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  • Profile photo of clonesclones
    Participant
    @clones
    Join Date: 2005
    Post Count: 81
    October 10, 2005 - 8:34 am
    Originally posted by Dazzling:
    Maybe – just maybe, some, not all, are little 22 yr old journo’s on 35K p.a. with no property experience at all.

    Funny you mentioned that, isn’t 35K p.a. and 22 years old the average salary and age of the real estate agents and mortgage broker?

    Clones

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    October 10, 2005 - 6:03 am
    Originally posted by Mortgage Hunter:

    What advice is that Clones?

    Simon Macks
    Residential and Commercial Finance Broker
    ***NODOC @ 7.15% to 70% LVR***
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    I’ll put it more clearer just for you.

    Investors are finally seeing that the sector has already had its best days, you can expect this overall downtrend to continue.

    Clones

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    October 10, 2005 - 5:45 am
    Originally posted by Dazzling:

    Seeing as though you’ve put this article in the Help needed section, what help exactly are you seeking ??

    Yes, you are right, I do not need help, I am giving some advice to anyone.

    Clones

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    October 6, 2005 - 1:03 am

    There are much better investment options out there at the moment.

    Profile photo of clonesclones
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    October 5, 2005 - 1:07 pm

    I think the clowns are others.

    Have Mortgage Hunter and Dazzling ever stopped talking the property market up without any real fact. Any comment in this forum about something wrong with the IP market is just wrong and based on their comments all the market is rose colour.

    Keep believing it mate.

    Clones

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    October 2, 2005 - 12:45 am
    Originally posted by Mortgage Hunter:

    Do either.

    You wont lose your FHOG unless you move into an IP.

    Whomever has advised you doesn’t understand it.

    You can buy an IP post Jul 2000 and retain the FHOG. As long as you never make it your home by moving in you can still have the FHOG when you do buy a home.

    Cheers,

    Cheers,

    Simon Macks
    Residential and Commercial Finance Broker

    Simon,

    I do not think that is correct this is what the act says:

    “An applicant for a first home owner grant must occupy the home to which the application relates as the applicant’s principal place of residence
    for a continuous period of at least 6 months.”

    So you have to ocuppy the home as a PPOR. Therefore, you have to move in or you are misleading the commisioner and can get in big trouble.

    Clones

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    September 26, 2005 - 9:56 am
    Originally posted by Mortgage Hunter:

    Sounds like a gross generalisation to me.

    I am pretty much sure it sounds like that to you ;) Mortgage Hunter

    Profile photo of clonesclones
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    September 22, 2005 - 4:17 am
    Originally posted by C2:

    Hi Clones, why sell. A current IP would already have a lease in place so the drop in rents wouldn’t matter. I really can’t see tenants wanting to break their lease and have hassles with moving for a 5-10% drop in rent.

    C2

    Hi C2,

    What you mean a current IP? Don’t the tenants change overtime and you need to find new ones?
    I am not suggesting tenants breaking their lease for 5% or 10% that is nosense, what this article says is that a tenant is going to bargain the price when renting much more, if they find a place across the road in the same condition and 5% or 10% less rent, well my friend I think you can figure out where they are moving to!.

    This is another from of going from CF+ to CF-.

    Clones

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    September 16, 2005 - 5:49 am

    It just came to my mind another ritual:

    Mentor Programs for money.

    [blink]

    Profile photo of clonesclones
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    September 13, 2005 - 2:41 am

    Hi voigtstr,

    I agree with you, as I said I am an invertor myself.

    The problem here is that people want to get into the property investment without any knowledge and common sense about currect situation and that is a dangerous business.

    Clones

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    September 12, 2005 - 11:36 am

    Hi George,

    That is good mate. I completely agree with you, if the market is overprice and people are willing to buy, start selling!!!.

    Property is not only about buying and holding, it is about buying and selling when you can get a good profit, otherwise hold.

    Clones

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    September 8, 2005 - 3:17 am

    Hi Van Demon,

    I guess we need more explanation.

    OK – Land Value 450K (owned)
    OK – House Construction Cost 750K (to be borrowed)

    OK – Rent Gross ($800 /wk) = $41.6K

    Costs:
    Interest (8%) = 60K p/a
    How many years are you going to get the loan for?
    If it is 30y = 66,048 p/a

    OK – Agent Commission (8%) = 3300
    OK – Rates = $1500
    OK – Insurance = $800
    OK – Pool Maintenance = $1500
    I guess OK – Depreciation Year 1 = $24K (Ballpark – am I way off here?)
    OK – Bank Fees / Sundries = $1200

    Any Land TAX?

    Total Costs = 98K
    Income less Costs = 56748K LOSS

    Can you recalculate this again with the new values:

    Investors Personal Income = 120K / Tax = 40K
    Investors Adj. Personal Income = 70K / Tax = 17.5K
    tf. Tax Adjustment of 22.5K

    Rent 41600
    + Tax Credit 22450
    – Cash Outgoings 68330 (no depreciation included here)
    = total annual cost of $4300 approx or $80 /wk

    Profile photo of clonesclones
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    September 6, 2005 - 6:00 am
    IP1 is CF+ but any extra goes to rates and insurance. Capital gain promises to continue steadily

    Hi Milly

    What do you mean IP1 is CF+ but the extra goes to rates and insurance. if you can’t pay all your expenses your property is CF-, you need to include insurance etc, and not only Mortgage repayments.

