Forum Replies Created
Hi Scoops,
In the main I am a ‘buy and holder’ and would normally say don’t sell – however in your case this may be the best course of action both in the short and long term.
Using the figures quoted you walk away from the sale of the two properties with $560 less costs and CGT if applicable. Is there any CGT payable?
If all of these funds are used to pay down the new home this will leave a non-deductible loan of $100K (give or take a bit).
Then set up an equity loan or similar using the available investible equity of $380K and use this money for deposits on other properties.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Originally posted by Ref:my monthly repayments @ around $480 per mth. I owe $160,000 on my mortgage.
Hi Ref,
Is this correct? The monthly repayment figure seems too low to me and my maths.
And the car debt is?
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi Bradles,
A broker has the advantage of having acces to a whole range of lenders each with their own range of products.
By way of contrast a bank is limited by their policies and products.
As Steven said a broker earns their income from a commission paid by the bank – you do not have to pay anything.
I would also add that you are more likely to access an ‘investing broker’ on forums such as this and because of this they will be familiar with your likely short & long term needs.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
As Swampy has said the information given thus far is a little skimpy and, on this basis, all comments should be taken with a ‘grain of salt’
Originally posted by ajsov1:my father owns two units and is willing to sell one of them to help with my mortgage payments on a house for me and my family (Put about 100,000 towards the loan), im just wondering should he sell the unit or should we use the rent from both units to help pay?
At this stage it appears as if you are only looking at the situation from your perspective. There are a number of implications on both options presented so far for your father.
If your father sells he will/may be up for CGT and his ‘costs’ could be significant when selling fees come into the picture too. On the other hand if all the rent is directed to you to help with mortgage payments then your father will be obliged to declare income (and pay tax accordingly) on income he is effectively forgoing.
You will also need to consider other less savoury issues that may arise from your default of payments and/or repayments to your father, the impact of this gift on your inheritance and possibly some shared ownership/caveat matters to protect the interests of your father. Along this line it is important that all worst case scenarios are explored and satisfactory solutions
determined before embarking upon such an arrangement.You haven’t indicated whether or not your father is sufficiently able to stump you the deposit from borrowings and whether or not he (or you) has capacity to meet these repayments from his/your funds.
I would also be concerned about your fathers loss of an asset and/or income if this forms part of his own retirement plans.
im really interested in property investment but want to own a house first.
You may qualify for FHOG if you do buy an owner occupier first (check out Simon’s website for links to the relevant authority in your home state for more information. If this is the case you could buy a home, ensure qualifying criteria are met and then move out into a rental property making the original loan tax deductible.
Either owning a home or investment property and having equity therein is a valuable step in any further investments you want to make.
The first steps are always the hardest and without knowing your age it is difficult to say be a little more patient or what have you wasted your money on – either way a budget may be a useful step for you and your family to make as your progress your goals a little further?
i know selling isnt a sin but im just wondering what everyone else thinks?
Like Simon I am a buy and hold person and would only sell as a very last resort.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
+ trailing and/or up front commission from the fund manager?
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi Shelby,
If your advisor is getting a trailing or upfront commission on your shares then he will be biased against property.
There are other advisors who use property as their core investment vehicle and who also do well in the long term.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi Dom,
There was an article in one of last weekend’s papers that highlighted some issues associated with inspections and property purchases.
In a nutshell (and from a skim read memory) a couple bought a house in Mandurah (WA) and got all the necessary searches and inspections done.
After settlement and inhabitation some issues that came to the fore, and not revealed by any search/inspection included, non-approved carpport, telstra piping used for plumbing work, white ant, some poor workmanship and there were others.
The purchasers tried to get their ‘pound (or is that 454gm) of flesh’ from all and sundry including REA, conveyancer, inspector/s etc.
Sent letter to Department of Consumer affairs (we don’t deal with these matters) and then the small claims tribunal (sorry can’t help – your problem – everyone did their job).
So in the end depsite their best efforts the couple were left with some expenses they hadn’t budgetted for.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi Lapua,
I was Patrick Thatcher at http://www.rmgaccounting.com.au He is basedin Subiaco.
I also suggest a search on Perth Accountants as other recommendations have been made too.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi all,
Why reinvent the wheel?
There is an active, non-aligned group in Brisbane that meets monthly and who have accesses various speakers/experts at minimal cost.
Shane (AKA Sunstone) regularly posts the meeting dates and details here with this being his latest offering
https://www.propertyinvesting.com/forum/topic/15399.html
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi Rudy,
8% for a storage unit is not flash – and the only reason someone would/should consider a storage unit is cashflow.
If you have equity to burn and need some cashflow – maybe but as indicated 8% is not that great on these types of properties.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi BB,
Not a big fan of Defence Housing but a number of people use them as their launching pad.
Recommend a search of the forum using ‘DHA’ and/or ‘Defence Housing’ – the search facility is accessed through the search button located immediately below the ‘forum boards’ button. Top left side.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi M and D,
The other point I would add is the only reason I would consider selling is if I have too, I get an offer to good to refuse, if the property/ies stop doing what they were bought to do or if they have performed like dogs.
The other point you need to consider is why did you buy these properties in the first place and if they are performing as expected – which it sounds as if they are then there is no need to sell.
You will make far more money out of growth and you need growth/equity in a portfolio to enable continued forward momentum. This is what you have why sell and lose some ‘profit’ to CGT when releasing equity is so simple.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi Mark and Dot,
I am with Martin here – why sell something that is largely paying for itself.
To me the best decision is hang onto these and utilise the available equity for other investments.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi Suzette,
There was recently a similar question asked about serviced apartments. Many of the issues are same/similar so have a look at
https://www.propertyinvesting.com/forum/topic/15283.html
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi Acey,
You are missing the same cards we are – apologies for the cynic in me but methinks the missing cards were very rarely printed.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Geeez Michael,
With language like that a moderator is sure to come along and edit your post.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
I thought there may have been a hiccup – maybe it had something to do with the ‘full moon’
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Originally posted by DanTheMan:if you are talking waterfront somewhere on the coast of WA, I would suspect a couple of dollars
Hi Dan,
Dems fighting words [biggrin]
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi Neo,
Send Julia a PM. She regulalry posts here and has a website http://www.bantacs.com.au – while she is not on the Goldcoast the depth and extent of her knowledge is evident to regular readers.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
