Forum Replies Created
Hi Robo,
We went for a solar system with electric booster which is on ‘Smart Power’. This means we can flick the power on after 9 pm ready for the morning showers when our tariff is 6c/unit instead of peak rate of 18c/unit.
We have found that there is generally enough heat still left in the water at the end of the day when teh youngest daughter showers. The solar is sufficent for us for approximately 6 months of the year when no power boost is required. Another 3 months we intermittently use power boost and even in winter we have been known to have sufficient sunshine for our hot water needs.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Vernon,
I use pAtrick Thatcher or RMG accounting. Suits me and my circumstances. Also suggest a search of the forum (top left under forum boards) to see what others say. There have been a few recommends over time.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958HI Shelley,
The ATO website also a booklet that explores a great many issues associated with CGT. Do a search and download the pdf file. If you need a hand send me an email and I’ll send you a copy by return mail.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Shade,
Just picked this one up.
For what it is worth your current LVR is around 90% of the value of the property and as such you don’t have a great deal of equity to play with.
My first recommendation would be to sit down with a broker to see what the best course of action is with respect to ‘getting the next one’. They would be able to ascertain your current borrowing capacity and provide some direction about the best use of any surplus funds in the meantime.
Certainly an offset account is the best place to park spare cash and maintain your current repayments until you get to a situation where you have sufficient deposit or equity for IP no 2. Parking cash in an offset account and maintaining repayments will reduce your principle a little quicker as your monthly interest bill will be reduced.
Above all – see a broker = step 1.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Mandurah WA
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi eecchhoo,
For me the more important consideration is the amount the respective lenders are prepared to lend you based on your current situation.
Different lenders have different rules and ceilings and as such you may be better off, in the longer term, with another lender who will loan more.
Having said that I am not familiar with the ‘ins and outs’ of the different lenders and this is where a good broker will be invaluable to you.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Robo,
They were quoted in May SMH as saying “The forecaster has based its predictions on expectations the standard variable home loan rate will rise to as high as 9 per cent by the second half of next year, from 7.3 per cent now.”
It seems in 4 months they have significantly scaled their prediction back.
If anyone is worried about their interest rate exposure – three year fixed rates have recently come down. Three years of security of repayments may be significant SANF for some investors.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958HI Shelley,
Taxable gains are added to your ‘normal’ income and taxed at the prevailing rate.
Issues such as capital costs, building depreciation, selling costs, period of ownership all come into play when finalising your bill.
As a rule if you do sell – stagger and if possible sell in a no or low income year to minimise tax.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Shelley,
There are other lenders around – I would recommend a chat to a savvy broker. I am sure that they could help – even if it means looking at non-standard loans and lenders. Obviously you would need to apply your own checks and balances to ensure affordability etc.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi chris,
Give one of the regular brokers here a call. They may be able to help.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Milly,
As the solicitor has acknowledged that you are due for a stamp duty refund then I would follow the conversation with a simple letter.
This way there is a written record that they will be providing you with a refund. Keep it simple. Stage one is to get the refund.
Stage two is to hit them for a refund of their fees they received for a task they didn’t complete complete correctly. Do this in writing too.
After this is all done then you will have a written record that the solicitor mucked up and this documentation may well provide centrelink with sufficient evidence that your father did endeavour to reduce his assets below the veteran’s threshold level.
At the same time you will need to address the issue of the loan. Without knowing the details I cannot see how you were provided with the money when your name wasn’t on the title – I am sure a learned broker will come along and answer this for you.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Milly,
As your solicitor is claiming that the stamp duty has been paid ask them for the receipt details and/or follow the matter up with the relevant authority in the state concerned.
If the stamp duty has been paid it would indicate (to my laymans way of thinking) that the solicitor is at fault here.
I would also be following the matter up (in writing) with both the broker and solicitor. Do not rely on memory of phone calls – but if you do need to make a phone call then diarise the conversation immediately thereafter and before you do anything else. It would also be advisable to paraphrase your jottings and read them back to the person with whom you are speaking and get them to confirm your record as being accurate.
