Forum Replies Created
Hello Terry
What a clear, easy to follow explination. Thanks. [thumbsupanim]
Hello Vyaw2003
From Terrys’ post
“An option is an agreement whereby the purchaser has the right, but not the obligation, to purchase something in the future.”
If in 6 months it was worth $800K instead of $1M you would obviously not excersise your option to buy.
You could still then turn around and buy it for the new value of $800K if the vendor was willing.
Cheers [smiling]
ElkaDid you ask your (ex)mortgage manager wether they would have allowed you to draw equity in the form of another loan?
Maybe they couldn’t/wouldn’t so your broker went elsewhere …i.e directly to the bank ?.
Don’t get me wrong. I am certainly not trying to find him an excuse. Whatever the reason for his actions he should have sat down with you first and explained all the costs and ramifications of what he was going to do. His actions were 100% wrong.
I’m also a bit puzzled at the high breakcosts. I thought that if you terminate a fixed loan early but the interest on the loan is lower than the current interest rate (by your post 0.75%) then the bank is actually happy. It can now lend the money at a higher rate so your break cost are negligable or even zero. I thought the break costs were to compensate them for loss of interest. Am I wrong?
Let us know how you go.
Good luck
ElkaHello queengucci
What a horror story. It seems to me that the bank should have picked up on the nonsensical request to refinance 2 loans to the same 2 loans specially as one was a fixed rate loan which not only attracted breakfree fees but a higher interest rate as well.
I would have thought that they would have queried this with you themselves if they are worth their salts.
Have you tried talking to your bank manager about this aspect of the situation? I would think that this makes them look so unprofessional that they may be willing to reverse the whole thing?. I mean you are a good customer if one of your loans is for $800K.
I’m probably being naive but maybe worth a try?
Good luck and don’t give up.
ElkaHello Hemma
What a lovely offer. [thumbsupanim]
I wish I had something that needed an artists impression. However, I’m sure someone is developing at the moment and will take up your gift.
Good luck .[smiling]
ElkaHello ausdmx
Here is a link to a thread about Dubai. It may be worth your while to read the opinion of a couple of people who know Dubai from either having been there or from living there.
https://www.propertyinvesting.com/forum/topic/24511.html?SearchTerms=Dubai
Hope this helps [smiling]
Elka“On the question of capital gains: why is considered that I am paying him 50%? “
Hello tera
Because you are or should be. Partially in cash and partially by taking over his share of the mortguage.
“e.g., Unit bought for 170k, after refurbishings is worth 200K, but we could sell maybe for more, say, for 210K. difference= 40K, profit each= 20K
I pay 20K to him in cash, and he signs over the property, loan, back to my name. “
Actually I don’t think your calcualtion is correct. It fails to take into account his share of the deposit and any repayments he has made together with you on the mortguage (assuming PI).
Assuming you both paid half for everything i.e deposit, buying costs such as stamp duty and conveyancing costs, renovation costs and mortguage repayments the easiest way to calculate is to simply think of it as a sale to a third party.
New value of house $210,000, partners share $105,000.
Mortguage left on house is, for example $140,000, partners share $70,000.
$105,000 – $70,000 = $35,000 This is the amount you owe him in cash.
Or maybe it’s easier for you to think of it this way.
New value of house $210,000 minus $140,000 mortguage = $70,000 cash left after “sale”. Half of that ($35,000) is your partners.
Wether you have both actually made a profit or not is dependent on how much you spent on reno plus all the cost of the purchase.
Hope this helps [smiling]
ElkaHello seank
There are several threads on this forum dealing with student accomidation.
If you do a search (under forum drop down list above) on this topic you will probably get some answers to your questions.
Hope this helps [smiling]
ElkaHello joelc
I don’t think you need to panic.
Stamp duty is not a charge by the bank …. like valuation fees or loan establishment fees… which you would have to pay since, by signing the contract, you had agreed to do so.
It is a charge by the SRO and the amount is fixed based on their rules. It does not matter what the bank wrote. It matters what the SRO charges. The bank just pays it to them on your behalf. In your loans contract the bank would have filled in an estimate of your stamp duty but if it’s wrong I don’t believe it effects your contract.
It may be that if you first buy a block of land and then contract to build a house on it you only pay SD on the land, but if you buy a land and house package it’s on the full amount. I don’t know. I’m just speculating.
Why don’t you ring up the SRO and ask them what the stamp duty should be in your case.
Have you settled on the land yet? If you did and it was a couple of months ago then check your bank statements to see what, if any SD has been paid on your behalf. It’s not done at settlement. It’s done later and you should be able to see it as a seperate payment..
Even if there has been a mistake made it can be rectified. On my last property the bank overpaid $3K SD on my behalf. As I suggested to them, it turned out that someone had incorrectly reported how much I had paid for the property to the SRO. The bank reimbursed me the $3K plus the interest I had paid on this amount.
They would have gotten the money back from the SRO too.Let us know how you go please.
