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  • Profile photo of GetRichOrDieTryingGetRichOrDieTrying
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    @getrichordietrying
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    July 27, 2012 - 1:31 am

    Hi sorry for the long time to reply.

    I have a commercial property and on the lease it clearly states the tenant are to pay 100% of all out going which is related to the building.
    They are being stuborn and refusing to pay a few things such as building insurance that i took out and fire safety cost for the building.

    I just need someone who is experience.

    Profile photo of GetRichOrDieTryingGetRichOrDieTrying
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    @getrichordietrying
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    October 4, 2011 - 1:26 am

    Derik and Jamie M and Terry M have been such a huge help and inpiration to me as they have exllained quite a lot and make thing clearer. I didn’t know much before but thanks to these three they have given
    Me such confidence and heading forward.

    They know what they’re talking about.

    Sonny nguyen

    Profile photo of GetRichOrDieTryingGetRichOrDieTrying
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    September 10, 2011 - 5:01 am

    Ok so the money that is redraw have to be in a different account ie seperate from all other funds or can be use to pay off purchases to be 100% safe right?

    Profile photo of GetRichOrDieTryingGetRichOrDieTrying
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    September 10, 2011 - 4:43 am

    A redraw shouldnt effect the new investment should it? Unless you refinance with the original loan and use that money for invezting.

    Can someone clarify?

    Profile photo of GetRichOrDieTryingGetRichOrDieTrying
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    @getrichordietrying
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    September 9, 2011 - 11:44 am

    Oh it’s my fault for not paying attention when she was explaining things.
    I called her to double check on things and basically she’s saying what you guys are saying.
    To pay the ppor 1st then just pay interest only for ip.

    Profile photo of GetRichOrDieTryingGetRichOrDieTrying
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    @getrichordietrying
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    September 6, 2011 - 1:29 pm

    You have to give me a bigger wink Jack.

    Maybe a pointing finger and GPS location lol

    Profile photo of GetRichOrDieTryingGetRichOrDieTrying
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    September 6, 2011 - 12:38 pm

    LOL I was thinking the same thing when you guys were explaining things to me but i didn't want to sound rude that's all.

    Well at least now I'm a bit more informed than I was yesterday thanks to people on this forum.

    It seems I will have a meeting with my banker and seek out some new loan options with offset facilities to somewhat future proof my needs.

    Now just gotta save for another property.

    See you at the end of the rainbow how ever big or small they are.

    Profile photo of GetRichOrDieTryingGetRichOrDieTrying
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    September 6, 2011 - 10:38 am
    Quote:
    Under this situation you are better off placing your principle payments ($200 above + principle payments currently made on your home) into an offset account.

    When you find the new home you can grab all of the money in your offset account and use these funds as deposit for the new home. If you borrow funds against either your existing home or the commercial property to buy the new home these additional borrowings will not be deductible. 

    Oh man.  I'm so glad you explained this to me as I never knew this before. 

    So in my case it would be best to re-finance both loans to be interest only with offset account so that the interest on the commercials can be tax deductible and the principal from the home will then be used for the new PPOR.

    But I have two more questions though. 

    1.  If my loan term is 15 years and during this time I'm only paying interest only while the money from the offset is used for other matters then what are my options?

    2.  So by having an offset account/s on different loans you can use that money to funds you next invest while still having the benefit of tax deduction on the existing loan right?

    Profile photo of GetRichOrDieTryingGetRichOrDieTrying
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    September 6, 2011 - 9:09 am

    Just buy the damn thing lol.  IT's only 32 bux

    Profile photo of GetRichOrDieTryingGetRichOrDieTrying
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    September 6, 2011 - 8:51 am
    Derek wrote:
    First thing I would do is convert commercial property to I/O and (because you want to pay things off) put the money you save into your own home. This will have a similar net effect but is more tax effective.

    Are there any plans to buy a 'bigger, better' home elsewhere? The answer to this also has some bearing on which way you approach things at the moment. If there are plans to buy a 'bigger, better' home somewhere else then I would suggets you consider an offset account structure above paying off either properties.

    Do you buy another property now?
    Depends upon your overall LVR and cashflow situation.

    How much will owning two properties outright realise you? While you have a target in terms of number of properties the more important detail is will two properties give you sufficient rental income to live off?  

    Westpac is currently suggesting a couple need about $54K/annum to be comfortable (assuming their home is paid off)

    1.  Can you tell me why is it more tax effective to put more money into home instead of the commercial property?

    2.  Yes thank you for asking as I've forgot to include this in my initial post.  We plan to buy a bigger house which SHOULD be our then final PPOR which we might also rent out the place we are staying at the moment.

