Forum Replies Created
Hi Xon,
All our IP loans are I/O. When the PPOR loan is paid out (or had a big hit) we will reconsider our options then – but for now all I/O.
The other thing you can consider is take out the loans as I/O and then, if the time is right and it suits you, you can make additional payments so that you get stuck into debt level.
I/O provides you with the option – whereas P & I contract generally doesn’t.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Stombiz,
The only other comment I would make is that, based on my observations, it seems that the builder’s display homes are generally located on the busiest street in the subdivision, often at the main entrance and as such traffic noise could be an issue for resale purposes.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Julie,
Here is the other thread that Jo is referring to. I’ll lock this to keep the board ‘tidy’
https://www.propertyinvesting.com/forum/topic/13242.html
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Stephen,
As a rule of thumb most financial advisors earn an income from peddling managed funds and as such will generally steer you away from property anyway.
Where you live and your preparedness to travel, or consult, from afar could impact on suggestions given. You may find the answers and suggestions given more productive if you identify where you live.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Tony,
The REINSW (or whatever they call themselves) may be your best option.
You may well find that the number of agencies is relatively the same, apart from buyouts etc, whereas the number of agents may have diminished somewhat.
Real Estate seems to have a high turnover rate and as such accurate figures may be difficult to determine.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Originally posted by geo:Since your borrowing against your current property, you may be able to use some from that for tax deductions.
Hi Geo,
Just clarifying for Nessa.
If the purpose for the new loan/refinance is to buy a new home then this will not be allowed as a deductible expense.
If however the new loan is for investment purposed then the interest will be a deductible expense.
A lot of people mistakenly believe that if a loan is secured against an investment property then the interest is deductible. The ‘test’ is whether or not the loan is for investment purposes.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
HI Kim,
Going to lock this thread and refer people to the thread in the correct forum ‘heads up’ so that the community stays ‘tidy’
https://www.propertyinvesting.com/forum/topic/13215.html
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi yuyu,
I have seen them $450 upwards and some firms will guarantee that they will find more to claim in your report than the fee.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Lostkiwi,
There are a number of brokers who regularly post here. I cannot speak from personal experience but others have made positive comments about them and their service.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Tuppence,
A couple of quick things come to my attention the website is copyrighted 2003 which suggests they haven’t been in business long and, unless things have changed in the last two years I am not sure that Jan Somers would like her story on the website – Jan and Ian were passionate about not being seen to support or endorse any group or organisation.
Some thoughts for you to consider.
1. How long have Domain been in business?
2. How many investment properties does your ‘consultant’ own?
3. How long has your consultant been investing?
4. How does your ‘consultant’ earn their money?
5. What will they get out of each and every purchase?
6. What service do they offer?
7. How much does it cost to use each aspect of their operations?
8. Can you use your own mortgage lender? property manager? valuer? If not – why not (it is a free world)?
9. What sort of after sales support do you get?
10. Does their approach fit comfortably with you?
11. How much pressure is bought to bear?
12. Are all decisions made in Domains’s presence?
13. Are there rent guarantees? (Investigate thoroughly – if there are!)
14. How does the price compare to similar properties on the open market?
15. ASIC/ Ministry of Fair Trading Issues?
16. Where have Domain’s past sales been? What were they? How much is the open market paying for them now? What are they rented for now?
17. What are similar properties (to the one being considered) renting for? Check with a couple of REA in the area?
18. What is the vacancy rate in the area like?
19. What infrastructure is planned for the area?
20. Are brochures high on ‘gloss’ and ‘glitz’ and low on facts?Just a few to get you started.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Now the Question:Should we buy another investment property or pay off the block of land first?
Any suggestions?
Does anyone know a good financial advisor in PerthHi Ksaleem,
Be aware that most financial advisors will try to sell you a managed fund as that is how they get paid. If you have your heart set on investing via property then a financial advisor (in the main) will be of little benefit.
