Forum Replies Created
Hi Mikey,
Suggest you do a search on the forum as Kal and Kambalda do come up from time to time.
Search facility is located under the forums button at the top of the page (left hand side).
Give me the security of large cities any day – even if I have to put a little bit in.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Originally posted by zerotax:It is interest capatized knowing that this portion of the loan is not tax effective (usually a different split on the loan), therefore pumping all rent/income into princple place of residence. I have taken my leverage on my home from 80% to 20 % in 3 years.
Isn’t this a smoke and mrrors trick to a certain extent.
While I can see that your direct home debt has reduced but have you really reduced your non-deductible debt to the full extent claimed.
The reason I ask this is that the capitalised interest debt (which is non-deductible) has grown commensurately with the amount of rent being pumped into the PPOR.
I did some sums for my own situation (along similar lines to what it seems you are doing here) and the ‘on the surface benefits’ looked OK – but only OK due to the ever increasing non claimable capitalised interest.
Would really appreciate some detailed explanation of the process with real figures before I am convinced that this is so good.
If you are looking to find a structure (not just a property) then you can’t beat this company. No red flags here!!!!!!!!
Maybe not – but my red flag goes up when someone becomes a member on a forum such as this and on their first day make glowing references to a company that has served them well on their only post.
Unfortunately we see this all too often. Certainly creates scepticism in me.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Originally posted by zerotax:It is interest capatized knowing that this portion of the loan is not tax effective (usually a different split on the loan), therefore pumping all rent/income into princple place of residence. I have taken my leverage on my home from 80% to 20 % in 3 years.
Isn’t this a smoke and mrrors trick to a certain extent.
While I can see that your direct home debt has reduced but have you really reduced your non-deductible debt to the full extent claimed.
The reason I ask this is that the capitalised interest debt (which is non-deductible) has grown commensurately with the amount of rent being pumped into the PPOR.
I did some sums for my own situation (along similar lines to what it seems you are doing here) and the ‘on the surface benefits’ looked OK – but only OK due to the ever increasing non claimable capitalised interest.
Would really appreciate some detailed explanation of the process with real figures before I am convinced that this is so good.
If you are looking to find a structure (not just a property) then you can’t beat this company. No red flags here!!!!!!!!
Maybe not – but my red flag goes up when someone becomes a member on a forum such as this and on their first day make glowing references to a company that has served them well on their only post.
Unfortunately we see this all too often. Certainly creates scepticism in me.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Muppet,
We all did – you are too late. We each received US$9m and did not leave anything for you. Unlike the other scams around the place this one was legitimate.
All of us have now stopped buying IPs and are only logging on when we find time.
In between sunbathing on a remote island in the middle of the Pacific. Log on subject to satellite services, bar service and the obligiatory martini at the pool side bar.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Originally posted by PHILandGEN98:I know what i want.
Well don’t ask then.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Originally posted by Dougiejg:So any great ideas on how to find and remove the possum and/or the smell before the owners move in about May?
Hi Doug,
If you are the junior do you want to find it?
Guess who will be required to remove it.[biggrin]
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Ooops[biggrin]
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Steve,
I did not hear the buletin or read the article you refer to but I caught this article on the web that may go part way to reaffirming (at least in part) what you heard. From todays Herald Sun
Property is still fizzing
By TONY RINDFLEISCH
05feb06PROPERTY prices in most Melbourne suburbs have risen since the peak of the last real estate boom, Real Estate Institute of Victoria figures show.
Analysis of 220 suburbs with more than 30 sales in comparable December quarters has found prices have declined in only 16 suburbs since the peak of the five-year boom in late 2003.
This is good news for most home owners and disproves the widely held belief prices have been falling since the peak.
The REIV figures show that in a flat market, blue-ribbon, inner-city suburbs perform best.
Toorak, with a $1.98 million median house price — 75 per cent more than December 2003 — shows the greatest price growth.
Toorak, Brighton, Hawthorn East, South Yarra and Canterbury are the top five performers.
Property adviser Monique Wakelin said the statistics proved that even when the market was subdued, premier locations did well.
“These suburbs are within 12km of the city,” Ms Wakelin said.
