Forum Replies Created
“Secrets of Property Millionaires Exposed”
by Dale Beaumonthttp://www.secretsexposed.com.au
Purchased it on-line after seeing it mentioned by Michael Yardney
Includes sections by various names that I had heard of eg. Ed Chan, Dymphna Boholt, Jakobi (Can’t remember the rest. Don’t have the book with me)I’m not related to them but just liked the idea of an Australian book talking about the local environment.
Tony
I work nearby and (externally) the building looks nearly completed.
It is a great location along St. Kilda road; near Albert Park Lake (Could probably see the Grand Prix in March); tram into the city.
The harder questions relate to whether it would be a good investment or not.
I would like to live there but probably wouldn’t want to own one. (My opinion only)
Tony
If I was in your situation I would be looking at renting an apartment in Southbank/City to take advantage of being close to your work and babysitters. (Petrol is expensive. You wouldn’t have to use the car at all)
That apartment market being what it is, you should be able to rent a great apartment at a very good price.I would avoid the West as the West Gate Freeway/bridge is a bad bottleneck with accidents nearly every day that impact commute times.
Use your money to buy an IP (not an apartment) in a nice area.
Or save up for when you have to leave the city for schooling for your child possibly.My opinions only.
Tony
I saw a brochure in an Agents office about this:
http://www.rentalrewards.com.au/Don’t know much about it tho.
Interesting idea.
The question might come down to “Who will lend money to me to buy one of these?”
Aren’t banks not too keen to lend when the square meterage gets under say 50sqm?Hello Passion,
I am in a similar position and asked similar questions in this post:
https://www.propertyinvesting.com/forum/topic/18339.htmlI don’t want to have to sell to get my hands on the profit.
Bank West 6% info here:
http://www.abetterdeal.com.au/TeleNet_Saver/index.aspRate is INTRODUCTORY.
Standard rate is 5.25%Megan, Thanks again for your advise.
My exit strategy would be to (ideally) develop and hold for the long term.Which brings me to TMAs post. My wife wants the final result to be the elimination/reduction of the loan on our PPOR. As TMA says, this is a “comfort” thing that I am trying to accommodate while also building an IP portfolio.
I have another IP (our first)
My wife sees the additional debt.
The IP produces cashflow through our bank which offsets our PPOR loan, so it is assisting with our mortgage.Tony
I have just received mine about 2 weeks after putting in the application.
1. Filled in the form online at
http://www.passports.gov.au2. Got some passport photos done
3. Went to the Post office for the interview and pay the money $153
You can pay an extra $65 to get it in 2 working days4. Tracked the progress of the application online
5. Postman delivered it Registered Post
Very easy. The hard part is gathering all the required docs that Lee mentioned above.
Tony
Thanks for your replies Terry & Megan.
So basically all I can do would be to have a split loan over the IP. Part would be be tax deductible and used for IP/investment purposes only. (To pay for the development mostly)
The other part would be for private use and NOT tax deductible BUT I would be paying interest on the money that I use but NO income tax.I want to pursue the development to be able to DECREASE the loan on my PPOR. If I do the above I am just shifting the loan and still paying interest.
Sounds like the develop, sell & pay tax route is the best. Can this be true????
Thought No.2
How about developing it (in my name) and then selling to another entity (Family trust) for the bank valuation??
I would still pay personal tax, but would retain ownership on the IP in my trust. Would this be legal and beneficial??Megan, I would be interested to here more about the “other ways to legally and legitimately minimise the non-deductible interest.”
Thanks,
TonyDA = Development Approval
ie. Gathering all the paperwork necessary ( from the council etc) to allow you to build. eg. planning permit
Plenty of costs involved to surveyors, council, architects etc.Just my basic understanding.
