Forum Replies Created
THE RULES
Do not spend money you do not have.
Buy steves latest book it has a chapter on this sort of problem and the type of repayment plan you need to take to pay down this debt.
Borrow money only for stuff that goes up in value over time
This is called good debt
Do not borrow money for stuff that goes down in value over time
When you pay off first credit card cut the card up and close accountComments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
if you are on austudy a negative geared loss will be deemed as income and affect your austudy. If it is positive income it will be deemed income and affect austudy. If you realise a capital gain it will affect Austudy as income.
Centrelink will make it harder to invest in property.Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
my father has replaced fibro cement sheeting (asbestos) with vinyl cladding but he selected a vinyl cladding that has the color throughout the whole plastic as cheaper stuff shows up scratches on the vinyl if the surface paint or coat is scratched. I have also seen a house cladded in red ceddar cladding. Not sure on costs though.
Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
my interest is charged at the end of the month on my loan but the actual interest is calculated daily on the daily balance. I know this as I asked the bank how they calculated the interest payment at the end of the month. The Formula is basically interest per annum / 365 * balance on day. it could be interest per annum/ 360 this is the american system for calc daily interest. Each day calc is added together to calculate end of month charge.
Ask your bank if you can get an accelerated fortnightly repayment method and if you would be better off using it.
Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
If you signed a sales contract with the agent it probably stipulates the commission and you will not be able to do anything about it.
A more productive way of working out commission is to have a two tier on the commission.
eg if real estate rep quotes say $400,000 as the price you pay a commission of 2% on price below or at $3600,000
Then you put in the contract that for every dollar above $360,000 you pay a commission of 16%.
This gives the agent a reason to get as high a price as possible for you.
If you work out the figures if he achieves $400,000 he gets 3.4% if he achieves a higher price he achieves a higher commission.You should read a copy of the book don’t sign anything by Neil Jenman or real estate mistakes by Neil Jenman.
see
http://jenman.com.au/Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
If a line of credit is taken out for the scheme/ purpose of avoiding tax usually through adding the interest to the loan rather than paying it off it will be caught by the tax office as an avoidance
scheme.
If the line of credit is for private purposes it will not be deductible.
It must be used to purchase property/asset that is income producing rather than for example buying a car, tv, stereo, pool, renovations to PPOR, ect.
What the LOC is used for is an important consideration !If the offset account is for a Primary residence loan it will save you money as the loan is normally not tax deductible.
An offset account will save you $640 in interest and cost you $192 in tax due to more income resulting from the nett property income or loss. but you will be $448 in front after tax.based on 30% tax rate.
If you need to access the $8000 you can at any time.A LOC will cost you in interest (8%) on $8,000 an amount of $640 to save you $192 in (30%) tax. That is still a $448 loss after your tax refund.This doesn’t sound like a good deal to me.
if you are just over the medicare surcharge threshold (no kids couple) its $100,000 (not a combined income but rather each individuals incomes) then this might bring the income below the threshold and thus save you an extra $1000 in surcharge tax it could be worth while..
http://www.ato.gov.au/individuals/content.asp?doc=/content/mls_booklet.htm&page=6&H6Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
How far from the sea is a consideration. Will some greenie come along and have the property rezoned in the next 20 years so it cannot be built on unless you own the property next to it. I have seen this occur at Rosebud Victoria so it does happen and is a risk. Will the property be under water in twenty years time?
Portland is a long way from Melbourne. about 6 hours drive.
It would be hard to predict how much growth will occur you may need to look at the population growth occurring in Portland through the ABS and what demographic is moving there. Like is it a grey hair sea change area or a low growth area.Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
This is an Australian web site .
Have you thought of checking out what Donald Trump has to offer
http://www.trumptactics.com/?linkid=200516&s_kwcid=property%20investment|572343924
check out
http://www.planetizen.com/node/20350
http://www.selectleaders.com/careers/index.cfm?part=ULI
http://www.uli.org/AM/Template.cfm?Section=Search&Template=/Ecommerce/ProductDisplay.cfm&ProductID=1386
http://www.selectleaders.com/careers/can.cfm?part=GST
http://usclusk.urbaninsight.com/files/employment_report_2005.pdf
http://msn.careerbuilder.com/jobseeker/jobs/jobresults.aspx?argv0=Connecticut_RealEstate.htm&IPath=OCS&ArgURL=/al.ic/Connecticut_RealEstate.htm%3FIPath%3DOCS&cbRecursionCnt=1&cbsid=fe4125428d624ad48be6eb9051661d06-223345684-VM-4
maybe you could do volunteer work for
http://www.habitat.org/how/factsheet.aspx
I haven’t had success in getting a graduate position out of University in Australia for the past three years, so I know the difficulty you are having. I have decided to become a mortgage broker via a mortgage broker development program and will be working for my self.Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
February Australian Property Investor Magazine page 45 has a approximation of the costs involved plus an article on what to expect when moving a house. I don’t want to type out the costs in this forum as it would be a breach of API copyright. The article would be of great help to you in this endeavour.
Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Peter, I have been 3 years out of university without successful employment. Yes $40,000 isn’t much but in a couple of years you will not be still on $40,000. I’ve given up on being employed as a graduate.
You should start off small buy a small unit to start with and work at paying it off. Then once your wage increases and your equity you will be able to sell and trade up / replace with a bigger place or buy a 2nd property.Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
this article might explain the concept of discounting rate on property
http://www.findarticles.com/p/articles/mi_qa3681/is_199608/ai_n8740834It looks like it is the time value of money invested in property
however this 7% figure is a long term averaged growth in money of property averaged over 10 or more years. As property doesn’t grow at 7% every year but if averaged over a long term it works out to 7% however you need to take into account that the real growth is 7% – 3% = 4% due to inflation and then take the 7% and subtract 50% = 3.5% for capital gains tax *.30 for tax rate ect . = 1.5% lost in tax.
So 7%- 3%-1.5% = 2.5% real growth..
However some growth during the boom was more like 100%Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
As published in the Australain Property Investment magazine
The Tax department cross checks with their Austrack computer system what self employed people declare as their taxable income with what they state to their low doc loan provider is their actual real income.
If it is different you could get an Audit request to explain to the ATO why there is a difference.Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Split on the loan may be know as a Line of credit against equity in first house or maybe known as portfolio loan. Enquire with loans manager of CBA what your options are…
Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
have you considered this scenario. You have the investment property negative geared and centrelink then deem the net rental loss as income and you lose some or all of your Austudy payment. Or you make a positive rental income and centrelink then deem the net rental income as income and you lose some or all of your Austudy payment.
Do not assume logic and fairness when dealing with Centrelink.
There goal is to keep you Welfare dependant.
[ohno2]Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
!!!!!!!!!! YOU WILL MISS OUT !!!!!!!
if you wait till mid year as employers pick the worst time for students to do their recruitment .
I know as I have completed University and am signing up to be a mortgage broker after 3 years of trying to gain a graduate position .
You will need a lot of time to go to employers graduation induction days in March / April/ May while you are trying to do university studies if this is your final year. Start looking at employers websites and go to any career days held at your uni from now on. They say it is like doing an extra subject.try to ask if your parents can borrow some of the equity through a line of credit on their house to lend to you rather than them going guarantee on your loan and losing their whole house.
Try to paint a smaller picture to your partner like investing in one house and working on paying it down to a point where it costs nothing to hold then later on borrowing for a second house based on how much you have made on the first house over time.
You may be able to convince her that you should have a house for the long term. One of the problems is people fail to plan long term and only see the short term picture rather than a 12 to 20 year time line.
Property will take time to build wealth. it won’t happen over night but it will happen.
Maybe you can get her to read API magazine or have it lying around when she visits or where you live together.Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
It is proned to Cyclones (Flooding) and watch out for termite damage in houses there. That is why Banannas have been so expensive for the last 8 months. The weather is hot also .
Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
try to get a line of credit on first property to come up with minimum of 20% deposit for next loan. Do not cross co lateralise first property with second property. If you have a high income you should be able to borrow the money. It is calculated on your income and equity you have.
In regards to paying off the first loan that is really up to your preferences and goals. While you are trying to pay off the first loan you could be missing out on further growth in the non purchased second property. I purchased a second property when I had the Tax department contact me requesting me to fill out an
IAS form due to the extra income from my positive geared property.
So it may not be in your best interest to pay off the first loan in a hurry for tax purposes as any net positive rental income is taxable income..Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I live in the next suburb from
Mitcham. It has good public transport with a train station and buses.
It has two major shopping centres near by Forest Hill Chase and Eastland in Ringwood and further away The Glen and BOX HILL and Chadstone shopping centres.
Also the new east link toll road will open in 2008 and should bring down the traffic in the area when people get used to the road having a toll even though the recently re-elected premier promised it would not be tolled in the previous election promises. Sunshine has a lot of heavy industry and also Truck traffic so I agree with the above comments from Blogs. Also consider Ringwood, Boronia, Nunawading, Knox, Forest Hill, Glen Waverley. Bayswater I have not any real idea about why it is cheaper but you may find cheaper prices there too.Having just discussed this with my wife you have BOX HILL and Maroondah Public Hospitals close by also. And in Mitcham road there is a private hospital.
Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Make sure to get landlords insurance (approx $600) that covers loss of rent, tentants trashing house, public liability, ect. .. You will need to cover stamp duty costs (depends on price of property ) also., solicitor ($500 -$800) , pest inspection ($500) (optional), Building inspection ($500)(optional) and Loan establishment fees ($600) and maybe a title search probably $250 also .
Important point you can’t get the loan money without having the place insured. You can’t get the place insured unless it is occupied hence why I use CGU Landlords insurance as they were willing to insure an empty house.stamp duty calc
http://www.osr.nsw.gov.au/erevenue/calculators/landsalesimple.php
Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.As Neil Jenman states DONT SIGN ANYTHING get independent valuation and independant solicitor not the ones refered to you by the promoter.
Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
