Hi Daniel,

At the end of the day the decision has to be yours and the options in front of you are many.

For mine the key iingredient is what do you really want – from your comments it would appear that a ‘home’ is your preferred option.

While this is admirable your home loan is one of the hardest loans of all to meet. The repayments and costs…[Read more]

HI Fatman,

I would suggest that you use the search facility as this topic comes up time and time again. The search function is located under the forums button across the top of the page.

In short, naive investors, are seduced by the cashflow returns on these types of investments. The total return including equity is substandard thus making long…[Read more]

Originally posted by Dave L:
Would it be beneficial to borrow the full amount now (interest only payments of $896.00) place it in an offset PPOR account therefore all debt would be tax deductable

Hi Dave,

I like the way you think – however when banks lend for construction purposes they initially approve the loan based on their valuation of the…[Read more]

Originally posted by Stuart Milne:
$50,000 doesn’t buy much advertising anymore. Apart from that I couldn’t see anything that made me cringe. Is there a contingency fund? If so how much? Is this forecast prior to return so it’s a bonus if all goes well without delays or unexpected price increases on services?

Hi Stuart,

Caught these couple of…[Read more]

Hi Neil,

I have looked at your previous posts and it seems to me that you are currently throwing darts at a dart board without really knowing what you are trying to do – no offence meant.

I assume that this is your first foray into property investment. Is this correct?

Based on this assumption I make the following comments.

1. Work out what…[Read more]

I would suggest you do the one step two steps forward manouvre.

That is refinance the property and buy out your father’s share and then move forward from there. The fact that your father’s ideals are different to yours and his willingness to focus all energy and cash on paying this property out without consideration of the next step will hold you…[Read more]

we really need to know a lot more information in order to give you a decent answer.

For example what are you trying to achieve in property investment? What is your goal? Your timeline? Your investment preference/s? Your skills? and so on.

I would ask one key question – have you explored the possibility of using the equity from the existing…[Read more]

Hi Nik,

Unfortunately the process as you have outlined will not provide your parents with deductible interest. The ATO will look at the purpose of the new borrowings (to buy the new home) and this will determine that the refinance money is not deductible.

I assume your parent own the first property as joint tenants and have equal shares in the…[Read more]

Hi Didi,

Don’t go to a bank – see a broker with access to a variety of lenders.

Be up front with the broker so they can best place your loan application with an institution that will assist.

Bad credit ratings are not unusual and provided the reasons are valid then there will be a lender out there to…[Read more]

Originally posted by Housemender:
The problem is that my in-laws believe that I’m totally mad and am leading my husband astray and that interest rates will go back up the the 17% rates seen in the 80’s and that we will “lose everything” though our being so greedy! They are desparate to make us see the light.

Hi Housemender,

I would suggest you…[Read more]

Hi Skyreacher,

Try this link https://www.propertyinvesting.com/forum/topic/6845.html

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113

Originally posted by suelever:
I do not wish to sell it as its in a lovely location with lots more potential for capital growth as it has now been valued by estate agent at $420,000.

You have given enough reasons NOT to sell this property. It has obviously performed well for you and with further upside in the pipeline it sounds like it is a…[Read more]

Not sure if they do but http://www.seqrents.com.au seem to accept ‘private’ type rentals. Might be worth a contact.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113

Originally posted by Nigel Kibel – now moved to the desired location – Derek.

Firstly you need to look at the history of the property? What is trhe average income per year?

The other important thing is that on these type of deals in many cases the banks will deem this a commercial venture and they may only lend you around 60-65%. I would suggest…[Read more]

I use a very simple, no frills, free excel spreadsheet I developed for each property.

In my opinion the simpler the system the better but the critical details is regular data entry and information management.

I get a little anal with paperwork and will make data entries as the income or invoice statement crosses my desk. Each paper reference is…[Read more]

Hi Ella,

It seems to me your focus is all wrong.

Taxation benefits are great but they should not be the sole for purpose of an investment. I suspect that you have met your FP and unwittingly mentioned the lack of tax benefits and he/she is using this as leverage against you.

Let’s consider what you have – an asset worth $180K that is ‘costing’…[Read more]

Originally posted by Rexilla99:
What they do is buy blocks of land in sought after location and build turn key homes that include plasma TV and furntiture. They also have other developments ongoing all around Australia.

As per the other comments – if in fact these guys are ‘that big’ I am surprised they need to rely on mums and dads for their…[Read more]

Hi Derek,
my parents want to stick with the property, no matter what.
They are very family oriented.
You mentioned leverage, what options are available without getting rid of the land?

Hi Redspida,

Leveraging off property is very easy.

Banks will typically lend up to 80% (without mortgage insurance and depending upon zoning issues – if any)…[Read more]

Stamp is always payable when the name on the title changes. Capital gains tax isn’t payable though if it’s a PPOR.

In this case there may be – from the depths of my memory there is a size limit on land. From memory land larger than 2 acres could incur CGT. An accountant please?

The rider to this is also the purchase date of the property.…[Read more]

HI Don,

It would be interesting to get Michael Yardney’s comment here.

Some recent research I have just completed tends to suggest that the housing industry is undersupplying dwellings in many of the more significant cities around the country. As a result vacancy rates in many of these places have fallen to below 3% (point of market equilibrium)…[Read more]