Forum Replies Created
As you are near the end of your working life you may need to consider diversification of your cash and low risk investments.
A good financial adviser should mention this but also they should be not trying to sell you one product but many different options so you are diversified.
As they say it is risky to put all your eggs in one basket.
If you aren't happy with the quote then tell the property manager
I have rejected over the top quotes I received throughmy property manager.
Sometimes the suppliers think landlords are wealthy and try it on.
Go to the state revenue office web site in each state or google stamp duty calculator
NSW I think also has a vendors tax also
then there is real estate agent fees
Also if investment property Capital gains tax may be payableYou cannot have two houses at the same time as PPOR unless selling and then buying..
There is an overlap time if you are selling one house and then moving into another I think the time is 6 months
However you can deem the original PPOR as your PPOR for up to 6 years even if you are renting it out.
You need to be able to prove you were living there ie have proof /records of living there .
However the other house you purchase would be deemed as A CGT liable property as you can only have PPOR on one property.
see
https://www.propertyinvesting.com/forums/getting-technical/legal-accounting/4332172?highlight=PPOR%2Cexemption
for more details
as this is a common question asked on the forum
https://www.propertyinvesting.com/forums/property-investing/help-needed/4331897?highlight=PPOR%2CexemptionAgree with Richard. Ask the bank how much they will lend you on LOC against Villa if you pay $110,000 off the Mortgage.
Serviceability could be an issue on LOC that is why I am advising ask the bank.First thing go to another PM and tell them that you have a property under a lease and have a problem with the tenants.
Ask if they can take over the lease as they will know if you can do this or not and then phone the old PM and tell her YOUR FIRED!Serve the Tenants with a Notice to Vacate due to the requirement that the property needs to be sold with vacant possession.
60 days notice has to be given unless you have actually managed to sell and the contract requires vacant possession then 30 days notice. During this notice period the tenants can trash your house as a going away present for you.
http://www.rentalagreementsdiy.com.au/tenancy_laws_in_australia.php
http://www.docep.wa.gov.au/ConsumerProtection/PDF/Forms/RT01C_Notice_of_termination.pdfIf you take the old PM to court it will be deemed a minor claim <$10,000 and you have to pay all the legal fees even if you win the case. That makes it very dangerous to your wallet / hip pocket/ finances and you could end up out of pocket after you win !
http://www.magistratescourt.wa.gov.au/files/Civil_factsheet_3.pdf
The tenant may have told your PM that the toilet was leaking however if the tenant wasn't paying rent there would have been no way for the PM to pay for the plumber.
The hard part here is proving the Tenant told the PM the toilet was leaking.However the PM should have served a breach of agreement to the Tenant when they didn't pay the rent after 14 days with the intention of the Tenant vacating after another 7 days. Being a total of 21 days.
For a loss of $600 you could end up paying a lot more in legal fees to fight this.
That is why I am saying you need to get a new PM
You need a PM that is on the ball rather than one that makes excuses to you
If I was you I would write off the $600 as a learning experience and get a new PM who will keep up to date with the tenants rent and any problems / urgent repairs the property has.
(I fired a PM in Victoria for not renewing the lease or returning my phone calls by asking another PM to go over and collect the keys)Houses get knocked about by tenants and it could be deemed wear and tear.
It is not their house so they do not care as well about it as you would.VK6TVA wrote:Hi all,
I am going to the our Bank on Saturday to apply for a LOC from the Equity from our PPOR. If say we have $300,000 equity then the bank will give us a LOC of 80% being $240,000 in a seperate account.
Question is
1. "If we drawn down $100,000 from the $240,000 to use as a deposit to buy our 1st IP, will there be Interest charges and payments required for the draw down LOC as well as the payments required to pay the IP Loan?".If you draw down you pay interest on the LOC balance drawn on.
You need to check if you have to pay interest on the LOC or have it capitalized (added to the LOC loan)
You need to check if capitalizing the interest is tax deductible with your accountant.
You need to check if it has to be paid back what term if any is required.
VK6TVA wrote:2. "Does the rent get paid into the Loan Account or LOC Account?".
Your choice. If you want to do question 3 then probably into Loan Account
VK6TVA wrote:3. "As there possibly will be a shorfall on rent versus payments required for a loan payment, does the shortfall come from the LOC?".
Probably you could take out say $2000 from LOC and pay it off the IP loan and total investment purpose interest would work out the same for Tax Purposes. Depends on payment conditions of LOC though. Or you could pay $2000 in cash off the IP loan to give you the breathing space on IP loan if rent is delayed.
