Forum Replies Created
Hi,
thank you for the comments.
The excess money will be used for investments…Redraws are also used for investments. I would like to build my art portfolio as well And personal spending is paid out of savings.
Cheers.
DianneANZ have a V2 account which doesn’t charge for any withdrawals & you don’t loose your interest for month if you withdraw, however you must maintain minimum of $5000 in the account. I think it is 6% interest from memory.
Yes I found out about the $1.01 per week fee centrelink charges…they charged me not the tenant. The tenant has to come into the office each 10 weeks & pay the shortfall of $10.10. It has only been 4 weeks so we will see if this actually happens.
I don’t see how centrelink can say that it isn’t the responsibility of the tenant to pay this shortfall – given that if anyone pays direct debits to other accounts it is charged to the person doing the transaction not the one receiving the money…
Will keep you posted…after the 10 weeks.
Cheers [blink]DianneThanks Terry for taking the time to do this for everyone…it is most appreciated.
[exhappy]Hi everyone,
I have just come across this thread & I am saddened to see that there is so much bickering & judgement being passed around.I feel saddened that Simon will not read the thread again nor contribute to this wonderful base of knowledge. Simon I have enjoyed your responses even though I don’t make reply posts.
Today, I felt it necessary to add my point of view.
Wendy I am sure that many women will be most grateful for the time & effort you have put forward to get people together (whether male or female) & contribute to the world of property investment. Good on you – Go the Girls!!! Boys – I am sure that you could get one of the ground as well if you really wanted to. But make sure I am invited!
I, myself would join in with any of the groups and make it worthwhile, be it women, men or both. Personally, I like men too…I think they have as much to contribute as women do, if not more in individual cases..
But now I want to share from a woman’s point of view something that happens quite regularly in the property investing world that I am in. This may be something that a womens group could discuss & discover ways to overcome. Women at a group would all be having a laugh at this (at mens expense of course). However it doesn’t fase me & I have a chuckle each time it happens.
1st of all, when I look at property with the intention of improvement I take my builder (Peter, who is male). It just happens that somehow most of the REAs talk to the builder about the property with all questions that should be asked of me the buyer…he simply responds “don’t look at me I’m just fixing it – she is the investor”…It is with much surprise that they turn around and the first thing they say is “Oh I’m so sorry”… Most people assume things or are judgemental about things probably with every good reason – it is mostly men that are in this field or have been up until now.
Peter & I now have a standard bet on what the next REA will do & who they will fire the questions at. Whoever gets it right gets to shout the next lunch. It is getting more difficult though as they already know me now…[happy3]
Anyway, I trust that the womens investing club will be a huge success…good on you for taking the time to organise it Wendy…Congratulations. [upsidedown]
Happy thoughts & sunshine to all…
Cheers Dianne BurnsHi there,
We are in exactly the same situation at the moment. I have heard it said that you don’t have to pay SD if the Directors & shareholders are the same as the individual, however after professional advice it is NOT true. (in Qld anyway)We were in the process of changing our premises over to our family trust. All documents were drawn up ready to go. We had a valuer come and assess the premises. We were ready to go ahead and then I saw a post on the forum & thought I will just look into it further.
The value of the property being transferred has to be market value and the SD and associated costs does have to be paid on the sale. The costs involved and the CGT paid on the property would have been huge, so we decided that leaving it in our own names would far outway the small amount of tax savings made over the term of the leases going into place befor Xmas. Also the fact that we intend to keep this property – it made no sense transferring the names into our family trust. It would be wasted money.
Thank goodness we stopped it before it went through…[chill]
Cheers
Dianne BurnsGood Question…when someone gives you an answer, please let me know too?
Hi Kum Yin,
Good luck…please keep us informed of your progress & whether you do a deal with Martin Ayles. I will be attending his seminar in October so I am sure I will learn heaps.
Cheers…Di Burns[exhappy]zopm,
The costs all depends on where you are…Working it yourself will cost your labour in finding other deals, so it all comes down to what you want to achieve…
I work it into my numbers at the number crunching time so I don’t have to do the labour myself. If I were to do the labour, I wouldn’t be able to do as many deals (and I probably wouldn’t have found the deals in the first place because I was busy doing the reno).
I guess it depends on what you want to achieve, what your goals are & how soon you want to achieve them…
Good luck,[happy3]
dianne burnsThanks for the tip…How much rebate do the Government give you for putting in a rainwater tank? I hadn’t heard about that? How do they pay the rebate – is it on invoice?
Thanks & have a brilliant day!
