Forum Replies Created
Hi dags,,
I also know someone who uses the same system that Simon talks about.
He buys properties, does a reno, then has the place re-valued to use the equity as deposit on new purchase.
He does a lot of ground work, sets up a whole folio of similar houses that have sold in the area and other statistics to support his claim.
He has this all ready for when the valuer comes to do an internal valuation.
It seems to work for him, he now has many houses. They are all inner suburban houses though, that’s gotta be a huge debt.Keep smiling,
Sue [
]Be careful not step on the flowers when you’re looking at the stars
Hi Guys,
So what you’re saying is that if I am self-employed (Under 2yrs) and therefore need a lo-doc loan, I’m going to have trouble if I buy in a country area? Perhaps a higher interest rate or no finance at all?
Cheers,
Sue [
]Be careful not step on the flowers when you’re looking at the stars
Hi Pinky,
If you have 10% dep and can show to the lender that you are able to make repayments on your loan you shouldn’t need to touch your investment money. With a 10% dep I believe you would probably have to take out mortgage insurance though. And don’t forget the extras you need like stamp duty, legal fees, transfer fees, etc.
Then again, I’m blonde also, so I could be totally wrong! Some expert will jump in now and correct me if I am wrong……
Keep smiling,
Sue [
]Be careful not step on the flowers when you’re looking at the stars
Hi Arty,
I know a an investor who has his own personal property manager. This lady used to be his PA when he was working as an accountant(!), now he’s a full time investor.
She takes care of all his rentals for him, has open for inspections for rentals(!) and takes really good care of all the maintenance thats required.
Ah, one day I might have my own personal property manager……
Sue [
]Be careful not step on the flowers when you’re looking at the stars
Yes, Mortgage Hunter,
I agree with you. I think having kids can actually change your attitude. Give you the inspiration to get your life on track, make you more responsible and determined to get somewhere.Ok, when you are single, I guess you can take more risks, perhaps because you have no-one to answer to, but when you do have someone to answer to, I think it helps to keep you on your toes!
By the way, married, 4 kids,
Keeps smiling,
Sue[
]Be careful not step on the flowers when you’re looking at the stars
I agree with you, MJK
a negatively geared country prop. is not my cup of tea either.Perhaps my reply was not clear, and it was just one aspect of property investing that I was focusing on. I realise that ist is much more complicated than this one point.
What I mean’t was, with regard to interest rates rising…
If you start of with a +cashflow prop. paying 50p/w, IR rise, the repayments rise and now it COSTS you 50 p/wIf you start with a -geared prop. costing you $50 p/w, IR rise and now it costs you $150 p/w.
I hope that makes my simple point more clear,
Sue [
]Be careful not step on the flowers when you’re looking at the stars
Just a quick point,
It’s true that if interest rates rise a positive cashflow prop. could become neg. geared, depending on how much leverage you have.
However, if you start off neg. geared and interest rates rise…how negative can you afford to go?
Just a thought,
Sue[
]Be careful not step on the flowers when you’re looking at the stars
Yes, please guys,
Someone answer this question one way or the other!
Keep smiling,
Sue [
]Be careful not step on the flowers when you’re looking at the stars
Yes,vluu,
It is strange about the bank and their reluctance not allow IO loan. Can’t understand it to be honest. Bundoora has a lot going for it, prices are skyrocketing because the land is nearly all gone. I only moved here 6 months ago (Big move all the way from reservoir!) and the capital growth has been great. Didn’t realise there was a rental demand though. Still you’d need a huge deposit to make positive cashflow.
Good luck with it all,
Sue[
]Be careful not step on the flowers when you’re looking at the stars
Hi Allan,
it’s great to see such discipline and great respect for your money.
I also know people who make way more money than us and just seem to throw it all away, they never seem to have anything spare.Keep up the good work, I’m sure you’ve inspired a few people and may have scared some of them into a reality check.
Keep smiling,
(It’s Free!)Sue[
]Be careful not step on the flowers when you’re looking at the stars
Hi Arty,
I kinda like that idea! Anyone game to set it up and give it a go?
Keep smiling,
Sue[
]Be careful not step on the flowers when you’re looking at the stars
Hi Aussierogue,
Is it just the two of you?
I’m married with 4 kids, and I don’t think we even come close to 350 per week, on groceries, petrol, etc. Maybe $300 in a bad week, and I don’t think we live frugally either.
I think there is definitely some room for you to tighten the budget a little.
Just some thoughts,
Sue [
]Be careful not step on the flowers when you’re looking at the stars
Hi Kate,
If you find out about the finders fee, I’d be happy to discuss the excess properties you have found.
Good luck,
and I know I’m getting cheekier by the minute,Sue[
]Be careful not step on the flowers when you’re looking at the stars
Hi guys,
Minimogul is right with the 50% CGT if you sell.
But if you can hold on to the property for over 12 months, you only pay CGT on half your profit. The rate of tax on half your profit depends on your personal tax rate.If you live in the property for the 12 months (There has been some debate over the actual time needed here), while you renovate and then you sell, I don’t think you have to pay CGT at all.
I beleive that’s how it goes, I’m sure someone will correct me if I’m wrong.
Keep smiling,
Sue[
]Be careful not step on the flowers when you’re looking at the stars
hi Fullout,
Ring the agent and find out if she can arrange for some quotes for you. They usually have a list of maintenance people who they regularly use to do work on their rentals.
If they won’t do this for you, then as Shirley suggested, look around for another agent that will.
Painting the kitchen wall doesn’t seem to be problem, if it keeps the tennant happy. It’s not structural and you can always repaint it if you don’t like it.
Polishing the floorboards in one room shouldn’t cost a lot. Again get some quotes.
Don’ forget you rely on that tennant for income, so try to keep them happy as best you can, especially if they’ve been a goodone.
Just some ideas,
Keep smiling,Sue[
]Be careful not step on the flowers when you’re looking at the stars
My experience is that the bank keeps the original title of your property, as long as you have a mortgage over that property they keep it. I think if you default on your loan the title gives them the right to sell your property.
Once you own your property outright, you can have the title released to you. Usually there is a fee for that, of course.
That’s my take on it anyway,
Sue [
]Be careful not step on the flowers when you’re looking at the stars
Sounds like a great deal, but like yourself a little big for me at the moment…
However, if you should come across some cheaper investments that you need to pass on, send me an email atCheeky of me, I know[
]Keep smiling,
Sue [
]Be careful not step on the flowers when you’re looking at the stars
Thanks for your replies guys,
The Mortgage Industry Ombudsman has already looked at the situation (Well the girl in the office anyway) and she seemed to think there was no case.
I could try a gun-ho lawyer, but I think there was some document from the Ombudsman that said I couldn’t take the case any further after dealing with them? Could be wrong, have to look through my giant heap of paperwork about that.
A current affairs program might be fun, perhaps I’ll send them an email, wouldn’t hurt I guess.
Anyhow, thanks aghain for your comments, at least there’s some people out there who think we got a raw deal,
Keep smiling,
Sue []Be careful not step on the flowers when you’re looking at the stars
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