Cheers [smiling]
ElkaHello vyaw2003
To answer a couple of your questions that you won’t actually “see” at the auctions.
Yes, it would be very smart to have pre approval.
Yes, you need to bring your cheque book though you don’t actually need to have the money in the cheque account loosing you interest. Just ask the agent to delay depositing the cheque for a day or so to give you time to tranfer the funds. They don’t usually have a problem with that.
Cheers [smiling]
ElkaHello pauldwilson
This question has been covered many times in the forum and I think it’s fair to say that most people don’t like this as an investment.
If you use the search function (in forum drop down list above) and search for hotel rooms you will find many interesting threads.
To start you off here is one I found for you
https://www.propertyinvesting.com/forum/topic/25370.html?SearchTerms=hotel,rooms
Hope this helps. [smiling]
ElkaHello
When I was a kid in primary school someone from the ANZ bank came and gave us a little talk on money and saving. He also opened up a saving account pass book for each of us. Every Thursday my mother used to give me 2 shillings to put into my savings account. It was the start of a great saving habit.
Not a bad investment for the ANZ bank either as would you believe I am still with them. [smiling]
Maybe they should start something like that again.
Happy saving
ElkaHello summersky
Here is a link to an investment calculator which may help you calculate what rate of return you need to achieve for x years to get you to the income you want to have at retirement.
http://www.landausecurities.com/calculator.asp
Maybe it will help you calculate how aggresively you need to invest to reach your goals.
I am definately NOT recommending the site and naturally they are in the business of selling you investments.
B.T.W. I also don’t agree with your investment planners suggestion that you only need $40K income in retirement. In my opinion one needs more income not less in retirement. After all you have more free time to spend it in [biggrin].
The days when retirees disappeared behind their pot plants are long gone. As you say , you want to travel and I am sure that you will find may other great activities to persue after you retire. This all takes money.
Hope this helps. [smiling]
ElkaIs there an approximate start date when asbestos came into use?
Thanks
ElkaWere you ever in doubt?
Who was it that once said that the first million was the hardest.
I think we now have to up that to 2 or 3 million. Inflation you know. [cigar]Hello Rob
I don’t know of any CD’s but someone on this forum once posted a link to the site below. Of cause they sell commercial property but there is some very interesting educational material on their site.
If you join (free) they will send you seven lessons about commercial investing. Not a bad place to start maybe.
Hope this helps [smiling]
ElkaHello trajik
I think summersky (nice name) means that she/he pays an overall rate of 27% (i.e some at 0%, some at 16.5% and some at 31.5%).
That’s possible. [smiling]I am struggling with the question of to Super or not to Super myself. I am even closer to 60 than you Simon [thumbsdownanim and don’t have any Super at the moment..
I have residential IP’s (3), 1 commercial IP, shares and cash but really need to do something to increase my income on retirement . So what to do. Another commercial IP? Managed funds? Super?
Actually every time I read the posts about the finacial armageddon we are facing all the options seem scary. After all if both property and shares are due for a major downturn then the only “safe option” is to put all your cash into a high interest fixed deposit account within a SMSF and just live off the tax free interest (less that years inflation) at some point. The ultimate zero risk strategy?.
However, I have never been one for zero risk strategies though I do not have the temperament to live off equity. [blush2]
Yes, I will be getting professional advice (though who do you listen to?) but would appreciate any comments or suggestions.
Thanks [smiling]
ElkaHello Ana
You certainly don’t give anyone much to work on. [smiling]
Seeing as you have already bought the property maybe you could tell us a bit more about it. Maybe someone on the forum has a property in the area.
Rent will depend on location and number of bedrooms/bathrooms/ modern or dilapidated, nice garden etc.
As stated, you should already have a good idea of the rent you need but since you don’t, I actually don’t see any harm in asking the agent you bought the property through. You are not bound by his estimate but it gives you a starting point.
You can also ring up other agents in the area and ask them too. You don’t have to tell them you have a house for rent. You could just ask them what you would have to pay to rent such a house.
If as you say there is nothing to rent in the area once you have a ball park figure you can always ask 10 or even 15% more and let the market decide if you’ve priced yourself out.
Cheers
Elka“I await the blatantly obvious to be pointed out to me, but looks like a good deal.”
Hello d_robb21
The problem is that the rent is $100 per MONTH not per week.
Unimaginable to us here so it’s very easy to miss.
Cheers [smiling]
ElkaHello ogilvy
Have you had any success with leasing your shop. If so can you please share which strategy you used that worked?
Cheers
ElkaHello CT
I can’t find the post but if I remember correctly, not so long ago someone posted that there has been a ruling from the ATO that you can not use income from an IP to reduce personal debt instead of paying off loan against an IP and still claim full tax deduction of interest for that loan. In other words you first have to use the income from the IP to offset the expenses.
Correct me someone please it I am wrong.
Cheers [smiling]
Elka
