Thanks for your reply Shel,So could I arrange for this sort of thing(but with title on property) so for my name to be on the IP(only) and then with the PPOR her name only and she can then claim the FHOG????Chris.

hmm, do you have to stay in your property for one year, i thought it was 6 months, better check out i think the ato website for clarification(well in nsw its live in for constant 6 months in the first 12 months).

Jayro wrote:
I'm still lost for words a little over Chris' sister. Geeze, $46k. PLEASE tell me that includes a honeymoon in there somewhere atleast???  Mate at least you and your Girlfriend are on the same level. Thats the important part.

Umm, I don't know if there is a honeymoon in there, but they are going away to the gold coast for 3…[Read more]

elkam wrote:
You need to calculate about 20% of the yearly rental for expenses (repairs, insurances, rates, water, agents fees, vacancies etc.).  This does not include the interest on your loan. However, don't forget that all this is tax deductible, including the interest on the loan.[/quote] I keep on reading this 20% expenses alot. Does that…[Read more]

I agree totally with what everyone is saying, my sister is going to get married janurary 2008(shes been engaged for 2 years), and well my parents said they would pay 15K, her fiances parents are paying 5K, so thats 20K that they dont have to fork out, but they still are forking out an extra 26K aswell. This is unreasonable 46K for a wedding, come…[Read more]

Thanks for your reply Terry,What I said about the CGT 50% thingy was exactly what you meant but I didn't write it in very clear words.i'll have a look to see if i can find some ruling or something with details, and the like.Thanks,Chris.

devo76 wrote:
I love crunching numbers. I have a calculator sitting next to me at home. The wife thinks ive lost it. Ill see a property and go through a bunch of WHAT IFS. Seing if its viable or what a reno will do. It helps hone your skills i think.

We are very similar, I have my calculator sitting next to me too, I love crunching numbers.Chris.

Thank you Marc, your perspective has given me something to think about.If I can get early access to the property I could do minor reno, e.g. paint. Then move in a tenant.This will make me a buy and hold investor, I don't like the sound of that, but if moving into a house and doing a 6 month reno and not really guaranteeing the returns i'm after…[Read more]

Thanks for your help Marc, greatly appreciated,Ok I have now crunched the those numbers, and re-crunched em. Here they are;Purchase price: $200,000Closing costs(6%): $12,000Deposit: $32,000Renovation costs added to loan: $20,000Loan amount: $200,000LVR 100LMI(2.5%): $5,000New Loan amount: $205,000Holding costs for 6 months(including rates, i…[Read more]

Hmm, thanks Marc for your reply I didn't see your message.Ok Marc in my number crunching I have revised it a little but not yet to what you mentioned. I did not allow for holding costs during the 6 months, which turns out to be 7K(just like the FHOG). Now as it will be my PPOR(for the 6months) would the 6% on top of purchase price hold, I don't…[Read more]

I agree with v8Ghia and Cameron, forget about the FHOG, you have to pay stamp duty so just pay it. Get income insurance(if not already) and just accept that over the next few years you may have to go back to work. With that said enjoy your home and I wish you the best of luck with your purchase.Chris.

This is a real tough one, I can see where your coming from Fiona, and also where some other people are coming from with the risk.Well you've got insurance with your husbands job, so no need worrying to much about that. You might have to take up a small part-time weekend job to get a little more income(note:you pay small tax on this as you'll have…[Read more]

Hmm, with the capital gains, I have tried to be conservative with 6%, is that conservative. I know the market has "averaged" i think 10% for tonnes of years, I've dropped this incase the market doesn't perform as expected. Do you think its to high?I need to fix up some of the things, there are 2 possible cases, I buy and live in house ofr 6months…[Read more]

Well I know certain numbers just by experience on this forum. As I am currently at uni and am not going to buy an IP until late 2009-early 2010, I have just been looking/posting on this forum and checking out sites like realestate.com, I've just been researching I guess. Well when you buy an IP you have the purchase price, but then there are also…[Read more]

Thanks Marc and Joel. I can't believe I didn't look at comparative sales, that should enable me to keep an eye on the value and keep those formulas in check.Thanks again,Chris.

v8ghia wrote:
( wonder how 'wrappers' would go that long eh?)

What did you mean by this comment? I'm interested in wraps.

Thanks TheBish for the comment about the planning website. There we go more due diligence tools at my disposal.Chris.

For further acquisition of Ips you can access the increased equity of your PPOR and IP. Thus not needing a cash deposit. You can use the equity from the PPOR and make the entire new IP(an your first one) interest deductable, the whole value. You will have some cash then lying around(40K) decreasing your non-deductable debt.You keep on doing this,…[Read more]

Your credit card is maxed, maybe consolidate that into your loan. That credit debt may be the thing thats stopping you.Why is your credit maxed?? Its bad debt, why have you let it max out. Chris.

I feel the strategy should be lay back. Pay down the loans for now. Relax, look for deals. Once the equity starts building(your deposit) then you can get in quick to get a good deal.Don't just do a deal for the sake of it. Do it to make money, find a bargain. Having good finance is part of getting a good deal/bargain.Chris.