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I always pay more for higher floors (basically more light).
Some people don’t like stairs, having said that I live on the 4th floor and never have an issue with stairs.
Bullshit. 30 year is around 4%.
I live in NY….and I could never imagine buying an investment here.
Not to doubt you but based on what I know very hard to find CF+ property in good areas (I live in Brooklyn heights now but have in the pas lived in Harlem, UES etc)
So terry, is there no “retribution” if the bank finds out you are lying?
I agree with you about the tax implications and in the past it didn’t really matter…..but with the spreads due to apra….are you sure you can get away with lying to the bank?
Well that’s just silly….which idiot wrote that rule, it would be like saying a SMSF can only buy 1 stock……
Yep Richard,
Like always you are the voice of wisdom….and what the press writes about and reality totally different.
Your comments make total sense, particularly renovation costs being counted as contributions which is what I wrote/initially thought. Curious though why a SMSF couldnt do a subdivision or “change the property to get he best return on investment”?
In a subdivision wouldn’t the SMSF still own both titles etc?
sure why not, as long as your equity was high enough the loans could self service.
Sharko…… your page links to a site pimping the course….are you a related entity?
seems you also run a facebook page….also marketing the course….?
I’ve been surprised how much the USA financial talking heads have been commenting that Yellen might push off the September 0.25% rise until December (or later), is it concerning to anyone else that the market feels so week that a 4% devaluation in the Yuan is such a big deal….eg. is the economy more in the toilet than us mere mortals are being led to believe.
Whats the take by the Australian media/business world on what this means for Australia?
Lol any local articles about poor Chinese now having to pay 4% more for their overseas investment properties?
Keep in mind the benefit of buying her out (rather than selling and then buying somewhere else) is going to be you will be saving sales costs (eg agent fees) AND the cost of stamp duty buying somewhere else.
The real question is…..seeing she is your ex do you think you can actually agree on a price…..
If you can then offer her 50% of this sales price less 4% sales costs. eg if you both agree the property is worth $500,000 then you should be offering her $230,000 cash as a buyout offer.
I’d be very surprised if she says yes though and you don’t get into an argument over what it is…./isn’t worth :(
wow that’s just nuts !!
wonder what all their staff are thinking about now……I’d be looking for a new job as the workload is going to fall dramatically.
St George increase investor fixe term rates last week.
5 years is now 5.59%
Still a pretty good deal to allow you to sleep at night for the next 5 years……but based on China……I don’t think rates are going up to 2% in 2016 like the USA reserve bank originally bullishly planned.
Basically we are in an extended period of low interest rates.
Hi Jacqui,
15 years for rental shortfall is way way too long.
Even with the current “muddling” rental increases in Sydney last year of only 3.5%pa your example of $150pw shortfall on a 600k property renting at $460pw the increase would be $16 pw this year.
I good years where rent is racing up, it should be closer to double that.
Eg you should have made up the shortfall in 7-10 years where the property at 80% IO mortgage is paying for itself completely due to rent rises.
The real issue is will investors OVERSPEND like they did in 2014/15 and the initial shortfall is way way too much.
Hi Jacqui,
That’s the beauty of compound interest….eg over time ALL investment properties should cover their costs eg initial sales price is “fixed in time” and rents keep going up…….
Hi Phil,
it isn’t “unfavourable for taxes” and you are right its what the loan is use “for” not what the loan is “against” that determines its tax treatment.
it is a problem however that they don’t offer an “offset loan” because if you pay down then “withdraw” for non taxable purposes…..yu end up with messy accounting, fortunately for us we only “pay into” our portfolio loan a the only “withdrawals” we make are deposits to purchase the next property so for us its not an issue.
There is also the issue of x-collaterisation which I don’t have an issue with….but lots of people do.
we didn’t end up going with them but yes reputable and seemed to offer great rates.
[email protected] was the guy we were talking to.In Sydney we pay 5% of rent (+0.5% gst) + 1 weeks for a new tenant, On one of my investments I’ve paid $40 for a lease fee to “re-up” an existing tenant and let them know this would be the last time I’d be paying for a new lease to be drawn up and it needs to be taken out of the 5% otherwise I’d be moving my property to another agency.
I’ve also let them know that the property is NEVER to be a month to month rental without my written permission so longer leases mean less work for them.
Dean do you fund all deposits with earned cash or do you ever refinance? If you plan on refinancing to generate more deposits then having 2-4 yrs of no growth will definitely put the breaks on the purchasing plan. You can have your cake and eat it too if you are willing to move the location of purchases around a bit to beat the ripple or invest more counter cyclically. Eat to their own and I am all for long term but Corey is right buying if you really believe we are entering bubble phase seems counter productive to me.
Hi BA,
A bit of both. The reason “waiting” doesn’t make sense is because as deposit funds are available we “re-up”.
The term for buying on the “ups” and “downs in the equity markets is called “averaging” and as long as the overall trend is in your favor its helping your overall asset based grow.Cheers,
DeanHi Corey,
That’s because I’m a long term investor buying one property every year and holding for the long term. I dont care if prices go up or down for the next few years (to be honest I don’t care where prices go until I start to sell in 15 years…..and even then only plan to be selling slowly over time).BTW seeing no one has answered my only advice is try and bid early with a low price (eg 60% of what you think it will go for) and ALWAYS bid with irregular numbers
eg $435,000 and then 518,000 and then 542,000 eg try to get the auction out of jumping 20k/50k/100k lots etc. A good auctioneer will reject your bid and say only 50k increments at this point….but it puts a stutter into the auction.
The only other advice is that although I recommend being the first bidder (to set the low starting point) and bidding often lower down…..you should then STFU during the middle bids, don’t make any more bids once the auction gets to 80% of your buy price even when it looks like the auctioneer is going to “call it”, and then jump back in very late in the bidding. eg trying for $500 increments
