Forum Replies Created
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 buying is a 1 bedroom luxury apartment so I could always live in that.
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 income aspects of positive cashflow properties, and the fact that it puts money in your pocket month after month – that's one avenue that you can get serious financial freedom.
But each to their own, I guess. Different people have differing risk profiles and preferences and goals.
Getting a bit confused here. In theory if you have a cash flow positive property, wont you have to pay more tax when you lodge your return? Because you have to report all the income you are earning from the property….
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 will still come out on top.From what i read i believe a negatively geared property is more suitable to lower the amount of tax you pay and is more likely to appreciate in value over time.
So from that perspective I do hope my property is negatively geared.
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 (roughly)?
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.cheers for the advice, yes i have been researching lately in rurual towns, seems like a good way to start.
Hi Eric,
thanks for your advice.
The trouble is i have about 23k (and rising) in the bank and most properties these days are in excess of 250K, so not many banks are going to lend me 90-95% of the sell price.
I really need an investing partner, my friends all have mortgages and cant afford it, and my dad already has his own properties to take care of.
So getting a start is the most hardest thing it seemsthanks for the advice. yes i didnt think they were good investment opportunities. It just seems so difficult to get started in the market these days, especially if you are on you own. Even 1 bedroom apartments cost more than $300k, which means you basically need to have a $100K salary to afford it.
Ive run out of ideas of how to get into the property market!so how does one (steve mcknight) find the finance to buy 60 properties in one day?