I appreciate that you have bought the block of land for lifestyle decisions but as it currently stands it (and the house when it is built) are going to absorb a great deal of your after tax income.
You indicate that the home is fully paid off as such you should have sufficient equity levels to commence a property investment plan in accordance with your goals.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Nessa,
There is nothing wrong with what you are considering, for many property investors this is how they got started.
Be aware that you will not be able to claim any costs associated with the new property as it is considered your principle place of residence (PPOR) and all rates, taxes, interest charges etc are not deductible.
I also recommend a chat to a good broker so they set you up with a good loan structure at the beginning.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Steve made a comment at his launch the other night, that he had made far more money from capital gains, than from cashflow.A closet growth focussed investor ?[biggrin]
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Locked this thread and moved the original question to ‘Legal and Accounting Forum’
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
HI Antoinette,
Stamp Duty is a state levied tax and as such you may get a better response if you identify the state you are lookign to invest in.
WA certainly isn’t – stamp duty on property forms too large a part of the govt income. I suspect the same will be said for other states.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Julie,
Let me firstly say that I am not an accountant and as such you should check your options with your accountant before doing anything.
As Jo said anything sold within 12 months is liable for full CGT. You do need to be aware that the date of sale is not determined by the date contracts are exchanged but by the date the contracts are signed. There is a big difference and it can be costly if you ‘muck up’
Property is not considered an ‘active asset’ and as such you cannot defer CGT, as per the business model, on investment properties once a rental income has been received.
In terms of should you sell or not – I prefer to hang onto them unless, as Peter Spann says, you get an offer too good to refuse, you want to sell an underperformer and you have better places for your money.
For me the critical issue are your investment goals and to achieve this goal are you better off hanging onto or selling none, some or all of the properties.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Kay,
Funnily enough the last peak in median prices roughly coincided with the peak in interest rates and the ‘crash’ started with forced sales caused by high interest rates and rising unemployment rates.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Marty,
Definately one for an accountant who is Trust savvy – there are different Trust structures, some of which are more suitable than others.
There is an article in October 2004 edition of Australian Property Investor that may be of use to you.
Dale Gatherum-Goss wrote a book called ‘Trust Magic’ that is readale and sells for $99 and is available at http://www.gatherumgoss.com and then there is a book by Neil Renton called ‘Family Trusts’ that may be of use to you.
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
Originally posted by Brett2:I have heard people talk alot about selling of all their IP’s While the interest rates are climbing and buying when they reach their peak. What does everyone think of this stratergy?
Hi Brett,
Are you confusing prices and interest rates?
Either way this strategy is littered with high hurdles in your path.
Not only do you incur high buying and selling costs but you also need to time the market – something that even the experts find difficult to do. There were a few who sat on the sidelines in the last two years waiting for the ‘crash’ predicted in all the daily papers.
Property is not a short term investment and as such you are better off extending your time line in recognition of this.
From a strictly growth focussed point of view here are some statistics that may assist you in your deliberations.
1989 2003
Sydney $199K $474K
Melbourne $135K $361K
Brisbane $ 94K $305K
Adelaide $ 96K $222K
Perth $102K $217K
Canberra $115K $303KThis period coincided with the high interest rates of the late eighties/early nineties when housing was not very affordable and included the ‘crash’ (t’was a wimper in some places) of the early nineties and also the flat period in the mid nineties.
Hi Dom,
Steve Navra is a financial advisor who advocates maximising the use of every dollar 6 ways through rent saved through owning your own home (or part thereof), growth in your own home, rental income from investment property, growth from investment property, dividend income from shares and capital growth from shares.
In a nutshell Steve advocates growth property, selected using his criteria, which provides the leverage for other investments.
Have a look at http://www.navra.com.au/index.asp?content=schedule as there is a course coming up in Melbourne in late October. It is probably already booked out but…….
Derek
derekjones1@bigpond.comProperty Investment Support Available. Ongoing and never stopping. PM welcome.
