Forum Replies Created
Daedalus,
Cheers for the feedback. Much appreciated.
I read yesterday that Rio Tinto will be exhausting their current mine by 2011 / 2012 and they are beginning construction of a new mine set to commence production in 2010 which should have enough resources for the next 35+ years.
How does Clermont stack up against Dysart and Moranbah in comparison if anyone knows about that region ?
Also how difficult would it be for someone in Melbourne to invest in the region without actually going up there to close a deal and have their IP ready in order to get a decent positive cashflow ?
any feedback would be great.
Thanks for the info everyone. Great information for someone looking to getting into the market. Cheers.
Cheers Richard.
Makes sense for the long term. We currently have our mortgage as 45% fixed at 8.25% and 55% variable at 8.77% both principal / interest with an offset account. Should we changed this to totally IO or just change the variable portion only to IO ?
Could you email me rather than posting here if possible.
Sorry to cut into your thread KC1, but you seem like you're in the same situation as me too. Thanks for posting what you've posted.
Thanks.
Duckster,
Thanks alot for responding. Some valuable information to consider.
From what I know of the Broker we used he's also a Financial Planner. I guess it's always good to get a third or fourth view.
Whichever way we look at the situation we're going to incur costs of some sort. If we keep the property, we are going to have to pay roughly $200 per week from our pocket unless within the next 9 months rental prices go dramatically skyward for 1 bedroom apartments. If we sell the IP, we incur CGT + Agent fees etc and will most likely walk out with what we started with our $15,000 deposit. Nothing gained at all. The more I read through Steve McKnights book "0 to 130 properties in 3.5 years " the more I get confused about trying to go forward with property investing, when if you don't have some sort of capital behind you to start off, you're always going to be in a negative situation and be in the 92% who own 1 or 2 properties and continue working hard for the rest of their working lives to pay for them. Not my idea of fun.
I look at different property for sale around different parts of Victoria and apply Steve's 11 second rule to see if it would create positive cashflow and with the market the way it is, finding that is very difficult. I fully understand aiming for positive returns to create a passive income, but initially how can you start out positive if you only have equity to work with ? I've studied the Negative Gearing tables in the book and it all makes sense, but Steve still claims that it's not really the way to go for long term wealth if you want passive income. I totally agree, but how do you get a start then ?
Would like to know how other people have started furthering their portfolios without starting from a negative situation.
Cheers.
Qlds007 wrote:Hate to disagree with what other forum members have written but normally I would recommend an Interest Only with a 100% offset account for clients and their PPOR loan.
There
Richard can I ask why you would suggest this for the mortgage on a PPOR ? I thought that that type of loan was really used for IP's more so.
From calcs I've done with our mortgage at an Interest Only Loan we'd end up paying back in interest an extra $300,000+ for the term of the loan even though the repayments are less per month than what we currently are paying.
The though of doing this had crossed my mind, becuase we have now lived in our PPOR for more than 12 months which would significantly reduce CGT if we were to have it as an investment and sold later on.
Look forward to your reply
