Forum Replies Created
Boardy, I have 2 orperties south of Perth in the Kwinana area. I dont buy unless i know the area well and what infrastructure is happening now or due to shortly. Other areas I wouldnt even attempt to help anyone with as I wouldnt market an area Im personally unfamiliar with.
So far a $91k 4 bed house bought july 2002 is worth $150k, and a 3 bed unit in a security complex cost $70k now worth $110k. Have fun.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
Thanks buddies. All appreciated. Foston, no thanks mate. Wife and I share bags. You are the 7th person to offer though and thats only this week. HEHE.
Thanks Minimogul, we are a bit stressed with our big relocation next month but if we hadnt booked this in December we certainly wouldnt be going anywhere now.Ho hum, it’s all to hard. Or should I say Bula!(hello) or Venaka(thanks)
DD[cowboy2]
Don’t sweat the small stuff,and it’s all small stuff!!
4 townhouses in kingston no baths all rented easily. 22yo student, young couple, 62yo lady and a 53yo teacher. All cool, and good tenants. Sister buying the 5th in block of 8. Who says im not a megalomaniac.!! With my improvements on the property the rents have jumped $40-50/wk rent in a few months.
Happy, yep. So go buy your house and be glad its unique in some way.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
Hmm doing it for family you end up doing more than just sourcing. I know just got one for sister and one for brother in law last week. It is hard work. I suggest you get one of us that do sourcing to help your family so you can stay out of the politics of family vs profit hunting for yourself.
Try $1000 without searches, you do that, and its going to be $1500 in line with Minimogul from July. Sounds good to me.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
Guys and gals if we all had the same opinions all the time not much would get done in a hurry. Lets respect each others views and if you cant say somethig positive then just let it go. It is not worth all the agro.
A difference of opinion is healthy, worrying about if, maybe, might, possibly etc will just make you unnecessarily sick.
Breath deeply and move on.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
you actually have to add her to the Credit reference association who everyone checks credit history with. Unless oyu are a bank this usually costs a $1500 fee for a years membership. I queried the fact I had details of a dodgy person and why wouldnt they want to know and they said pay the money or go away.
let Karma do the work for you. They usually come unstuck in the end.
Good luck with your next totally un associated to you tenant.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
The land tax threshhold for IP’s is no more. Thats what i thought I heard but I have been drinking Tullamore Dew while reading some posts.
So im not 100% on that
DD
Don’t sweat the small stuff,and it’s all small stuff!!
this tennis match has been great to watch ladies. Im sure lots of people are being scared to voice their opinions as I speak.
What was the original question??
DD
Don’t sweat the small stuff,and it’s all small stuff!!
Vader you really need to loose the patched up 260ZX mate apart from that go and see a post I left in another help topic. that will show people I can discuss both sides of the fence, why to and not to pay off your own home.
Its all fun
(yes AOC rules)
DD
Don’t sweat the small stuff,and it’s all small stuff!!
Yeah thats one thought but look at it this way. All funds goto expanding your property base while effectively(IO) leaving your own house on hold. This means that whenever(now or later) you put funds to it you do not get any tax benefit. This means that now being the cheapest time you will ever buy property, is the best time to funnel money into IP’s. Push the envelope until its tight then ease off with sales when your IP’s have greater capital…down the track, and you still have same mortgage on own home.
Easy call for me. I could have taken small chunks off my mortgage in the last 2 1/2 years but have waited until the 6 IP’s in the same loan could give me enough equity to make it a small payout to release my home.
A year ago we leached $210k out of the big loan for deposits, bought 6 houses last may and made a killing. Now a year later we have had the 6 ip’s revalued and have effectively got extra capital of $190k out by now only having to put $82k in to release the home.
This means that by getting as many IP’s as possible our choices and options are 10 times what they could have been as a “wage slave” pumping my small tax depleted income into my own home.
As far as depreciation schedules, 1) they are suitable for all properties as all properties have fixtures and fittings, and 2) even a $72k purchase in August last year in Tassie(now revalued at $100k)got me a $3k deduction in year 1. So for the $600.00 you pay per deapro, you get at least 10 times that back over the course of the 10 year schedule.
We always use the fastest deductable schedule, you get 2, as who knows if we will even have the property in a year, leave alone 10.
Fear will kill you if you let it.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
We have had a similar prob with joint names on IP’s. Luckily we got better advice year 2 and since then each new IP is in either one or the other not both names.
Other options are trusts for new purchases but thats a few K to set up and then $1000.00-1500.00 to read trust deeds by lender and can add as much as 2 weeks to final approval which in some cases is critical.
What city are you in?
