buying my own house to live in first or then renting and buying an investment first and I dont really know what is best..? I've always seen rent money as dead money but am hoping i can get some help?
Regards,
Hamish
Hi Hamish. It depends what you mean as best.
Best as in it will be your own place and you can do with it what you want and not have to move.
OR best as in financially best.
As others have said (emotion aside)- do the numbers.
It depends on where you want to live also. In lots of decent areas it is cheaper to rent than buy BUT you want to get into the property game or you get left behind. So you can buy in a cheaper area with good rental yield.
Sometimes it is advantageous to buy something, live in it for a short while then rent it out. You can then take advantage of the 6 year rule and pay no CGT for 6 years).
Lots of things to consider. We don't know your full circumstances so hard to give definitive advice.
Hi. I edited it. I think it came up as my personal login so would allow access. They are the three in order.
We just use the material, vinyl type verticals. Great for rentals. For buy/sell though I'd probably not use verticals. Venetians look more expensive.
Yes vertical blinds. Cheaper than venetians and for rentals if a couple of venetian slats get bent it looks terrible.
Our kitchen supplier makes to measure. I draw it up and send it to them. It takes 6 weeks so I order it as soon as we exchange contracts.
I want to get at least $3 for every $1 if I'm putting labor in. We haven't sold any. We buy, reno, rent. They have all been CF neutral to CF+ from day one with increase in equity from $55-90K.
We did a few partial reno's and 4 full reno's. Plus split a house in 2 with full reno.
Here's the burnt out one. We spent $25K. Increase in equity $90K but it went up another $70K last year. Yeehah!!!
http://www.youtube.com/watch?v=PAibRzU4nUU
http://www.youtube.com/watch?v=y2Vc9Zjc-1k
davemoris wrote:You are absolutely right. I couldn't picture out myself as a millionaire. Naturally, human doesn't have contentment. Even if you were a millionaire, you'd still be finding something that most people(without lots of money) have and you don't. Well, I'm happy with what I have and what I am today. I'm glad to see everyone's opinion about this.And that is all you'll have. If you are happy with the amount of money you have then that's what you'll have. That's why people that win lotto lose it. It's their mindset to be poor.
I wanted to make a million dollars and that's what I got. After reading The Secret of the Millionaire Mind I realised I should have aimed higher. You get what you aim for.
Now I'm aiming even higher (after I get back from travelling around Europe). LOL
Kitchen- We buy from a wholesaler. Price $2,500-$3,000 (the $3,000 one was huge). Install $600. Plumber (friend $150). Oven, hotplate, rangehood, sink, taps etc $$1500. = $5,000
Bathroom. We strip it. Tiles we buy at a wholesaler. They usually have something on sale. Bath, vanity, taps (look on Ebay for baths etc). We have a few shower screens we've bought off Ebay (demolished houses). This saves at least $1,000 Tiler ($2,000). We fit the vanity etc.
So basically the savings come from our labour and sourcing stuff cheaply.
As soon as we find a place my hubby gets on Ebay etc looking for what we need. At other times if something is really cheap he'll buy it for later. We bought a few sinks with flick mixers included for $15 each. They were installed for the olympics so only used for a few months. Don't get me wrong, we are not buying cheap stuff but just getting it cheaper.
We did a burnt out for $25K but we paid someone to paint the outside and spray the roof.
Not sure of costs in WA but your bathroom and kitchen is a bit expensive. Also we get a house of all verticals for $1000 (not including bath or laundry). Look around for small companies.
Look for wholesalers. Big kitchen mobs import their own but smaller kitchen mobs use wholesalers. If you can find one go direct. They often don't have websites. Drive around some industrial areas where there are small factories. That will be your biggest saver.
Also find a good tiler (again, not a big company).
Good luck.
We typically strip out the kitchen and bathroom and replace both. We do the flooring (sometimes carpet, sometimes polished floorboards).
We paint throughout We pay an electrician and plumber and a carpenter for a few days. We also pay a tiler to waterproof and tile the bathroom. We do the rest ourselves.
Typically 5 weeks start to finish.
Do you want easy or accurate?
Easy- Look at rental yield. It needs to be at least 1% higher than the interest rate (very rough).
I like to work on real figures.
Costs out- interest, land and water rates, management fees, strata (if applicable)
Costs in – rent. You can also add depreciation)
See if it puts money in your pocket or takes it out. Quite quick to work out really. Of course it doesn't take into account maintenance etc.
There are a few spreadsheets floating around that you can just put the figures in and it works it out for you.
I did that with my kids money. Put it in my mortgage and paid them the same interest.
I kept a book and they could see it growing. When they got older and wanted it I just gave it to them.
I refinanced my 28sq unit with CBA 80% lend (not crossed but I did have another property with them). They revalued it first (up). It previously had no mortgage.
