PLC wrote:
The former, Derek.

Though as Jamie has mentioned, if you have been pre-approved once and your situation hasn't changed, there really isn't a need to renew/extend though people do want it for their own peace of mind.

The big question is how reliable the pre-approval is in the first place. There is a thread on this forum in the last…[Read more]

kat13 wrote:
I get the general idea that this is what some people do, however I cam across someone today who says not to do this ever.  Is this really a problem, has anyone got any stories/advise on the pros and cons of this?

Be interested to know this 'someone's' investing experience and knowledge.

I assume their solution was to save cash…[Read more]

Hi Tom,

Is the 90 day extension fairly widespread or confined to a limited number of banks?

Cheers

njohns17 wrote:
Hi this is my first post so hopefully makes some sense and is appropriate!

Welcome aboard. Your question is entirely appropriate and you'll probably get a few responses over time. Some of the responses may vary a little – the challenge you may have is to work out what suits you & your situation.

njohns17 wrote:
We are in the…[Read more]

No probs

It will depends upon the long term objectives of the people concerned.

Given they have no other debt – paying down the LOC has some attractiveness to me. Offset account would be better.

dgirl wrote:
They were considering simply renting the family home but after conversations are now considering buying one or more investment properties.  They are still unsure what to do with the family home, now that the home is paid off, and it is not tax deductible.

Tax deductibility should never be the primary reason for investing. They…[Read more]

Hi Dgirl,

LOCs are a great tool if used correctly and with discipline. I have seen people squander their LOC – this is certainly something to be avoided at all costs. The greatest tainting of LOCs occurs with people mixing non-deductible debt (car, holiday etc) up with their investment debt.

I like to keep things simple – I use an offset account…[Read more]

See you have been thinking about things already.

It is possible to use a strategy of buying alternating properties (one for cashflow and the next for growth or vice versa).

The reality is that is over-simplifying matters as your situation may demand an extra cash flow (or growth property) property at some stage along your journey.  What you buy…[Read more]

Hi Wheeler,

Is your unit along Herdsman Parade or somewhere else in Glendalough?

I understand the Herdsman Pde units have shown little growth over the long term apart from tracking the wider market

Hi TT,

My understanding is that you will not be able to claim the interest on the redraw of $110K if the $110K is used to pay down your home loan.

If, however, you were to use that redraw funds to buy other investment properties then interest on the $110K redrawn would be deductible.

Please note I am not an accountant – someone who is will be…[Read more]

TT1222 wrote:
Our situation is: my husband and I got married recently, before married, each of us bought one property as the first residential property in QLD. We decide to live in my property after marriage, and put his as investment. His house originally bought at 630k, with 540k' s home loan. And in the past couple of years, he repaid more…[Read more]

mjm2 wrote:

We are wanting to get into property investment, with the aim to buy multiple properties for future financial security for ourselves and our kids.

Nothing wrong with the broad concept – specifically how do you intent to do this? Lots of rental income and live off rent or wait for the properties to grow in value and then sell and…[Read more]

Thanks for that – I will have a read when I get some time.

Cheers

Hi Leon,

As Terry has said you need to sell (not simply transfer) your share of the 'old' property to your wife and use the proceeds to pay down some of the mortgage on your new house.

While this all seems relatively simple you do need to seek professional tax advice to make sure you get the whole thing right from day one.

I am not an…[Read more]

Hi Paul,

While you may have initially bought the property 'because a friend offered it to you" I suspect there was another underlying reason you bought the property.

For example was it to generate rental income or was it to buy an appreciating asset – both of which, in turn, will lead to a net increase in your wealth position. Does that sound…[Read more]

That is correct Paul – if redraw is for investment purposes the interest would be deductible.

Hi Paul,

Exactly why did you buy this property?

jmsrachel wrote:
  The exact words the agent said was "we let you purchase this property at below market value,

Err no – the vendor accepted the price.

If this comment is a 100% reflection on what happened then this agent/agency did not comply with their fiduciary responsibilities to the vendor.

Maybe things are 'tight' in the office and…[Read more]

Hi Kat,

Assuming your $300/week is net of all costs that will give you $15K/annum less tax.

So if you wanted an income of $90K/annum (before tax) then you'll need six properties.