    If this correct, you have 2 IP CF- and your PPOR which has a mortgage on it. If I was you, I would sell one IP (the more CF- one) and pay the mortgage from the PPOR.

    Clones

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    September 5, 2005 - 6:00 am

    Hi Meilin08

    Is the grant available on the purchase of a vacant block of land?
    No. The grant is only available for the purchase of an established home, a contract to build, an eligible new home or an owner builder.

    Profile photo of clonesclones
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    September 4, 2005 - 10:25 am
    Originally posted by jah:

    Hi I read Steve’s book over a year ago, and read the electronic stuff all the time. But I haven’t done anything about it .. we still have a mortgage and 2 neg grd properties. Also I have started working for myself (left the corporate world).

    Am scared of positive cash flow – even though I know the rationale behind it. Also am not sure how to approach it – everytime I do the figures on something in Brisbane, it never works out like Steve’s book examples!! That is – favourable!!

    I am not sure why George is selling – I wouldn’t, so I must not have this down pat after all.

    Any one able to give me a big oush in the right direction??

    Alice

    Hi Jah,

    I personally believe that Steve is making more money from selling books and seminars than from the property market ;)

    clones

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    August 22, 2005 - 3:47 am
    Originally posted by lifeX:

    Interesting you must admit, that they still gave listed property shares such a good rap. Maybe property aint that bad, eh?

    cheers.[:D]

    Lifexperience

    That is correct, but also property is not the only investment option out there that can give you a good return in the long run.

    I also believe that shares will performe better than investment property in the next 5 years. Eg. most of the banks are yielding 7% to 8% only in dividends. However, the same time we need to give thanks to those property investors that are paying large repayments every month.

    It is a balance between different options.

    Clones

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    August 22, 2005 - 1:08 am
    Originally posted by lifeX:

    Most people I know who buy and hold property plan to hold for 5-10 years maybe more.

    It is easy to compare shares to property in any single year and note that they are 20% in 2005. Shares are historically more volatile and could go down 20% next year easily.

    But the strategy from many seasoned property investors for buy and hold properties is to buy WHEN you can, as the long term will prevail.

    What were house prices 20 years ago? What do you think property prices might be in 20 years.

    Listen, shares can be a great investment, but you aren’t really giving investment property a fair go comparing over 1 year!

    Live, Learn and Grow

    Lifexperience

    Lifexperience,

    As you said, one year comparison is no fair. So check the next article about investment options and how they compare Listed Property, Shares and investment property.

    http://www.asx.com.au/investor/shares/news/russell_-_asx_investment_report_2004.htm

    Key highlights – Investment returns for 10 years to December 2005:

    For the top marginal tax
    Australian Shares – 9.2% pa
    Listed Property – 10.0% pa
    Residential Investment property – 8.4% pa
    Fixed interest 4.4% pa

    For the lowest marginal tax rate:
    Australian Shares – 11.6% pa
    Listed Property – 12.3% pa
    Residential Investment property – 10.6% pa
    Fixed interest 6.7% pa

    20 years to December 2005:

    Depending on marginal tax brackets:

    Australian shares produced the best returns ranging between 13.5% and 11.6% per annum

    Residential investment property with returns between 11.7% and 10.2% per annum

    Listed property 11.5% and 9.5% per annum.

    Clones

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    August 21, 2005 - 11:30 am
    Originally posted by GPSNetwork:

    Rent & Buy

    Stay renting where you are and buy an investment prop. as this will give you the tax advantage you need to offset your tax paid and starts your investment journey..

    Roy H.
    L.R.E.A., Dip FS (FP)
    Guardian Property Specialists (GPS)
    http://www.gpsnetwork.com.au

    Hi joytony,

    Never ever buy an investment property thinking about tax advantages. Tax advantages mean only one thing, you will loose money.

    WB

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    August 20, 2005 - 8:41 am

    Hi Yasmina,

    I am just running a couple of IP test on properties people buy, just for reference.

    IP = $190,000
    You put $19,000 from your pocket (Assumed)
    Loan = $171,000 for 30 years 6% interest
    Rent received after commision =
    $230p/w x 52weeks= $11,960 – $2500 (costs) = $9460
    Loan Repayments = $1,026/m x 12months = $12312

    Let’s assume you are in the 47% tax bracket.

    As you receive rent, you have to pay tax for it =
    $9460 x 0.47 = $4446.2

    And you have a tax deduction for your repayments=
    $12312 x 0.47 = $5786.64

    Totals = $9460+ $5786.64 – $12312- $4446.2=
    -$1511.56

    Now, QLD are going up 1% or 2% that means = $190000 x 1.01 = $191900 which means $1900 profit and you are paying -$1511.56, so you end up getting $389 per year for $19,000. (2.05% return/year)

    A low return, but it is generating some positive cash flow. Keep an eye on your repayments as you will pay more every month than what you will receive and will only catch up every year with your tax return.

    These are just my thoughts, no recommendation or advice. Do your own calculations.

    WBII

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    August 19, 2005 - 5:15 am

    Hi broughaha,

    Check carefully what you are buying around those kind of towns, Broken Hill has a population decline of 10% in the last 10 years, in 1996 was 21,505 people. By 2001 the population was 20,425 now it is even less and whoever is selling in my opinion is moving out.

    Or are you the one selling?

    Just my thoughts, no recommendation at all.

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