Depending uo the outcome of these conversations and communications it may be appropriate to follow the matter up with the relevant governing bodies in your state.
What has your brother found out? It would seem that you are both being short changed here and he also needs to get on the case – after all two heads are better than one in situations like these.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi all,
I did the Navra course two/three years ago when it was last in Perth. It was a two day course then.
I would recommend it to anyone who wants to get another perspective on investing with a multi pronged approach.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Originally posted by Shelley D.:We have 2 IP plus 1 PPR. Next property we would like to buy it in a trust or something else. Trouble is, I don’t know much about how they work and the tax benefits. Can you suggest the best way to study how they work – books etc?
Hi Shelley,
Not Matt – but you may like to have a read of Dale Gatherum-Goss’ ‘Trust Magic’. It is available at http://www.gatherumgoss.com and then follow the ‘shopping’ link.
Well set out and ample room for notes.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Originally posted by WASP:I know you could go lo-doc as well, with a slightly higher interest rate, but a 1% increase on a 5% loan is costing you about 20% more for your money[blink].
Wasp
Hi Wasp,
Sometimes the additional percentage rate is worth the expense. In some respects it is a little like LMI or not questions.
If the extra cost of the borrowings means you are closer to realising your goals (and you do not over extend) – is that not a good thing?
Sometimes we lose sight of the bigger picture – what is that saying? – something about trees and wood?
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Alysha,
The key question for me is what outcome were you wanting from this purchase? Has the property done the job you wanted it too? What would you do with the funds if you got out now? Is the property affordable for you?
To me these are critical to your decision making process.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi all,
When I last did the Steve Navra course 3 years ago the bank he used, as per Terry’s example, to increase serviceability was one of the big four.
Lending the additional funds was never an issue as the bank in question fully understood the ‘Navra approach’ and saw risk levels that were in keeping with their guidelines. They were comfortable that the investors were fully conversant with the cashbond approach, had substantial high quality advisors working with them, that the investors were growth focussed and could sustain their commitments over the investment timeframe.
Using Navra’s rental reality formula an investor is able to determine when property reflects value for money, thereby increasing the likelihood of success.
So buy using an additional borrowing capacity of $580K to buy a high growth/undervalued property would give an investor the capacity to considerably expand their investment portfolio. So, for a big picture investor, the cost of 3% would be largely inconsequential in the grand scheme of things.
This approach is certainly not one that every investor could use, nor is it one I am using at the moment, but it is certainly one that I could access into the future if I so chose.
If this moment in time were to arise the first thing I would be doing is jumping on a Sydney bound plane and making an appointment with one of Navra’s advisers to tease out the detail.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi GCG,
In his most recent property report Michael Matusik has some interesting Brisbane figures at hand; namely property is currently undersupplied by the equivalent of thre emonths supply, the job creation rate continues to be steady (and highish), population growth continues to be one of the highest in percentage terms (and almost in raw terms) of all capital cities in Australia and the vacancy rate in all properties is 2.7%.
While these are figures for Brisbane I would be surprised if the Gold Coast figures are not similar.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Mitm,
You did say “holiday apartment” so I am assuming you are talking something with a few floors. If so investigate body corporate costs – they can be very expensive and make a good gross return not so fancy as net figures.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Zen,
City council rates are obtainable from the City Council and Water Authority Rates from WAWA. This will give you an exact set of figures for you to work from – as a ball park you could allow $650 each here.
If the property is strata titled then body corporate fees will be available from the strata manager.
For property management fees allow around 10% which will give you a ball park figure of around $1000/annum – the real figure in Perth will be slightly higher than this unless you can negotiate management fees down a fair way.
Repairs and maintenance are an unknown quantity – but given the property is 25 years old these could be significant. Your depreciation claims will be severely restricted uless there have been signifcant additions made since 18/7/1985.
Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958
