Forum Replies Created
Ok, Obviously with 147 Reads & Zero Replys, no-one has any advice on a “low level” estimating solution.
So….., That being the case, how are all you Developer Types out there going about crunching the numbers for your developments???
Probably the same as me, now, ….putting it thru a spread sheet???
(I do use Somersoft PIA for straight Cash-Flow Buy/Hold/Rent/(Hope?) deals.)Any Ideas???
GC
If the X’collat is causing you problems, (& it will if you keep hooking more IP’s on) put the screws on your bank to un-X’collat them. We “un-ravelled” 4 properties a couple of years ago an split the loans into Fixed/Variable components, before adding more properties, as it was becoming a nightmare of tangled loans. ….and looking like getting worse but it served it’s purpose well to get things going.
To do it, it didn’t require a full “re-financing” as such (althought it probably was a “non-fees refinance”) but some new documents were drawn up by the Financial Institution (one of the major non-bank lenders).
I talked it thru with my “Lending Manager” who I’d built up a good rapport with and they came up with a plan to switch two property’s as collateral against 2 loans (doesn’t affect deductibility as that depends on original purpose of the loan).
Don’t recall the exact details without digging out the paperwork but it was well thought out by my L/Manager, I ran it past my accountant & at the end of the day all properties stood alone (although 1 did end up with a small, seperate $50 loan tied back to PPOR)
It only cost me about $1,800 – $2000 I recall (That was deductible anyway as done for investment purposes) but now everything is straight sailing.
You’ll need to look hard for +’CF at present and will probably have to “create it” rather than buy it at present but the market will move back over time.
GC
Thanks for the responses so far everyone…
– I agree that putting the +’ve CF into paying off the Home mortgage is the way to go. Been doing that but its a bit too slow of a solution now. I want to settle it out, then re-invest.
– Trusts – yes I had a cursory look at these with my accountant but have a significant salary that’s in need of some tax off-setting so I need to keep investments I my own name, …generally speaking.
– LifeX’s response has convinced me (more so) that selling off one of my IP’s is probably the best move I can make to advance forward from here.
I admit I had to re-read it a couple of times but I substituted my numbers and it comes out at an equivalent Net Worth reduction of about $26k with a saving of around $505 pm (assuming my next investment IS about $300k as you used & probably will be, approx) I think my numbers came out so good due to a huge CG I’ve had on the property I’m proposing selling down.This is another angle to look at it from and further validates my decision.
I use Somerset PIA software to evaluate my propoerty decisions, so work things over fairly well (PS.Steve’s new software looks v/interesting too …. Free plugs!!!)Any more bright ideas??? As I said originally I probably want the impossible – ie. Pay out my Home loan but keep my +’ve CF IP too. Life’s a bitch…
GC
Well that posted up a bit dodgy as I pasted it in from another doc. I think you can still read it – looked OK in Preview. Very Important Issue.
GC
Well you’re a helpful lot…..
The various Investor & Housing groups have got the State Govt shaken up a bit on the new Land Tax & Stamp Duty on Sales, issue.
Just thought I might throw a “snake in the hen house” and make the renters aware that “Dodgy Bob” & his bungling mates will be raising their rents substantially over and above what would have otherwise been the norm (by probably $10 to $50 pw over the next 12-18mths, depending on land value) due to his money grabbing legislation.
About 35% of the population rent, I’d estimate probably 70% of general rental properties would be “Mum & Dad” investors who probably previously didn’t pay Land Tax.
What happens when the cost of oil goes up?? The motorist pays. What happens when the cost of anything goes up?? The end consumer pays.
It isn’t going to be different in this senario. The Renters will get it in the neck as rents will rise significantly because of it.You might like to e-mail & agitate (Inform) a few renters and word might spread and get back to the Government from the other side of the fence.
There’s a big renter/voter market out there that could also lean on the government.
This isn’t meant to be a political comment.
It just happens to be a NSW Labor Govt that’s screwing the general population and NSW in general from what I can see of late.javascript:insertsmilie(‘[grrr]’)
Grrr [grrr]We don’t need these clowns interfering in the property market. You’re probably all aware of what Federal Labor attempted in the mid 80’s and had to reverse due to public outcry (Screwed their own voters then, also, by creating a housing shortage)
P.S. I’ve got an even better one that I’ll post later over the weekend on the NSW Govts changes to OH&S. It looks innocuous but it’s being toted as the most “Evil” peice of legislation that any Western World Govt has come up with lately. And again, it captures virtually every voter in NSW. Landlords & Property Developers will be totally exposed. Some of you may be aware of it but most aren’t and dosen’t seem to be in the Forum.
Cheers GC
GC