    3.  I don't think we will live off the two property as the money generated by them will be used for paying of other investment I might have down the track and the income that I have from my own business will be for my family.

    Regards Sonny

    Profile photo of GetRichOrDieTryingGetRichOrDieTrying
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    September 6, 2011 - 8:40 am

    Thanks Michael

    I think I'm not that comfortable with risk but that's not to say I wouldn't take big risk it it means there would be massive gains in the end.  As for financial I think I'm ok and my job is stable.

    It's good that you have mention investment strategy or lack there of as I have no real plan at the moment except for wanting to own outright two property by mid 40s.  I bought the first investment property on that basis that I had a good job and we were financially  comfortable.  I would like to have more properties but i guess I might be going about this all wrong as I'm one of those people who hates debt, which when I got the loan for the investment property I opted for the P $ I so that I could pay it off asap. 
    But as you have suggested that most investors prefer Interest only with offset account, can you tell why is this so popular?

    As for purchasing property in a good location, the prices that are on offer seems to be pretty high around 500-600 mark around the Melbourne East suburb.

    Jamie:

    Hi Jamie can you tell me why is it better to pay off the PPOR first instead of investment because I seems to be getting a different advice from my accountant which suggest that I pay more into the investment as it can be negative geared and better for my tax.

    Please explain.  Thank you.

    Profile photo of GetRichOrDieTryingGetRichOrDieTrying
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    February 11, 2011 - 11:18 am

    Thanks for clearing it up for me guys.

    Profile photo of GetRichOrDieTryingGetRichOrDieTrying
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    January 14, 2011 - 1:40 am

    Thanks guys

    Well the property is a retail shop, and I just had a quick look at the lease contract which also states that the tenant must pay 100% of all property out going so i guess that will help my part when it goes to mediation .

    Sonny

    Profile photo of GetRichOrDieTryingGetRichOrDieTrying
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    July 10, 2010 - 3:50 pm

    Oh so the Letting fee is a one off.  That's good news as I thought it would be yearly (what a noob I am). 

    They are charging $500 for advertising fee as a package and $3 a month for mails etc if it was to be Re-leased.

    Well the lease as it stands when I take over will be 10+5+5.

    As you've said it seems reasonable so I don't need to feel ripped off then?

    Profile photo of GetRichOrDieTryingGetRichOrDieTrying
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    February 6, 2008 - 2:15 am

    Too  bad Richard is not in Melbourne.

    Anyway I just finished talking to the consultant and she showed me some packages from ING, which seems to be a lot cheaper than most other banks and not much annual fees.

    Have you guys used ING before?

    Profile photo of GetRichOrDieTryingGetRichOrDieTrying
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    February 5, 2008 - 3:25 am

    Ok I've just browsed thorough some comparison rates and I think ANZ might be a better choice in terms of big banks

    Profile photo of GetRichOrDieTryingGetRichOrDieTrying
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    February 5, 2008 - 3:05 am

    I have an appointment with a consultant from mortgage choice on Wednesday but i don't know if they will just point me to some bank that they may have a secret hand shake with already.

    As for other banks who would you guys recommend?

    Profile photo of GetRichOrDieTryingGetRichOrDieTrying
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    October 26, 2007 - 6:47 am

    What would be the benefit of renting as your Primary residential address while buying a property to invest?  The way i see it is that you are loosing your money with rent while having to struggle to pay for your mortgage.  Can some one explain this to me? :)

    Also I don't know it this is good or bad news, but my parents in law have offered us their old weather board house in Box Hill for a good price i think.  The thing is it we won't be able to move in until maybe end of 2008 early 2009, while in the mean time we are still renting.
    Can i ask would it be better for us to buy another house now to live and sell later in 2008-2009 while knowing that we may have the house in Box Hill in the future to settle down for maybe another few years until we can rent it out?

    Profile photo of GetRichOrDieTryingGetRichOrDieTrying
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    October 1, 2007 - 4:59 am

    WOW…all the advice are very welcoming.  Thank you everyone.  I will try to do some more research on what you guys have told me.

    Hi. Simon Macks.  It would be awesome if you would give me some info on that article.

    Tammy:  Thanks for clearing things up :)

    Marc:  Well thanks to my wife as she is a very good saver, since i used to spend a lot a few years ago but now have changed my ways :). 

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