VK6TVA wrote:4. "Can our LOC account be used as an "Offset Account" for our PPOR loan account?".
No. An LOC is a loan and an the offset account is a savings account.
If you meant can you borrow money from the LOC account and then sit it in an offset account to reduce your PPOR interest then it could be done however tax deductibility is eliminated .
The LOC interest would now be non tax deductible as you have used it for private use rather than for investment purposes and the interest charged to the LOC would negate the interest saved on the PPOR.
VK6TVA wrote:Thanks for your help, I have serched heaps of websites, read a few books, spoke to a few investers and they all have different and confusing opinions. Help is always needed for Newbies.
Thanks Again
Your success is up to one person,
You
Do not let others stop youIn this particular location
The main high powered television transmission antenna is approx 34 KM to the east of richmond on a mountain range.
So the broadcasts are being beamed via microwave dish to Mount Dandenong to be transmitted on the high powered transmitter near the summit of the mountain at nav location -37.836389,145.347222
.Sorry No got the wrong studio .
HoweverThe Richmond Studio at Bendigo street is planned to close and be moved to Docklands.
http://blogs.crikey.com.au/contentmakers/2010/04/07/channel-nine-moving-to-docklands-end-of-an-era/
http://www.realestatesource.com.au/nine-network-to-sell-richmond-studio-to-lend-lease-for-52-million.html
There is a microwave tower on the roof of the studios facing Mt Dandenong with two dishes that can be seen from bendigo street on Google maps street view..You are referring to Bendigo Street at Richmond.
From Google Earth it appears that a Satelite dish may be being used to relay the Television broadcasts from Sydney to Richmond .
I would think that the studio would most likely set up a new satellite dish at Docklands or move it when they move there and might move the microwave link or set up a new one from Docklands to Either Bendigo street Richmond or directly with Mt Dandenong.They may keep the tower and microwave link most likely for a back up redundancy radio system in case the direct docklands system fails however if they are selling the property there is a possibility the new owner/ developer may not want a radio tower on top of the building and may not have need for a satellite dish.
Have a look in the back of Australian Property Investor Magazine the next time you happen to be in a newsagents.
Sometimes they have information of this nature .JacM wrote:There have certainly been films made about health problems eventuating from living near those gigantic powerlines. I've heard people comment that there have been "a lot of people living near them and their power lines that have come down with a case of cancer". I don't know the costs associated with having above-ground power compared to below-ground. I don't know if the only reason they're putting them below-ground in new estates is aesthetics, and to reduce the annoyance of the powerlines falling down in storms.If you are sufficiently concerned about it, maybe listen to your gut. You'd be pretty upset with yourself for having the concern, moving in anyway, and later on becoming ill. You'd always wonder if there was a link.
The gigantic power lines are usually at 220,000 volts where as the street power lines could be 22,000 volts for the high voltage top wires or 415 volts for the three phase power lines usually there are five wires . one neutral , one for street lighting and three for each of the three phases.
putting the wires underground reduces the annoyance and the likely hood of someone driving a car into a power pole or trees falling on them. Being underground the EMR is grounded and cannot transmit through soil.
EMR – Electro Magnetic Radiation
see http://www.answers.com/topic/electromagnetic-radiation
This is a form of energy caused by an alternating current flowing through a wire and is how radio signals are transmitted the power lines carry alternating currents at 50 Hz. can also be light.
Normal Radio is a lot higher in frequency and thus radio signals transmit easier from the wire (antenna).The television studio could be beaming the television shows up to Mt Dandenong as most of the Television is transmitted on the large television radio towers situated on Mt Dandenong. They may be using a lower power radio link or land lines. Yes there is a tower located at the back of the studio buildings- A closer look at the tower reveals it has two microwave dishes. It is at the top of the tower and microwave signals are extremely directional and narrow beams so residual radio radiation at the back to the dish would be low The tower may also have a cellular mobile phone antennas about half way down the tower if my memory serves me correctly you may want to look at the tower and check. Being a metropolitan mobile base station the power output would be lower due to the high mobile phone traffic on the major arterial road, making the cell a smaller radio coverage area. From what I saw from Google maps the antenna (directional sector) is pointed towards the major arterial road to the East.This means the power output of the radio would be a lot lower as most of the mobile phones are 400 m on the east side of the tower
. The mobile phone antennas are directional and are referred to as sectored. So most of the busiest sectors would be pointed to the major arterial Road to the east.if it is the development I think you are referring to. The radio Tower is approximately 400 meters from the property development. The thing about radio is that every time you double the distance away from the antenna the radio signal is reduced by the square of this. So double the distance away and the signal is 1/4 the strength.
