Forum Replies Created
A lot of no deposit home loan packages (e.g, Devine) are also located in lower SES areas.
Mortgage Hunter is correct…there is no tax advantage in using this strategy.
Originally posted in Steve’s email:
the 30 year low interest rate environment in Australia is now facing the dawn of a new trend. You just cannot ignore that US interest rates have bounced and are now heading higher. Just as New Zealand has a premium on interest rates above Australia, so too does Australia have a premium above US rates. Sooner rather than later (maybe even tomorrow!), our interest rates WILL and MUST go up.As we all know the RBA aims to keep inflation between 2%-3%. If it looks like it is going outside this, the RBA will generally act. I think the issue the RBA is most concerned with this time round is not so much historical or global context but local pressures on increasing (minimum) wages.
So remember to say a big thank you to your nearest union rep when your mortgage repayments go up this year. [jerry]
But I agree with above posts that if 0.25%-0.5% rise is going to be a problem for you, then you were probably over extended in the first place.[bawl]
Excellent tip depreciator…sounds like a good way to think about it. Thanks.[biggrin]
For the most part it seems as though my business partner may be onto something….[blink]
Although, I could imagine getting something out of a workshop where you were learning a specific skill or highly technical information (e.g., a complex financing arrangement).
There are a number of properties on the market in my area that are 4-7 bedroom properties that vendors are trying to sell as “ideal for student accommodation”. We are close to major uni & transport is good so no probs there.
Vendors say you could rent each room for $100/wk and thus have income of $400-$700 per week. But does it actually work this way? For example, if you were student 5,6 or 7 (in the 7 bedroom example) would you be that keen to move in with 4 other people? Does any “in-fighting” in the group of 7 lead to people moving out more frequently? If no studets are available, would you need to consider the broader rental market ($250-$300 per week in my area).
Also, if you had a property you could rent for $400-$700/wk, why would anyone sell it?
Does anyone have more long-term experience with “multiple” students (4 or more) renting in the one property?
Kate,
I agree with yack & Brisbane04.
I know you have said that keeping PPOR and selling 2 IP’s would only allow you to cut down to 4 days per week at best but maybe that is the most realistic thing at the moment. I’m not sure all of what you want to achieve can be done in one go.
Good luck.
A few years ago there was a big discussion over a guy who wanted to raise $15,000 (for a holiday if memory serves correctly). He put an add in the paper saying that he was looking for 15,000 people to lend him $1 each – and he got it!!!
I can’t remember the eventual outcome though, but I haven’t heard of anyone doing it since.I know a guy who paid $77 for a baseball bat a few years ago…he says it was a great investment and has paid for itself many times over.
The Feb 2005 edition of Personal Investor magazine has a good article covering HECS issues on pp.36-38.
Unfortunately, it says that there are only 3 ways to avoid HECS debt:
1. Leave the country straight after your degree, cease to be a resident for tax purposes, then return to enjoy retirement in Australia when no longer earning an income.
2. Make a paltry income for life. If you never earn above the threshold amount – $35,000 in 2004-05 and $36,184 in 2005-06 – you will not have to repay your debt. The income amount will be indexed every year.
3. Die. your debt will not be transferred to anyone.
The discount for upfront payment at start of degree has dropped from 25% to 20%. Discounts on voluntary repayment afterwards has fallen from 25% to 10%.
[scholar]
Given your cash flow situation, I would take option 1 that you proposed…sell the land and cut losses.
I know it sucks, but I think getting (and staying) wealthy is as much about keeping your losses small as it is about making good investments that return big $$$.
And $35K (whether it is capital loss or lost interest repayments) is not that much in the big scheme of things. eg, it is only about 6% of the $550K your PPOR is worth.
Try to think of it this way:
what will your net worth be when you retire?
let’s say it was $1,000,000.
Would it matter if you had $1,035,000 as opposed to $965,000?I think there are some townhouses on the southside of Bris, in and around Wishart that allow dogs.
I would hold on to the property while you take your holiday![biggrin]
I reckon you should set yourself so that you can enjoy your money, if that is your goal. The kids can fend for themselves. i’m sure they’ll survive.
[biggrin]correct about the offset account, it’s definately the way to go…some people have been recently cuaght out by not having the offset account.
sorry nowork,
looks like plan A is a loser..[whip]
anyone got a plan B to help nowork retire early???
You can write mutually beneficial agreements without invovling solicitors….thank GOD!!!
(I deal with solicitors all the time in my day job, so i’ve earned the right to have a dig at them now & then).[biggrin]
Muli….I agree with AUSPROP.
But unlike Torachan, I have no conscience when it comes to investments. Do whatever is in the best interests of you and your gal. Have a read of Feb 2005’s AFR Boss Magazine article on page 44:
“…sure winning isn’t always pretty; you may have to screw your competitors or lay off a thousand people, but when the cash is counted would you rather be on the wininng team or on the team that failed beautifully?”
Happy hunting !!![smash]
I’m gonna go out on a limb and say Mt Gravatt!!! [8]
Unannounced…maybe you should buy the property and pay g7 to manage the property & take care of any problems for you. [axe]