DD
Don’t sweat the small stuff,and it’s all small stuff!!
ok starting out all you can afford is what you buy, cheapie properties. So if you get afew then a few more and they work coz they have the cashflow or close to it for your budget to cope, stay there and dont be greedy. We have lots of small properties and like it that way.
Buy 1 x $500k property and you have less rent and 1 big risk, 5 x $100k gives you 5 different locations, less risk per property and if a crash happens which is affected first, certainly not the entry level properties. More rentable so lower vacancy rates and a more sustainable and consistent growth. Go get some play toys.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
Got the bug when my wife dragged me to a few seminars, did the off the plan unit think and sold it a year later $60k up. Paid off the house. this was 3 years ago. We have jus sold an IP1 years after buying it and made $85k on a $100k purchase. Life is looking good and im 42. New house in Coffs we move into in a month. I love property with a passion I never found in any employment. I still have my computer business and it is more of a hobby now than ever. its good where i am now. Not as good as some, but I am genuinely pleased to see so many people bettering their lives in these forums.
I scuba dive, pistol shoot, race HO slot cars and have 4 tracks I link up. Im a big kid…and guess what so is my wife. Our kids are super fun and we are enriched by their lives too. Now through property we have more time and muula to enjoy time with them and face the future with big smiles.
DD[cap]
Don’t sweat the small stuff,and it’s all small stuff!!
From my understanding ,and dont bank on it(haha)you can claim some of these when youlock in the capital gains ie when you sell. Not sure which and how much so go get one of the ‘qualified’ financial advisors to answer more accurately.
Good louck and keep smiling.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
Battle of hastings man you need to think outside the square you definitely live in. If you get an IP with say 10% return(7.5% rent + deductions) not only do you get better than the ‘safe’ option you are looking for, but also ongoing tax deductions to boot. The ability to borrow against an increasing asset and tax is payable on capital only if you sell. Seems a better than’british’ option.
Wales beat England in the rugby world cup semi three tries to one and couldnt kick a bloody goal!!!
DD
Don’t sweat the small stuff,and it’s all small stuff!!
add mine to the last posting, do what others dont and stop procrastinating.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
All BS im afraid. I did exactly what you have in front of you, upped to $15k. used it more paid it off more, now off to Fiji on 90k frequent flyer points this friday with family. Had one time I needed it down, did it over the phone very easily, and got the new loan needed. Cash crisis 2 months later, called up and as it was less than 3 months since last change did that without a new credit review back to $15k. I have maxed it out and paid it 3 times in the last 10 months.
Frequent flyers may not seem much but they do save the budget on hols. Get the card to where you are comfortable, not others with their $2k limit giving advise. It is your call completely, i’m just another opinion giver.[fear]
DD
Don’t sweat the small stuff,and it’s all small stuff!!
What you are suggesting works for a time but we had 3 splits with anz and it just cost us fees without any real benifit. We then merged them all into 1 loan 7 props at a later stage.
Its all a personal thing but if you have diff loan with diff lenders you have greater flexibility down the track. IE sell one kill a loan, no delays to reval others etc. Your call.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
Save hard work hard and get that deposit by hook or by crook. Sell the car, sell the dog, create unique and cheap chrissy prezzies, anything to make that first deal a reality. Harder now easier then.
My wife and I took 12 years to pay off a house in Sydneys west. Next month we move to Coffs 200 metres to the beach. Its 3 years from finishing off our home loan to now. It is possible so go for it.
DD
Milly, do not sell your valuable assets as one person has suggested. It then kills your centrelink as well as hitting you with a big Capital gains bill. Firstly go get yourself a depreciation schedule on each of your investment properties. This will allow you a tax break on each house and is tax deductable in itself. Secondly by drawing the equity out of your houses up to 80% of current value you get money to buy more(increasing your tax deduct from stamp duty and fees)and giving you more income so you actually may not need centrelink at all.
An example of what I’m doing for my sister is perfect for you. Borrow an extra $100k from your existing properties. Convert your current loan to Interest only (which you get no tax break on your own house so why pay it off.), then get the new loan as P&I on which you get a tax advantage.
This then buys you three properties which are neutral to positive and leaves enough for renos and maintanance too. So your end result is 5 investments not 2. Breaking even or better, with capital growth potential if setup right. This then kills Centrlink but as its already been said, thats a mental chain on your future.
A good accountant will get you the best deductions apart from your deapro and you are set.
Lets go further….all property on average doubles in value every 7-10 years. South east qld has been a rare example of 100% growth in 2 years I know coz i have 17 there.(yahoo). So at the worst of the average your 5 x $100k properties are now worth $1 mil. Sell 2 then paydown the others so they are super positive( 3 x 33k loans or 2 owned outright and 1 x $100k loan) and forget centrlink forever.
Just a thought.
DD[buz2]
