Forum Replies Created
HI Royalty,
PK has covered a great deal of the important and relevent points.
To that list of ‘things to consider’ I would also add that you do need to factor into the ‘sums’ the loss of your income as you take time off work and also the cost of your labours. Once these numbers are put into perspective the potential for a ‘quick gain’ can be problematic.
You haven’t defined what your timeframe is but CGT on assets held for less than 12 months can be a killer. Whereas if the asset is held for more than 12 months it is reduced to 50%.
Given that you are contemplating time off work to do the renovation this may not be a mjor issue as your capital gains will be offset by a reduced income.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi Zen,
Suffice to say they were better then than they are now.
Five years ago (and without facts at my finger tips to back the statement up) I’d say about 1.5X what the return is now.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi Cruiser,
Haven’t done it but have a look at http://www.onlinesuper.com.au for ideas. Maybe a google search using SMSF may be informative.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi 3MR,
Investment or home is really a question only you can answer as there are some many variables to consider.
Successful investors have started at both ends of the spectrum. There are those who bought a house first and then there are those who bought an investment first.
For example if you were living downtown Sydney it is cheaper to rent a property than it is to buy into the same property. The flip side of this is that you then do not have a place to call ‘home’ – this is obviously very much a family decision.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi people,
Give Dale Gatherum-Goss a call look at http://www.gatherumgoss.com for contact details.
Dale is an accountant for investors all over Australia so do not be seduced by the need to have your accountant around the corner.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi all,
Some satellite views for those interested.
Mon 17th Jan
http://rapidfire.sci.gsfc.nasa.gov/subsets/?FAS_SWAustralia1/2005017/FAS_SWAustralia1.2005017.terra.721.250m.jpgTuesday 18th Jan
http://rapidfire.sci.gsfc.nasa.gov/subsets/?FAS_SWAustralia1/2005018/FAS_SWAustralia1.2005018.terra.721.250m.jpgWednesday 19th Jan
http://rapidfire.sci.gsfc.nasa.gov/subsets/?FAS_SWAustralia1/2005019/FAS_SWAustralia1.2005019.terra.721.250m.jpgThursday 20th Jan
http://rapidfire.sci.gsfc.nasa.gov/subsets/?FAS_SWAustralia1/2005020/FAS_SWAustralia1.2005020.terra.721.250m.jpgFriday 21st Jan
http://rapidfire.sci.gsfc.nasa.gov/subsets/?FAS_SWAustralia1/2005021/FAS_SWAustralia1.2005021.terra.721.250m.jpgDerek
derekjones1@bigpond.comProperty Investment Support Available.
Hi Wayne,
We got called up from Albany on Monday afternoon and have spent the last four days either driving to Perth and back and/or spending two long days out on the fire ground.
The crews from others areas (like us) generally get the ‘grunt’ work so the locals can be released from mop up duties so their local knowledge of the area is put to better use.
Having spent a couple of days in the area I can say there were some extremely hot fires burning through the area. Some residents should consider themselves very lucky.
One house we ‘tidied up’ around was in a slight depression at the end of a track that wound in amongst some tall timber. All of the surrounding trees were burnt out but the house and surrounding 10m was untouched. No doubt some serious resources have been successfully thrown at the house in an effort to protect it.
This weekend (22 & 23 Jan) may become ‘interesting’ if the weather warms up with some wind behind it as predicted.
The people who aslo deserve some recognition are organisations such as The Salvos and the SES – who maintained a number of kitchens and driver services in the area over the duration of the fires. We were able to drop in at any time to get refreshed before heading back out to work.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Originally posted by Monopoly:[shocked]Whoa…ARE MY EYES DECEIVING ME???? [shocked]
WELCOME BACK KAY!!! [biggrin]
Hear, hear – welcome back Kay.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi Paul,
I suggest you visit here and play with some numbers.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi Gia,
And getting finance on a ‘hotel room’ is usually not a standard 80% lend. More oftern than not you need to put in more equity (% wise) than you otherwise would.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi Jen,
Not allowed to seek funds here.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi Jenny,
I prefer to look at my portfolio rather than individual properties and as such it sounds as if you have a reasonable balance.