So the amount of residual radio signal coming from the back of the mobile phone antennas where the development is situated from the mobile base station would be very low as all of the radio antennas are directional devices so the radio signals would be pointed and directed towards the major arterial Road in the east side for the mobile phone traffic and to Mount Dandenong (east direction) for the Television broadcasts. There are a couple of short antennas at the top of the tower that are most likely transmitting directional television shows to the main transmitter at Mt Dandenong at a low power level due to being directional . The Mobile antennas would be pointed at the mobile phone traffic along the east side arterial road and the mobile cell would be designed to cover a small area of coverage being on the major arterial road.
Also there are existing houses behind the tower to the south that are a lot closer than 200 meters.The antenna on Mt Dandenong has signs warning people of the radiation danger due to its high power transmission levels as it serves a very large distance and lots of Televisions hence the reason it is high up on Mt Dandenong.
I suspect the Larger Microwave dish is most likely a microwave feed from Sydney.
The smaller 20 giga hertz Directional Paso microwave dish may connect the mobile base station to another feeder mobile base station in a distant location or may be used by the Television Studio.If you want to see a radio tower have a look at the Surrey Hills radio tower
on Canterbury Road and Harding street and the houses are a lot closer to it !If you are really concerned you could get an EMR survey done for the house site.
see
http://www.yshield.com.au/emr-survey-shielding-rf.html
http://www.compeng.com.au/radiation_hazard_measurement.aspx
http://buildingwellness.com.au/radio-frequency-testing-and-shieldingI am not sure if the Helicopter flies and lands at the Television Studio I have not seen it for many years so it may not fly in any more. May need to ask your prospective future neighbours.
.
I have been in a similar position as I have not worked for 6 years due to kids. You may have to think about joining/ creating a joint venture development or using money partners.
See if you can get it moved to another part of the land.
I know a friend who had an easement running at the back of the property and did a land swap with the land on the side of his property for the easement. He contacted the water company and managed to get it moved.
There may not be an actual pipeline under the easement it could be for future needs for a future water pipe if needed.I would factor $1000 minimum for repairs as if something breaks like plumbing or hot water service it has to be fixed straight away.
Council Rates approx $700 a year check with real estate agent they may have a copy of the Council rates.
Water Rates approx $700 a year but depends on water company as my parents pay 1200 due to wilsons prom charge, check with real estate agent they may have a copy of the water rates.
Insurance – get a quote as you will need insurance anyway probably $600 to 800 a year
9% loan repayment p& I over 20 years is approx $210 a week $36 a week principal and $173 as interest payment
It is a good idea to have cash in an account in case tenants do not pay rent or pay late of about 3 months or more that is $2400 so you do not default on the loan payments if relying on the rent to cover this loan repayment transfer payment.
If the house gets trashed or abandoned it could take 3 months to fix the house to a rent able state.
Not sure on property management fees you need to make inquiries with propective real estate property managersYou also need to factor in Stamp Duty on your purchase do a google on stamp duty calculator
if Loan to Value ration is >80% you have to pay mortgage insurance at time of loan settlement – google mortgage insurance calculator
Also you will be hit with loan establishment fees by the lender bankIt is always good to work out the cash flow figures as well
income = rent – prop manage fee – 9% interest on loan – council rates – water rates – insurance – $1000 for maintenance
If you have a negative income figure then you can decide if you can afford the cash flow loss
If it is a positive figure then you have less trouble affording it.What you need to decide is what is your goal
To own a positive cash flow property (is there a chance of capital growth)
To pay down the loan as quick as possibleor
To own a negative cash flow property (possibly get capital growth)You may find $3000 to $4000 per year may be what it costs for the extra costs above the interest charge
I stated 9% interest rate as interest rates are on the rise (worse scenario)
if you use an amortisation template in excel you can work out the repayments if p & I
as you may wish to use repayment amount instead of interest charged.I have though also about the falling AUD exchange rate
If AUD falls then Petrol cost increases as Petrol is imported from Singapore
If fuel prices increase – cost of goods increase
Also consumer items are imported these go up in price.
If prices go up – wages demand increases for wage rise- If wages increase – inflation increases
If inflation increases then interest rates increase to control it.
So not only does average mum and dad and FHO get hit with interest rate rises but also the cost of living rises due to the exchange rate AUD falling.Here is the link for the property in question
http://www.realestate.com.au/property-house-qld-woodridge-106424040
Yes I know it looks exactly the same as the previous link but what I discovered is REA moves the properties sold
to the sold area rather than the buy area of their web site
