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  • Profile photo of DraconisVDraconisV
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    @draconisv
    Join Date: 2006
    Post Count: 319

    Well a few weeks ago I was thinking that my property would be negative cashflow. But now this is my idea.

    Buy a house around $250K, move in for 6months and claim the FHOG(and the stamp duty discount) renovate it tones(cheaply but effectively), then after the 6months move out and rent. With the renovations I will be abl;e to rent out at much higher rate than if i didn’t and that will push me into positive cashflow. This also has the added advantage of the increased equity as the renovations will add considerably to the properties value.

    I’m planning on getting a bargain(250kpurchased, but like 280K valued), then with the renovations I should be able to bring that up to around 350K+. And with my 50k deposit I will only have a 200K loan and 150K in equity.
    I know my idea may have flaws and thigns to consider, but in the years to come before i get in(hopefully less than 3) they will all be cleaned up so when i begin it’ll be all good.

    Christopher.

    Profile photo of DraconisVDraconisV
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    @draconisv
    Join Date: 2006
    Post Count: 319

    Good idea, getting the vouchers. Nice and cheap and effective.

    Win-win, excellent, i like the sound of that

    Profile photo of DraconisVDraconisV
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    @draconisv
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    Post Count: 319

    So in this settlement period can you like move in and start renovating, and start building up the required 6 months needed?

    Christopher.

    Profile photo of DraconisVDraconisV
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    @draconisv
    Join Date: 2006
    Post Count: 319

    If you already have a few investment properties with the same bank. Then they will know that you are reliable and that to keep you as a client(or whatever) they will need to lend to you, even if your income is a little low. They may slightly bend the rules for you.

    Profile photo of DraconisVDraconisV
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    @draconisv
    Join Date: 2006
    Post Count: 319
    Originally posted by TimC:

    we had a tenant once whose rent came straight out of his centrelink pay….altho we never had any dramas with him and paying rent, from talking to our property manager it isnt as good as it sounds as the tenant can just call centrelink and cancel the direct debit (as mentioned in above post) without telling anyone…kind of takes the point away from it really if they can just do that.

    Well, you could say to the tenant that if this ever happen and you find out that they are gone. Evicted, Bam.. You gotta be strict with people these days. Strict though still reasonably fair.
    The deal broken by them, so you now break the deal of keeping them as tenants.

    Christopher.

    Profile photo of DraconisVDraconisV
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    @draconisv
    Join Date: 2006
    Post Count: 319

    Cinema tickets, sounds like a very good idea. The idea(from the tenants perspective) of each week(or fortnight) going out to the movies with the landlord paying would be a very nice incentive to paying your rent on time.

    Thanks. Hmm, thats sorted for now…..

    Christopher.

    Profile photo of DraconisVDraconisV
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    @draconisv
    Join Date: 2006
    Post Count: 319

    Dam, ruins it. Hmm, now i’m going to resort back to just having the HELP debt and paying it off from my tax when I earn more money.

    Hmm, I don’t know dam…..

    You have to earn a certain amount to pay it off. Say you have no job and all your income came throught trusts(and the like) and you technically(and legally) had very little income to your name. With todays HELP(HECS whatever) rules you would never have to pay it off. But then the rules could change.

    Christopher.

    Profile photo of DraconisVDraconisV
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    @draconisv
    Join Date: 2006
    Post Count: 319

    I think I will go with the idea of borrowing off my parents and paying them back as quick as possible. With this I will pay complete upfrontand save 20%. I will easily be able to get rid of the debt as I have been paying $100 off my car for the past year and it will be paid off in 2 months, so It won’t matter to me if that money will still be leaving my pocket(though I may have to add more than 100 a week maybe like 120 or so).

    Thank you everyone for your help, it has helped put me at ease, well at least with this issue.

    Many issues to come concering property and I are in order I think.
    Everyone is helping out here with my many questions, whether they be small or gigantic or even a bit crazy. Thank you to you all.

    Regards Christopher.

    Profile photo of DraconisVDraconisV
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    @draconisv
    Join Date: 2006
    Post Count: 319

    Read books. Thats what I have been doing since I got interested in property investing(in august 06) and I have read 7 books and half way through my 8th. Crazy stuff!!..

    Reading lots of books will help tones, so much info just came to me by jsut reading. I suggest you read rich dad poor dad. Its the ultimate starting book for any property investor to be. I love it and have read the sequel and am reading the 400page se-sequel.
    Good Luck.

    Christopher.

    Profile photo of DraconisVDraconisV
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    @draconisv
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    Post Count: 319

    hmm.

    I’ve been hearing about this word ‘settlement’ a dam lot and theres like settlement periods of like 30days,6 months whatever. What does that really mean??(completely). And can it have anything to do with the FHOG.

    Christopher.

    Profile photo of DraconisVDraconisV
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    @draconisv
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    How long(IN NSW) do you need to be living in this place to get the FHOG before you can then rent it out.

    As I am planning on getting a dump and doing it up over 6months. And then i’ll be ready to rent it out.

    With the FHOG and the PPOR someone said that stamp duty costs nothing at all. ok, so with that in mind do you still get anything else. Or is it just a free stamp duty thing.

    Profile photo of DraconisVDraconisV
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    @draconisv
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    Post Count: 319

    Also i forgot to mention, that for me to pay them in full, i would need to borrow the money off my parents. So i would be saving 20% and my parents would be paying the interest as i pay it off.

    This is such a tricky situation.

    Profile photo of DraconisVDraconisV
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    @draconisv
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    Great idea DLLP. Thanks, I’ll have to ponder over those and get back to you. hmmmmm..

    Christopher.

    Profile photo of DraconisVDraconisV
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    @draconisv
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    So your suggesting I keep the money in a savings account(and save it entirely), so that i can push myself into the property market much earlier.

    My goal is to have my first IP by before i am 22, if i dont get it before im 22, I will be very dissapointed in myself.

    Profile photo of DraconisVDraconisV
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    @draconisv
    Join Date: 2006
    Post Count: 319

    Anyone, this has been driving me crazy for the past few days, someone reply.

    In need of advice, im desperate.

    Profile photo of DraconisVDraconisV
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    @draconisv
    Join Date: 2006
    Post Count: 319

    Hmm. Then what would a similar way(maybe including the rent) that could indeed pull in more prospective tenants and improve their motivation to paying the rent on time.

    Christopher.

    Profile photo of DraconisVDraconisV
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    @draconisv
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    Post Count: 319

    What are the values of all of your properties(including the PPOR).
    If your PPOR is way to high for just the two of you(or maybe 3), then maybe yoiu should switch to living in one of the cheaper IP’s and then rent out your PPOR at a higher price than the other IP was, this will bring in a bit more rent and will also make the higher mortgage interest tax deductable.
    This is all based on the fact that your IP’s are significantly less in value compared to your PPOR.

    Christopher.

    Profile photo of DraconisVDraconisV
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    @draconisv
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    Post Count: 319

    NODOC allows me to have low income, but must use high deposit.
    I think the one i would go with would be LODOC. As my income(when i buy property) will not be all that high, but i should have a 10-15% deposit.

    Profile photo of DraconisVDraconisV
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    @draconisv
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    Post Count: 319

    Hmm, so whats the catch. It seems like jsut a better way to go for everyone. Is there a penalty(e.g.Slightly higher interest rate)??

    Christopher

    Profile photo of DraconisVDraconisV
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    @draconisv
    Join Date: 2006
    Post Count: 319

    Dam, thats another idea down the drain.
    I’ll just have to keep trying…..

Viewing 20 posts - 181 through 200 (of 267 total)