Forum Replies Created
The plan for this year…….
1. Irrigate our last IP(5acres) to increase equity hopefully in the realm of 160k.
2. Start shopping around September for IP 3, four* and 5, with LVR less than 80%
3. Be eventing at 80cm on my new horse by the end of the year
Four. Lose 3-5kg for good AND
5. Go on a proper holiday!6. * Get number four on laptop fixed!!!!
Because you are double clicking them. You can delete one.
In answer to your post, I believe the beauty of becoming wealthy and not needing to work allows you to help others, whether it be by volunteering for various charities or sharing your experience and wisdom, in this case helping people create their own wealth.
I respect your opinion in regards to taking care where money is involved, but thinking all people only give advice for monetary gains is a bit pessimistic. All the professionals on this forum that offer their advice free of charge is testament to that. Of course you should do your due diligence as there will always be dodgy operators, but not everyone you meet wants to rip you off.
Most wealthy people talk about mindset – and I believe an open and optimistic mind will lead you to wealth much quicker than being skeptical and uncharitable. I also firmly believe in karma – so help as many people as you can, then when you need it returned it will be there for you.I was only a whipper snapper back then so what’s RTC?
There was an article in todays west australian that they have conclusive proof that temperatures are rising. They even have data from sea temps, arctic ice levels and atmospheric temps.
So who still wants to keep they’re head in the sand? At least Labor are trying to do something about it, albeit the most awkward, disorganised and expensive way possible!How would you suggest someone wanting to become a broker get started? Obviously the Cert IV, but then where?
Who do think would be the most suitable mentor, and what other courses could one do to learn more about legal and accounting issues?
Would a uni degree in finance make one more equipped to offer advice in mortgage broking, or simply time in the industry?Any thoughts would be much appreciated!
Morangup, 63km east of Perth in the glorious hills!
The Property Puzzle: covers some complex issues re tax, trusts, finance etc
Micheal Yardney’s books cover the basics pro capital gains in inner cities
Margaret lomas’ books are easy reading pro positive cash flow properties
Start with these but any book on property investing is worth it, and don’t forget you can get them from the library for free!
Also ebay often has great bargains on second hand books.
And definately get a subsription to API magazine!Thanks for that ! *Running out door to check loan contracts!*
Terry can you please clarify this for me.
I was under the impression that using funds from an LOC for another property doesn’t mean they are crossed.
Crossed is when you use some of the equity to bump up LVR on new property.
Is this correct?Just out of interest, how do you become a mortgage broker? And Richard where would the 5 years in the industry be involved?
Is there a uni degree or tafe course on offer?Matt… you’re a gem….
James, you have time on your side so I would start by educating yourself,….and you don’t have to pay $$$! A library card and a subscription to Oz Prop Investor mag is a great start, and learn from those who went before you! If you don’t know anyone personally(as I didn’t), networking groups is the way to find them(as listed here). But the fact that you have posted here means that you are well on your way to making millions$$$, don’t let the naysayers sidetrack you!We really need an AGREE button next to Mr Angry face don’t we?
Or if you can spare the cash, get both to do one then you can pick the higher value.
High rental yield is not a bad thing, but it is usually only possible in areas where capital growth is not so good. If you have found a place with HRY and good capital growth, well done!
The reason people use interest only loans is to free up cash flow. As you get into IP 2 and 3, cashflow will tighten so every little bit counts! Also principle repayments are not tax deductible. Investors with a buy and hold strategy are not concerned about paying off the principle as they know the property will double in value every 7-10 years. The property will become positve cashflow as rents go up in line with inflation.
You’re on the right track with you’re mortgage, most people use a line of credit representing the equity in the property to fund the next purchase. You may want to get you’re flat valued, as you might find you already have enough to buy the next IP. The general idea is to use as little of your own money to fund investment properties, because the interest on these loans is a tax deduction. The best place to put your money is in an offset account linked to the mortgage on your PPOR.
I hope this has made sense and is helpful!
Good on you for getting started young and not being afraid to ask questions!nitrodrops wrote:heathers wrote:http://www.excelproperty.com.au 330 for depreciation schedule, visited the property. Excellent, prompt and professional service!Tax Depreciation Schedules from dfg$330
Building Handover Inspections from fgd$325
Combine both for $650
Based on the website, it mentions $330 for Tax Depreciation schedules only.
Inspections will be another $325.
Please correct me if i am wrong
They are two separate services. You don’t need a handover inspection to get a depreciation schedule. The handover inspection ensures the builder has complied and all workmanship is of a high standard.
FYI I got both, and was amazed at how much he picked up that we didn’t notice..ie missing coats of paint, chips in walls etc.http://www.excelproperty.com.au
330 for depreciation schedule, visited the property. Excellent, prompt and professional service!
I think some first home buyers are experiencing mortgage stress as interest rates have gone up, so a great time to enter the bottom end of the market. And because there is so much available vendors are a bit desperate. I looked at a property a few weeks ago and flippantly told the RE agent it was over priced and it was advertised 21k cheaper within 3 days! It is a buyers market so I’m rubbing my hands together!
Personally, and I’m no expert or even close, I believe the super profits tax kerfuffle has affected the real estate and business markets. Confidence has plummeted as we all know WA is hugely influenced by the resources industry. Twiggy’s tantrum will pay off though, as it will lead to negotiations for a win/win situation. I work in the mining industry and can assure you business is booming, there’s more jobs available than people to fill them.
Whether or not you go ahead with THAT purchase raises many questions, and would need more details to give advice. But in answer to one of your questions, I am very confident about the WA property market and am currently looking for our next purchase. I think now is a great time to buy as there is less competition and more to choose from.
If you’ve done your due diligence and still have doubts you should probly walk away, as peace of mind is a lot more expensive than 1750!
Good luck!
HeatherBanker wrote:Terry is right that there are downsides to cross collateralisation. There are benefits though – albiet most people here don’t agree with me.Forgeting about cc and focusing on the split banking issue.
A bit contentious coming from a banker.
I’ve heard the term “free and floating charge” , does that relate here? I’d appreciate if anyone can explain what this is!
Cheers,
HeatherEbay is a fantastic place to buy second hand property investment books and courses at a fraction of their cost!
