Forum Replies Created
MrVip… Trust me – I know what it feels like to ask what you think is a really dumb question, but the only silly questions are the ones you don’t ask!
I don’t know about the exact amount of fhog you are entitled to but I’m pretty sure you can use it for an ip… if I’m wrong I’m sure the gurus will correct me on that one.
NO – you don’t have to put a 10% deposit down. You can put as little as you want.
Rather than approaching a bank directly, I would recommend you speak to a mortgage broker about your finances. There are a few good ones on this very forum.
Good luck with it all!
I once heard someone say ‘Smoking is just a habit. Habits are extremely difficult to break. If you want to break a habit, replace it with a new habit’. I liked their way of thinking.
And it is just my opinion, but I believe that if you really want to give up smoking, you will… because you will find a reason to do so.
If you don’t REALLY want to give up, you will always find a reason/excuse not to.
Good luck to all
I would rent out the property, but would also convert the loan to Interest Only to minimize any extra $ that may need to come out of your own pocket to meet the loan payments. Good luck.
Try this page…courtesy of Mortgage Adviser in another post…
ouch… I suspected it wasn’t as easy as I’d thought, but still doable.
Thanks MA – I just love creative financing.. and btw, last time I checked I was a female! [laughing] Seriously, appreciate your suggestion.
Have a good day all…
Or you can click on the tiny envelope picture with the little green blob on it – that will ‘subscribe’ you to that particular topic and you will be sent an automatic email message whenever a new post is made to that topic…[biggrin]
Forgot.. when you get the email, there will be a link for you to click on which will take you straight to the reply.
Originally from Rocky.. then in Brissy, then Denman, Brissy again, Townsville, Wodonga, Canberra, now in sunny East Brisbane… sigh. Here to stay [thumbsup2]
Thanks for your replies….These are all great pointers I will keep in mind. Kind regards.
Not a holiday house…. I’m just interested what people provide, and also in case, when I go to buy an IP and ask REA’s what sort of rental houses are in demand, they say furnished houses, then I’ll know what I’ll need to include.
Hi Screamin,
Change the way you think about the cost of the social/interest side of your life.Sure it’s gonna cost $ to play sport or whatever, but if you look at that cost as an ‘investment’ into the quality of your life it might be a bit easier to bear.
Spend the money now on things that – when you’re 80 or so years old if you hadn’t done – you wished you had….
As they say, no point dying rich, you can’t take it with you!
Hi Pisces, why is it better to have the units as strata titled as opposed to all on the one title? How does this ‘reduce risk’. Thanks.
MiniMogul – re your advice on asking about vacancy rates etc – I had been keeping an eye out for suggestions on what to ask agents re this, so thanks very much – they’re excellent pointers…[specool]
Why do you need to sell your IPs??? Is it to get the $ out of them to spend elsewhere.. if so there are other options. If you don’t ‘have’ to sell… don’t!
Hi Michelle_G. The equity would come from the revaluation after improvements were done to the property. The other mention of equity was referring to that which was created after an increase in prices due to a property boom.
No you wouldn’t get direct equity increases from only paying interest on a loan. That suggestion was so that minimal costs could be paid in the beginning, thus enabling hiphop to get the required number of ip’s to reach his/her goal.
Whether you pay P&I or IO is up to each person depending on their own situation. yes P&I will pay off the loan sooner, but why not use the $ you would use as P payments, towards purchasing other ip’s. If you can afford, and are happy to pay principal as well, why not, but if you can’t, and/or don’t have to, why would you! And while paying IO may mean larger loans, remember, interest paid on ip’s is deductible.
Hope that helps…[biggrin]
hee hee…[biggrin]
Originally posted by geo:Hi all,
sorry for this but I do not know where to post this. Can anyone tell me that when they reply to a post, how they include the:
‘Originally posted’ part – I’ve been trying to figure that out for a while. Thanks guys.
Kind Regards,
George.“If You never never ask, you’ll never never know”
Click on the little button called “Quote”. It’s at the bottom right of a post… I think… well if this works, then that’s how you do it…
Hi hiphop. Good on you for making the decision to start. And it’s great that you are a good saver. I’m newish at this myself but I offer the following to you.
First of all, if I may ask, what is your situation now – How much savings do you have now?
what do you save each week?
Do you have a mortgage, rent, live at home?If you have enough savings now, there’s your first deposit! And if you haven’t bought a home before you have access to the FHOG. If you can, maybe borrow from friends/family? This will give you a great head start.
Maybe buy something that needs a little doing up, have it revalued so you can access the new equity(and if you can do the work yourself it’ll save a lot) – then voila, the deposit for the next place. (Although if claiming FHOG you may/will? need to live in the place while doing it up, then move out (back home?) when you rent if out). For your second and subsequent doer-upper-ers finance them at 100% if you really don’t have enough to put even a small deposit on them, and find a bank that will take into account 100% of rent as income. If you need the name of a good broker to help with finance my guy is great.
Maybe do a couple of wraps as well.
If you are after a passive income of 50K within 5 years you will need properties returning $50 each to your pocket every week (ie: $50 more than the loan interest payment – have interest only loans too btw). Unless you buy very well at the moment, that may be a difficult task to achieve. Although if you’re happy to rely on it, you can take into account what you might get back on depreciation, to go towards that $50 per week.
Perhaps set your goal date a few years longer so you have a chance of riding up the next boom. If you can wait that long, the value of your properties will have gone up – more equity, more deposits for more houses, and by then there may be much more of a chance of getting 50K income you desire. I know it means waiting til you are 33, but at 33 and having a property portfolio of possibly over 2 million you’d be doing pretty well!
You may end up starting out with -ve cashflow properties, but if you are happy to contribute an amount each week to make up the shortfall, and can wait for the next boom, you can then sell one or two of them and distribute the profits over the remaining properties making them cash +ve.
If you still set your goal at 50K income in 5 years time, you will need 20 properties to do this. That’s 4 per year – not unachievable. If you move the goal posts to about 8 years, that’s only 2.5 houses per year, really quite achievable.
Don’t despair, if you set your goals and work very hard at them you’ll get there. My very best of luck to you.
Thanks geo that’s a great idea.
Thanks also MortgageHunter. will be permanent ppor, so will pay cash as u suggest. Other option is good to keep in mind tho.
Thanks Geronimo – want to sell to get cash, and pay off approx $380K owing. Also downgrading. Bought ppor to do large reno for profit purposes to get good amount of equity behind me to start investing.
Thanks very much for the suggestions.[wink2]
I saw the show on Sunday too and while I think RE agents are rotten vultures, I must say this – in one part of the show the couple were discussing with the agent what price they wanted and their reason for wanting 1.8mil was because they wanted extra to compensate them for ‘having’ to leave their much loved house and all its memories. Even if they did get less than they wanted, and indeed less than what the buyer may have been prepared to pay, what they got is a pretty good retirement fund.[exhappy]
