Hi David,

If you need a value for finance purposes then it pays to use a valuer from the appropriate lenders panel. The valuers themselves will tell you if they are on the relevant lenders panel. You will also need to ask the valuer to write the valuation suitable for mortage purposes for the bank you are using.

Be aware some banks will still…[Read more]

Originally posted by gronk007:
generally looking around the inner west or lower north shore, but a 1 b/r is all i have for capacity/serviceability.

Hi 007,

Without knowing the full details of your situation it is difficult to comment with a degree of accuracy however if finance matters are your primary stumbling block have you thought of…[Read more]

Hi Leewizza,

I do not use these so am unable to verify accuracy but they may be of assistance. Be aware that tax threshold changes, depreciation rule changes and so on are constant and as such may (or may not) affect the accuracy of…[Read more]

Hi Terry,

Not sure if this is in the same league but……..

I used to work for the Education Department and we got a free biro whenever the previous one ran out[biggrin]

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

Originally posted by AmandaBS:
First I’d probably visit the bank or a finance broker and get an idea of your borrowing capacity.

Agreed – and if if the broker says ‘not yet’ use the time to do your research.

If this is going to be your home I’d be looking at a principle and interest loan to gain as much equity as possible. You want to pay down…[Read more]

Not disagreeing with Terry at all.

The flip side of the cost equation asoutlined by Terry is the security of knowing what your repayments will be for the duration of the fix period.

If you do fix five years and above, in my personal opinion, is too long in most cases.

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

Originally posted by Qinvest:
Sorry, that wasn’t my intention at all, just after feedback. I am new to this web site, sorry if i am on the wrong area.

Hi Qinvest,

In my experience there are many Mum and Dad investors who are not aware of section 15.15 of the tax act and the capacity to forward adjust tax paid.

I tend to agree with NATS – the…[Read more]

Originally posted by Bigbelly:
Thank you for your response. I just trying to understand the possible gains of negative gearing, when income reaches the 48.5% tax bracket.

This does not mean the whole $100K is taxed at 48.5% as there are taxation thresholds as follows. In the current year (0506) according to the ATO you will pay $28200 tax for the…[Read more]

Hi Marty,

Without knowing the total picture that is Marty, his investment goals, property price, holding costs, value, rentability and so on it is difficult to say.

Having said that I would take a stab with the following comments – too small, limited market, limited growth, finance issues, and so on.

I get very concerned when people contemplate…[Read more]

Hi Swoffer,

Well picked up – LVR, access to security and so on are all issues. While there may be movement in bank policies further down the track (in fact it may have happened already) this is the big ticket issue at the moment.

Also recommend a search of the forum – this topic comes up quite frequently. See under forums button at the top of…[Read more]

This post, by Property WA, has been cut and pasted from another, since deleted, thread.

Hi Qinvest,

We have two clients do the Variation method and one swears by- so for some it works.

Two things that I have found to way up –

1)The Variation allows you to put the ‘extra’ money into an investment now rather than wait for the Lump Sum return at…[Read more]

Hi Bigbelly,

Assume a person is on $100K as per your example they typically pay around ~$32500 (as per Chris’ eg). Another way to look at this is the tax payer takes home $67500 but acquires no assets as per this example.

Assume two taxpayers buy a negatively geared property that ‘loses’ $20K over the course of the year.

Person A – On a…[Read more]

Hi SK,

While price declines/stabilises are on record in recent months in a number of Brisbane suburbs these statistics only reflect the movement in the median price. Within each suburb there is property that will perform conosiderably better (and worse) than median price changes.

The other comment I would make is that such deviations really do…[Read more]

Originally posted by InvestorInTraining:
I just thought it would be a good entry into the market – and if it generally isn’t costing me anything from week to week I thought it might be a good idea.

Hi IIT

This comment makes me wonder whether or not you have fully though about what you want to achieve and how you are going to do this.

Simply…[Read more]

Hi Felipe,

The question has been hanging for a while now so I’ll open discussion.

There is no clear cut right or wrong answer as individuals have different circumstances that necessitate an individualised approach.

For me – growth is the key attribute that I chase.

Good research and considered decision making will assist me in achieving this…[Read more]

Well said shake.

Do not be seduced by good returns which because of other reasons will slow you down in the long term.

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

Hi Redwing,

Congratulations – they say the first mill is always the hardest and thereafter it will continue to leapfrog (or is that snowball).

Is that $1m in equity or $1m in property?

Now get out there and keep looking.

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

Hi Straw,

How much to offer? it is a bit like how long is a piece of string.

To determine this you need to consider how much you can afford, what similar properties in the have previously sold for (not what they are listed at), try to find out why the vendors are selling as this may determine how desparate they are, what you highest buying price…[Read more]

Hi Dr. X,

Changing tack slightly – great read in February edition of API.

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

HI Redwing,

It seems our ‘friend’ TUREH has been busy – I am sure the returns here will be very attractive to some investors.

I will also add Rewing that you have blown your chances for involvement in this deal – did you miss the line that says “Please,you have been advice to keep top secret as i am still in service”

You should really be…[Read more]