cheers ill have to look into the break costs of the loan. I think say if interest rates rise by a 1% this time next year, i think even if only slightly negatively geared i wont mind as much if the capital appreciation goes up. Maybe ill wait for another 3 years, so fix the loan again next year for about 2-3 more years then sell at the end of that period.

Hi thanks for the reply,
Ive been renting the cottage home for about 1.5 years, and currently ive fixed the interest rate until june 2015… Ive recently increased the rent by 20$ a week after putting in two air conditioners.
At the moment im renting a place in the cbd of perth, and i really like it there so have no plans to move. My job is very…[Read more]

Hi thanks for that info it certainly helped. There is a sunset clause but as I signed the contracts back in April I forget off the top of my head, I'll have to go back over the contract, but it is about 2-3 years from memory.

thx for the reply,

yes it seems now that i have signed the contract, they have my money and can do what they want.
Hence my inclination to call up and act as a buyer, and then fish out some information on the progress.

I called up the bank whom my loan was with and they said I needed to pay off my loans if I decide to sell my property basically because that was the security that the loans used. 

Thanks for your reply.
I assume that i am in option 2. 
I have one investment property and am currently building another property as my home of residence. I used the equity in my investment property for my deposit for the property i am currently building. 
So if i sold my investment property, can i use any capital gains however i like? Or do i…[Read more]

According to my broker he said some lenders wont do an interest only loan if the loan is quite high (mine is 372K$). He said pay some of the priniciple off it first and then in time I can switch back over to interest only. 

At some point ill buy a home for me to live in, maybe when i get a family, which wont be for some time! The property im…[Read more]

Yes this is an investment purchase. I have no other debt other than my other investment property. No credit cards, no car loans, nothing. Im currently renting.

Yes my broker thinks the loan should go through. He said paying principal and interest initially until the loan goes down, and then later i can fix the rate. 

Cheers for your responses,
I will double check with my broker the reasons, the loan application hasnt gone through yet.
So if a loan gets disapproved then this goes against your credit rating? I wasnt aware of this.

cheers

well i dont know who to believe anymore.
negatively geared people say its a good idea, positively geared people say its a bad idea.

Assuming that i would take out a personal loan, then these interest rates are usually about 10-13%, which is higher than my mortgage (About 5.4%).
The reason I would pre pay is to lower my taxable income because my property is negatively geared.

Can I claim the interest and loan fees as a tax deduction?

can you claim this on insurance?
i know my insurace company doesnt charge me an excess for rent in arrears

M.Investigator wrote:
Personally I'm on the positive geared camp, like Steve McKnight. I also advocate reading his book. It's a good philosophy.

I don't like losing money and negative geared is more risky in my opinion because you're hoping that appreciation will occur and will make you money some time later down the track. I like the passive…[Read more]

streamlineinvesting wrote:
I have a feeling that you are almost hoping a property is negatively geared? Even if the property is positively geared, you can still claim all of the expenses you have? And you will still have to declare your rent on your tax return anyway? I mean sure you may pay more tax with a positively geared property, but you…[Read more]

Cheers for that,

In that case its definately negatively geared. Already paid $2k in rates, and property management fees for just the first month are about $1k due to the leasing fee and the property getting cleaned. Plus other ongiong costs in the next 10 months should definately up my deductions.

Thanks

Scott No Mates wrote:
generally, the agent will charge % of the sale price achieved, the marketing costs. Your solicitors/Conveyancer will charge their costs + disbursements, bank will charge their debt, discharge fees & state charges. You get the rest.

thanks for the help, so out of a $360K selling price, how much would i get in my pocket…[Read more]

Yes just a rough breakdown would be great of the selling costs only, so not sure if the building costs are applicable.

Cheers

You need to choose which one puts less strain on ur wallet.
Your idea in A is a good one but what if u dont always have a tennant in there, would you be able to afford 2 mortgages?
I think B or C would be the best option.