Growth property and a few cf+ to kepp the accumulation process going.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi Steve,
Give Julia a try at http://www.bantacs.com.au and/or PM her under her username ‘Julia’
Julia regularly posts here and a search by her username will show you her depth of knowledge.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi Hippo,
Jan Somers comments are all about making your taxation easier and to have your dollars working more effectively.
Under the current arrangement your repayments are apportioned over the $190K – in essence this means both your loans are decreasing in value. This is not a bad thing but you would be far better off splitting the loans into two parts – $40K for PPOR and having this as a P & I loan and the second part of $150K and having this as I/O.
I would also link an 100% offset deposit account to your PPOR loans so that all of your spare money and income helps further reduce your non-deductible PPOR interest.
Such an arrangement also makes it nice and clean for accountants, ATO and your peace of mind.
However under the current mixed structure you have approx 21% (40/190) of the interest is non-deductible and 79% (150/190) is deductible.
These portions will remain for as long as you have this structure in place. Even if you inherited $10K you cannot say ‘I’ll use that $10K to put towards my home’ it is apportioned over the whole loan in a 21/79 split.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi Bradles,
I am of the opinion that a seminar needs to be somewhat aligned with your investment philosophy. For example there is little benefit in me attending a wrapping seminar as it is not a strategy I see myself employing.
Of course the ‘fip side’ of that comment is you don’t know what you don’t know. But I would still prefer to bed down a strategy before diversifying otherwise it is possible to send 000’s of dollars on seminars, burning lots of cash and doing nothing.
As for Steve Navra’s seminar – it is more a wholistic workshop and gave me a broad overview of how I could put together a property portfolio. There is a lot of Peter Spann theory (from my reading of Peter’s books) in Steve’s seminar – well for me there was.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi Jess,
I believe that you have a ‘delete’ button at the top right of your post. I may be wrong because as moderator ‘I do’ – however my vague memory said there is a delete button there too.
Failing that do an ‘edit’ and delete all your text and the repost with nothing. A moderator will come along at some stage and delete the empty post then anyway.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Originally posted by globe:I’m also finishing full time employment in June and as yet have no guaranteed work to walk into.
Hi Globe,
At this stage I wonder if this issue isn’t more important.
Given that there may be a period of time when you are without an income is the current loan in ‘credit’ and/or do you have the capacity to ‘stop payments’ between jobs. Switching to an interest only loan may create some issues here.
The need to reduce your outgoings also needs to be balanced with the possible loss of income.
As I am not a broker and do not know the ‘ins and outs’ of the state of play with respect to these issues maybe this is something a broker could provide some thoughts on.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi admin,
Shouldn’t this ‘disclaimer’ post be a sticky?
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi Jack,
Recommend you search the ‘heads up’ and ‘opinionated’ forums for previous discussions on RK.
There are many who are grateful for his initial impetus. Equally there are others who find him repetitive and light on substance.I many repects it is a case of ‘if it works for you’ – why not? If it doesn’t then look elsewhere.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
Hi Zippys,
Aside for their limited growth prospects you need to carefully check the size of the apartment.
Anything under 50 sqm creates real headaches for you as an investor. Lenders do not like doing standard lends on them and as such these types of properties can eat into your savings or equity a little quicker than they should.
You will also need to check to see how the projected returns are calculated. Does the property (or similar ones in the area) have a history of achieving the stated returns? The last thing you need is to be left with a vacant lemon that cannot be sold.
These properties are really niche properties that suit a particular type of investor – someone with high equity levels and in need of an income stream.
I also suggest you do a search (top left) using studio apartments, serviced apartments or apartments as you’ll get a fairly extensive list of previous discussions.
Derek
derekjones1@bigpond.comProperty Investment Support Available.