“We have consistently said if you buy the right property in the right location it will not only hold its value during a plateau or moderate downturn, but the really good areas will continue to grow in value through a plateau.”
REIV chief executive Enzo Raimondo said the figures reflected Melbourne’s “soft landing” of property prices.
Low inflation and unemployment had supported the market.
Suburbs showing price falls included Footscray West, Newport and Donvale, as well as Surrey Hills and Williamstown.
Ms Wakelin suggested Surrey Hills’ comparative lack of diversity, and resales of new developments in Williamstown could explain the data.
++++++++++++++++++++++++++++++++++++++++++++++++++++Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Wait a couple more days and the blowflies will lead you there.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Assuming your taxable income is $44K then you will pay $9060 in tax.
If you buy the property and it is cashflow positive and now makes your taxable income $45K then you will now pay $9360 in tax.
In a nutshell the taxman takes away an additional $300 from you at this income level.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Angel,
I suggest you read through some of the finance threads as there are a few Victorian brokers down that way who will give good comment. In no particular order (and apologies to those I miss) you could try some of the following nicks mobile mortgage, stuart weymss and mortgageman. Then of course there are those a little further afield.
You may also want to read the following thread – it may not be the best but it may also get your mind turning over to the possibilities.
https://www.propertyinvesting.com/forum/topic/21767.html
Of course a 100% loan will (if you can get it) come at a cost. However depending upon your situation the cost may be well worth it.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Insan,
My reading of this page had a little alarm bell go off
http://www.canterburyservices.com.au/step_one.html
It seems to me they are advocating capitalising interest – which there is still some doubt about in terms of tax deductibility. Maybe wrong but someone else may like to comment.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Insan,
My reading of this page had a little alarm bell go off
http://www.canterburyservices.com.au/step_one.html
It seems to me they are advocating capitalising interest – which there is still some doubt about in terms of tax deductibility. Maybe wrong but someone else may like to comment.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Angel,
Some lenders are doing 100% lends under certain situations and within certain guidelines. It may be worth having a chat to some of the experienced brokers here.
PS – I will delete the other thread you started so we can keep conversations on this topic in the one area. Keeps it easier for other readers.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Michael,
I couldn’t get the link to work – have added it here.
http://htw.com.au/pages/info_centre/review/MR%20Feb%202006.pdf
Good resource though.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Phil,
Why are you selling your home?
You could leverage off the security available to invest anyway.
Assume you do proceed with the sale it really is only you that can determined which direction you should take.
Initially you do need to establish what you are trying to achieve via property investment.
What are your timelines?
What skills and/or knowledge do you possess that will assist you to succeed?
Are there any impending major changes in your life that could impact on your plans?
Do you have a fall back position?
How much can you afford to borrow?
How old are you?
What are your partners thoughts?
Are their factors in your personal makeup that will naturally steer you in a certain direction?
………………… and so on.All of these matters (and others) need careful consideration and will largely help you to determine where you should go.
For example – while I possess reasonable handyman skills and have done some renovations in the past I could never take on renovating fulltime as I find, despite the rewards, it wearisome and onerous.
I could never buy a block of units and live in one while tenants live others. Too close for me.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Ezrent,
A comment you may want to take on board (FWIIW) – have you considered renaming your calculators eg.
Ezrent Version XYZ – 0506 Financial Year
This may make it easier for joe public.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Spoodle,
From this website
http://www.fairtrading.nsw.gov.au/realestaterenting/buyingselling/buyingprocess.html
At the time of the exchange (of contracts) you will be required to pay a deposit, usually 10% of the purchase price. Following exchange, you have a financial interest in the property so it’s wise to get it insured.
Note it says usually – not must be.
You could also contact the Office of Fair Trading on 9895 0297.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Steve,
What is it that attracts you to DHA?
If it is the security of tenancy then be aware that as the buyers are leaving the market the vacancy rates are dropping in many places including Ipswich. As such a good PM will be a valuable ally in securing tenants in an ongoing basis.
Sure the worries about no tenant are real – but in the longer term picture these pale into insignificance and there are steps you can take to minimise any impact from these times.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi 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 arrange their own valuation despite these steps being taken.
And they say valuations are researched and consistent. [bigeyes]
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