Dianne BurnsHave you considered just painting the roof – if it is still okay and just looks bad. This is the cheapest option and looks a treat afterwards.
Good luck…Di
Hi Chris,
Thanks for sharing your predicament with us.Have you thought about renting out your PPOR at a higher rent & living in the 2 bedroom unit for a time until you feel your circumstances are changing?
Also I would consider putting your rentals up…Have a property manager help you there. If you have plenty of cash in the bank, why not do a small reno before putting in new tenants at a higher rent. The extra rent will ease the burden.
Good luck with your options. You will choose what is best for you & your family. Cheers. Di Burns[inlove]
I am sorry but I must remove this post soliciting funds.
I am interested in knowing why you would want to do a 105% loan for an IP??? I am not sure I understand your logic? Can you please explain to me…
cheers DiHi Island girl.
Seems to me you already have a good handle on it all. You have done your homework & you have goals. Maybe it would be a good idea to set a few targets to reach over timeframes…this helped me stay focused and kept me moving forward.
You have a fantastic start…Keep up the good work..
Cheers. Di.[thumbsupanim]My advice to you is to do one of Steve McKnights seminars or read one or two of his books.
I did exactly this in January this year & now have the knowledge to buy a property with positive returns. I owned only one property in January that was very very negetive geared…We are talking $1450 per Week!!! EEEKKK.
I have since changed that property to a postive outcome & gone on to purchase more properties as well as quitting my job of 16 years. So as you can see, knowledge is powerful and actions speak louder than words.Get some knowledge…ask lots of questions, do lots of number crunching and most of all TAKE Action – even if you make mistakes. It is a great journey and you will learn lots. Good luck.
Cheers, Di Burns[cap]
Hi Munno,
Just thought I’d add my thought here for you. Some the same as others…Option 1.
Q1. Maximum benefits – talk to a good accountant and get advice with regard to anything to do with ATO.
Keeping the house is good option if the rental yeild is ok. If you do choose to put in a friend, do it through a rental manager at proper rental returns with the normal procedures in place to increase rent as needed & property inspections etc…
Q2. You won’t pay CGT on a PPOR if you sell it after a year of living in it yourselves. If you change it over to an IP and sell within the year after it is a rental, you may – not sure -check with accountant. If the property is bought in your own names, you will receive a 50% discount on CGT, that will be divided between the names on title. It will depend on income what the rates will be on that portion.Option 2.
Q1 Costs incurred in selling will be around 3% for commision on sale, solicitors fees etc. Check with REA for their rates of commisiion.
Q2. If the house hasn’t increased in sale value but the rents have risen, then this could be a potential property to keep & rent out. To find out what your rental yield is: weekly rent x 52 divided by value of property x100= rental yield %age.
Note: Rental yield – if higher than rate on the loan ,will normally be a positive cashflow propertyOption 3.
Building a home
Take careful consideration with the first one. Timeframes are always longer than first expected…costs are normally higher than budgeted…and then there is always something else not thought about.
However building a home can be a part of the journey to learning more about the investment world…Whatever you choose to do…enjoy & good luck with it. Keep everyone informed on your progress.
Cheers…Di Burns[strum]By the way, never be sorry for long posts…we love them. We all learn from them too![happy3]
I feel that any area has potential, however it is what you do with it that matters. Mt Isa has been booming for quite some time & doesn’t look like stopping in the near future. I have been researching & watching there myself for some time, however I feel I am too far away to keep a good eye on what is happening with my IPs. So I chose somewhere more local. The choice is only yours to make.
My opinion is that you need to find the area that you are comfortable investing in, do the research, do the figures & take action if all is good.
Take action is the important part…
Cheers DiIn my experience it is not a huge problem, so long as the main structure has no damage. Stumps last time I checked were about $150-$250 per stump to fix (about 3 months ago), and it may be a simple case of plastering to fix the wall.
I would recommend you find yourself a good & reputable builder or handiman to go around and check it with you. You might also like to have a building inspection done before you buy it just to be on the safe side.
Cheers…DiThere is more to loans than just the IO or PI part. IO is the way to go if you want to build your property portfolio.
There are other things to consider when taking on loans. Remember to check what sort of loan is best for the deal you are doing. For instance, You may have a huge break fee should you wish to pay out the loan early on a sale of property.
There may be variable interest only loans or Fixed interest only loans. I recommend you do what you think is best for you & your circumstances. Ask lots of questions before doing it & be sure they answer the questions you ask.
I also think it is important to check what the interest rates are (and compare). Use your bargaining tools to find the best deals.
Good luck. Di
