Interest rate fluctuations do play on some investors and home buyers minds largely as a result of changing affordability (real and/or perceived).To me the bigger issue is maintaining focus on the bigger picture and accept, and work with, interest rate variations along the way. As interest rate changes (and costs commensurately increase) it may be…[Read more]

Hi Emma,If you analyse the Perth market at the moment it is apparent that the market has slowed significantly since last year. Simple maths tells us the growth of last year ~37% (ABS) is not sustainable and anyone who entered the Perth market in the last half of 2006 with a view to making money in the short term is taking a risk (sure some may…[Read more]

HI Sanjiv,If I read this correctly you are recommending transfering part of the non-deductible PPOR loan across to the investments.  The ATO will still consider the purpose of  these additional borrowings as being for PPOR and thus the interest remains non-deductible.Hi Holo,Without knowing the ins and outs of your situation (age, income, date o…[Read more]

Hi Col,There is more to renovations than tax savings. Renovations should be considered as a means of creating 'instant' growth, increased rental returns and/or as a means of staying on top of your properties needs. To me taxation is a supplementary benefit.From a purely tax saving perspective while the costs of the renovations are not 'deductible'…[Read more]

Originally posted by chris67:
Same tenant for 4 years with no rent rises.

Increase the rent – you’re $1800 ‘down’ here.

We own outright our PPOR, valued at $350,000.

Our accountant suggested we look at Investors Direct Cash Flow Loan and I’ll be contacting them to see what they’re about.

I must admit I do not now the full details of Investor…[Read more]

I’ll preface all my following comments with this – there is limited information provided here so what I have to say may be off track.

Originally posted by fivetalents:
We have about 450K of equity in our home at the moment, which we are renting out because we have moved interstate. We want to buy a property and develop-which we can except that we…[Read more]

Originally posted by rgranger:
Life is whizzing by and I have just come to realize that I am in a pretty bad way! The only “investment” that I have is equity in my home (about $300,000). That is literally it. I live in Tasmania, and would be interested in exploring commercial (or residential) properties. Was anyone in a similar situation and has a…[Read more]

It works in Perth too – more prevalent for public schools as there are boundaries in place.

Private schools are not as confined from a drawing in perspective.

Derek
derekjones1@bigpond.com
The Investors Club http://www.monopoly.tic.com.au
0409 882 958
Skype – derekjones2113

Hi BKim,

Moranbah = a town of 8000 people singly reliant on coal. While coal and related resource sector is good Moranbah is good. When resource sector cools so will Moranbah.

I would also question your six months time frame. Why the six months – are you buying and reselling?

Property is a long term investment – a six month time frame is…[Read more]

Originally posted by Mortgage Hunter:
Originally posted by lstreet:
Hi everyone!

Im in abit of debt, and was wondering if anyone had a good strategy to help me get out of debt so i can get my credit rating back so i can INVEST!

lstreet

I have a long document I can email to you. Please drop me an email if you would like to see…[Read more]

Originally posted by adamw:
We can’t gear up any of the others. The only one available for that is the paid off block of land. This would be taking money from a deductible investment (the new property that has a 6 year rental agreement) to a non deductible one (vacant land).

I realise I am repeating Terry’s pick up – but this could be the…[Read more]

Hi Rob,

Why not keep what you have and leverage off your available equity.

As it stands (assuming banks will lend at 80%) you have capacity to release approximately $90K from the unit and $79K from the house.

This equity should provide the deposit of $94K (assuming 80% lend) + $23500 for costs, leaving a total of $51.5K for other…[Read more]

Hi Rob,

Hmmm – I am a little confused by your figures. Rental income and repayments are not distinct.

I would also add that property values, purchase dates and loan amounts would assist those who are prepared to make comment.

Derek
derekjones1@bigpond.com
The Investors Club http://www.monopoly.tic.com.au
0409 882 958
Skype – derekjones2113

Hi Grant,

At the end of the day the decision has to be yours.

For me I would ensure that the property fits your plans and not some sales pitch that convinced you that this was the property for you. What is your plan?

Secondly – I would be worried that the Bunbury market has peaked (or is close to peaking) and that the property is going to hold…[Read more]

Hi Deb,

Try this list:

https://www.propertyinvesting.com/forum/topic/6845.html

Derek
derekjones1@bigpond.com
The Investors Club http://www.monopoly.tic.com.au
0409 882 958
Skype – derekjones2113

Originally posted by lstreet:
This will be the biggest lesson i have ever learned!!!!!!!!!

Hi Lstreet,

Lesson number two – insurance is a good idea.
Lesson number three – make sure you meet loan repayments even when the item of the loan has gone walkies so that such an occurence doesn’t happen again.

But having said that congratulations on…[Read more]

Originally posted by Jonathan.Holmes:
I have a significant interest in my own home, being worth about $400,000.

I still have an $80,000 mortgage, and with 3 children, find it difficult to save.

I am wondering if selling my home to an investor might be a good idea. Then I could lease back with an option to buy some time down the track. By doing…[Read more]

Hi Jonathon,

We don’t permit advertising and as such I will give you the benefit of the doubt. You can post the details but I would recommend you refrain from identifying the location of the property otherwise someone, less scrupulous, may sneak in before you if the property suits them and their needs.

Derek
derekjones1@bigpond.com
The Investors…[Read more]

Originally posted by queengucci:
Thanks Mark!
I will sell the ones taking money from my pocket and keep the others.

Hi QG,

I believe you need to rethink this as it is possible that the ‘one taking money from your pockets’ is making bundles in capital growth and as such may well be contributing considerably more than it is ‘taking’

If this is…[Read more]

Originally posted by skyh:
can we use line of credit for our first IP? given that no home equity is used, i.e. using the IP as the security

A line of credit is secured against a recognised asset such as an existing property.

or we must either choose P+I or IO for our first IP if no home equity is used?

After you get the loan whether you choose…[Read more]