Forum Replies Created
I have been on this presentation (I think) in Melbourne couple of weeks ago. For me it was a good current market overview, a backet of motivation and plenty of tapes/books to buy like on any other seminar of this type. Personally, did not get much out of it.
Thank you Richard and Terry for couching.
I did not need LOC as I was ahead of paying my home loan. I followed one of the basic rules to eliminate the non tax deductable loan first. When I finally paid it off, I have asked for LOC on one of my IP loans as I did not want to wait until I save enough for a deposit. The plan is to use LOC only as a deposit for my next IP (when I find one).
I actually have 100%Offset Account to park my wages these.
Retrospectivelly, I should have left my home loan open with a few hundred dollars left on it and have the extra cash available for other IPs. Then I would not need to set up LOC. What is the downside of having LOC on IP loan Richard, could you please explain?
Thanks Terry,
I have acctually set up LOC on my last IP when I payed off my home loan with purpose to use it as a deposit for the next IP. So, if I go to the bank for the next loan they should let me buy it without x-ing it with other IP properties. Is that right?I will start undoing all the collateral bundle and try to free the IPs up.
I guess it will cost me. Any idea what big banks charge for releasing of security.Richard,
If I read it correctly the unit holder would be the high income member of the trust and he/she could distribute some or all income to the lower income earner to minimise the income tax and maximise negative gearing. ?Hi sanjivgupta,
The house is 51 years old, I have just increased the rent from $190 to $200 per week. I have not renovated it yet. I still have there the first tenant so I keep them until they decide to move on. I think I can get another $10-20 per week with a simple painting and cleaning up job.Looks like subdivisions are in fashion close by (Dandenong Road East). Within the last three months, the Council sent me two notifications of proposed developments in the area. I got a bit worry about the statement made earlier that suitable sections for subdivision in Frankston are close to 700m2. My section is only 614m2 and it was advertised as potential S.T.C.A . That’s why I bought it. But …by now I am used to bold advertising by real estate agents. Did anybody subdivided this size section in Frankstion?.[medieval]
Thanks Terry,
What the LOC stands for if you don’t mind asking?. My LVR is more than 80%.I must have missed the lesson about crosscorateral. I have my own house (just recently paid off ) X -ed with my 3 IP. How do you go about undoing this mess with no blood spilt. !!!!!!
I bought a property in Central Frankston for $220K in Sep 2004. It has not appreciated much yet but I am waiting for the next cycle to do the job. I think Central offers a good value considering location. My lesson from this old property is – get the property inspected by Archicentre or Builder before you sign the contract. The inspection found asbestos in roof. Knowing that I could negotiate the price down. It is OK for now but will cost me more when I try to develop the property (removal costs). I was told asbestos has been used extensively in Frankston at that time. [medieval]
Thanks Michael,
I will double check the minimum land size for the area. I must admit my bigger worry is demographics in the area. I have purchased a property in Heidelberg West in 2005 and had problems with tenants since. Even when managed by a large local Real Estate agency. Would you consider these areas a higher risk to a novice investor like myself.Regarding Dear Park – Thank you for the tip but I am trying to stick to my rule of no further than 15 km from CBD
[medieval]
