Just out of curiosity Simon is it not possible to renegotiate the loan at this stage into a split loan in the proportion that it was actually used. You can then concentrate on paying down the non deductible debt and if that inheritance eventuates you can just pay down the home loan. 

Paying stamp duty again is a pretty hefty price to pay at this stage I think.

Thanks

Elka  

Hello Browny

Unless you're in wiggles position  (i.e. close at hand and a handyman)  you normally  give your PM permission for repairs up to an agreed on amount. Anything above that they need to contact you.

The exception to this is if it's something urgent or dangerous. If the toilet is flooding or the electricity has fallen out or something then he will get it fixed at once and normally tell you later.

Do you have an agreement with your PM about repairs?

Hope this helps
Elka

Or better still put all of it into a 100% offset account against your loan and just pay the mortgage out of this offset account.

You can stay home with your baby for as long as you like.
All the profit from your IP sale will be being used to reduce the interest on your house loan.
You retain the flexibility to use this profit later to buy another PPOR and all the current loan becomes tax deductible when your current home becomes an IP (as discussed in your other thread).

Good luck 
Elka

Hello Sienna

I don't want to add to the negativity but really have to ask you this.

Do you really believe that the rent on your residential IP will go up by $60 -100 per week over a 4 year period? Maybe in a boom town but I have never seen such an increase without a renovation in that time period.

I also got lost as to how you were planning to finance the other  4 – 5 investment properties over this time period and why you believe they would be generating income when your first IP is negatively geared.
 
I'm not trying to shoot you down. I just really want to know. 

Cheers
Elka  

Hello pasandbec

If you do decide to sell then put the profits into an offset account coupled to your PPOR loan, not into the loan itself.

If you then use the money in the offset account to buy a new PPOR and turn the current PPOR into an IP then all the interest on the loan will be tax deductible.
 
If you pay down the loan and then redraw to finance the new PPOR then the interest on the redrawn amount will not be tax deductible as it will have been used for private purposes.

Hope this helps
Elka

Congratulations Linda. Which was your story?

So which story won. I just checked Amandas site but couldn't find any results posted.

Elka

Hello  forgetful

I don't know which example you are using.  I have 2 of Steves' 3 books but not the last one yet so without actually knowing the details of this example I will try to explain. 

Knowing that Steve mostly buys cash flow positive investments he did not have to pay out the $1000 per month that you used as extra savings into that mythical bank account. By this I mean that the rent from the house was greater than all the expenses including mortgage repayments.

Put another way, his out of pocket costs were probably zero per month while yours, in your comparison, are $1000 per month.

Therefore a more accurate comparison is

Lets say Steve put in the 20% deposit, had no monthly costs and sold to make a nice profit of $72679 5 years later.

You put the same amount into a bank account, had no monthly additions, earned 6.5% interest (let's be generous) how much did you end up with after 5 years? 

Even if a property is negatively geared (i.e not self supporting) you can still make a profit. The trick is to find a property that will appreciate faster than the out of pocket holding costs.

Don't forget, not all property automatically makes money. The trick in investing is to find the ones that will.

Can you please tell me what the outgoing rent  ($43316)  is in your post? I got lost there.

Hope this helps more than it confuses

Elka

Hello RichLee

If you have a trust it makes sense to set up an account in the name of the trustee. I have a company as the trustee so that's the name on the account. The type of account is up to you. If you have an offset account linked to your mortgage then this seems like a good place to have the rent deposited into otherwise the best interest you can get..  Keep your personal accounts separate from your IP accounts   Makes life much easier specially at tax time.  

The tenant pays the rent to the property managers office and then they transfer it to your nominated account each month. This way they keep track of the incoming rent. The PM should deposit it into your account as soon as they get it ( not once a month at the end or something ) and send you a statement. You can ask them to pay things like council rates, water, property insurance, landlords insurance etc. out of the rent. All these will show on your statements. In Melb. this is all part of the service. I don't know in other places so ask if this costs extra.

Good luck with your first IP.

Elka

Great improvements. Love the new features and the look of the site. Love the spell check.

One suggestion.

I wonder whether it is possible to limit the use of an avatar to one member only . 
I have no idea how difficult or possible it is technically but maybe you could remove it from the list offered as soon as someone uses it.

I seem to be seeing 3 Steves and at one stage 2 Qlds007.

Elka