Forum Replies Created
Hi Dave,
Not sure of your whole situation but you really have two options. Do the maths to see which one works for you.
1. Stay wear you are and wear the costs.
2. Pay the costs and move on.If you cannot do option 2 then I would suggest your only option is 'learn the lesson' and carry on. Worst case scenario is you know what your commitments are for the balance of your fixed loan and can budget accordingly.
I tend to have half of my portfolio fixed at any one time. This seems (and I use that word deliberately) to give me the best of both worlds.
If I go back and analyse my overall strike rate I am probably batting around 50% – half the time I have come out in front and the half not so good. In saying that I have been able to focus on a bigger picture without worrying about what the RBA does each month.
EDIT – I know someone who claims to take 10yr fixed rate each and every time they buy a property. Mind you he is very commercial in his property investments. His reason "I do the maths, lock in contracts and set and forget" – seems to work for him.
in my opinion you are over-exposed in a 'smaller. mining town'
Places like Emerald may be OK for one property as a complement to the remainder of your portfolio but, for me, not a place to have your whole portfolio. That is not necessarily a knock on Emerald rather a knock on an aspect of your strategy to date.
newbiebeginner wrote:if anyone out there has had anything to do with NRAS and if its a better option than simply an investment property of our choice.Hi Newbie,
Whatever you end up doing make sure the fundamentals of the property are good and are consistent with your investment goals.
NRAS properties are often sold on the tax benefits and you need to look beyond these to make sure the deal stacks up – yes the taxation benefits are quantifiable but keep your eyes wide open.
Developers, NRAS marketers etc are all making good profits on these properties. If you do go down this pathway make sure you get what you want.
Backing up an earlier comment by Keiko about the media focus.
Yesterday we had a fall in the ASX of approx 1.8% (I am not a share investor so I don't know the exact figure) and we had major & large print headlines talking about $24b being wiped off the value of shares.
Fast forward almost 25 hours and the share market has recovered 1.5% (4.45pm on Tuesday) and barely a mention of the recovery in popular online media.
Methinks we would be a better place without such a negative focus by media channels.
Now back on topic.
Yes you can – the QS report generally covers a 40 year timeframe of the balance thereof.
In your case don't submit your tax return until you have your QS report.
If you have previously submitted a tax return without a QS report get your accountant to amend your previous returns. You have two years (from date of submission) to make any amendments to a previously submitted tax return.
Qlds007 wrote:an unecumbered home.Yep that is the only advantage I see. Non-deductible debt will remain albeit 'hidden' in a second loan against refinanced IP.
As an afterthought – if you are going down this pathway lake sure you split your new loans so the 'PPOR' component is clearly distinguished from the IP component. Make things much cleaner for tax purposes.
All you are doing is 'shifting the debt' – no advantage other than an unencumbered home.
On paper you may have paid the home off but the debt remains.
Yep!
Bear in mind your depreciation report will last for 40 years (or the balance thereof) if it is a new residential property.
Hi PF,
A QS report takes about 6 weeks to prepare – depending where it is. A property in a more remote locality may take a little time to get organised unless you want to pay through the nose for a one off inspection.
In many cases the QS will wait until after settlement as they like to use stamp duty figures etc to assist with their report compilation.
Be worth a phone call or two to see what the company you are using does.The QS report has no immediate impact on your tax benefits unless you use the information to complete a PAYG tax variation in which case you can use the data when completing your form.
If the property is reasonably old then the QS report may realise negligible gains, in which case you may wish to complete the PAYG based on other costs such as interest, rates, etc.
Further to my previous comments I caught this article online article.
Now I appreciate central Melbourne is not the eastern suburbs but there is a possibility of a knock-on effect flowing through to some of the outer burbs.
mattsta wrote:If it were me though, I’d invest somewhere in Melbourne, preferably the east side
Why's that ? Melbourne would be amongst the last places I'd be looking at the moment. Seems to have overshot the market in recent years, rental vacancy rate heading north when I last looked, inner city over-supply looming when I last looked and a raft of economic indicators showing the Victorian economy is struggling at the moment.
Check this http://www.theage.com.au/business/victoria-takes-a-battering-20120601-1zng5.html
Small towns increase your level of risk. Make sure you increase the amount of research done if you are looking at smaller towns.
Entry level in Port & South Hedland is very high.
BHPs outer port construction has received final approval and will move into construction mode. Hedland council is currently undergoing a major zoning/planning review of all land in the South Hedland area.
If I was in your shoes I would go with Terry's suggestion.
Whichever option you choose just make sure you do not over extend yourself. Interest rates are set at pretty low levels at the moment.
When doing your sums make sure you factor rate increases into your household budget.
Hi Steve,
Give Deppro a call – they do have a Perth Office. http://www.deppro.com.au = there will be other companies try google search.
HI WI,
Century 21 Safety Bay manage my property in Rockingham. T: 9527 3300
Solid, not spectacular, but might be worth a call.
You need to find out how the $30K is funded and where it is coming from.
Until you know that all is pure speculation.
wendywoo wrote:What are the questions I should be asking myself to work out more clearly what I want to achieve?Hi Wendy,
A key question you may wish to answer is, '"How you intend to use the properties in your 'retirement'"
Very basically and simplistically if you see yourself living off rent then you need to focus on cashflow. If, on the other hand, you intend to strategically sell down and live of the proceeds of a sale then capital growth should be your preferred strategy.
Clearly what I have said is rather 'basic' and there are many nuances to the two core strategies but that may give you some food for thought.
Hi Wake,
If you have $30K sitting around I would suggest you plonk it in an offset account linked to your home loan while you work out the next phase of your journey.
The key issue you'll need to address is your apparent limited equity – sometimes there is a time to wait while growth occurs and equity is released. You may be at that stage.
I suggest you chat with Richard to see whether or not you are in a position to look for IP No 2.
Hi Jim,
Is there any particular reason he has only saved $5K at the age of 48?
This may sound harsh and without knowing the 'ins and outs' of your mates position I may well be totally off the mark. If so apologies in advance.
Based on the limited information provided the first question your mate needs to ask himself is – does he have the financial nous and management processes and habits in place to be a homeowner?
