Forum Replies Created
- Terryw wrote:HC
You shouldn't be paying spare money into your LOC as you are paying down the loan..
good thing there is not all that much "spare money"! lol (lots of kids and cars and o/s holidays takes care of that)
celmel wrote:Is this a good way to go ?? what are thre down falls ? We are very financial , never missed a loan payment have no other debts besides our Home Loan , this will be used to purchase rental Properties , the amout is $ 430.000 if the properties re empty at any stage we can still aford to pay the loan.
Any thoughts ?Hi Celmel,
we have a very similar situation to you that is set up beautifully, where our "investment property" LOC pays all the IPs bills, rates etc, and recieves all the rentals. It is also the source of our 20% deposit plus costs for any new investments. Any "spare" income from our day jobs we have gets chucked into there as well. We then have a different LOC for private expenses.
If costs to purchase are about 5% of purchase price, then this LOC has to supply 25% of cost of each new IP. Therefore the outstanding balance represents 1/4 of the possible total value of new IP purchases we can make. This is good so we always have a clear idea of what our limit is when searching out new properties.
Tax time is easy becasue you just allocate all the various ins and outs to each IP and figure out how each IP is doing.
In summary, I totally recommend it.
Tamworth NSW. Country Music Capital. Yee haa!
(actually when the festival is on a lot of Tamworthians leave and rent their homes out as holiday rentals for as much as $4000/week-too bad it is only for 10days/year)
well if you are already paying the power bill, what is the problem?
Yours is just a gross feed vs net feed question, I think, which is just going to be a state law (as opposed to all the stuff about second lines etc).
Look at this website, which outlines stuff for VIC:
http://www.energymatters.com.au/government-rebates/feedintariff.php#victoria
Aim low and go slow.
IN other words if you calculate you can afford something worth $350000, aim lower, eg $250000 or less (eg regional) and get a feel for the whole buying/managing process.
No point plunging in up your eyeballs in debt at 21, but definitely worth plunging in up to your waist.
You hvae to factor in the unknown, like interest rates increasing, vacancy periods, other unrelated costs you have (eg stuff, kids, spouse etc). Then you will not be pushed financially to the point you get forced to sell when you don't really want to just to stay afloat.
I prefer YIP
Can you just bump up the rent and do it the normal way (offset against usage?
ELJ wrote:There is a house that is up for auction on May 29 that I would REALLY like to buy. They are looking at offers of $1.5million and up.I don't have a permanent job, nor do I have any cash.
I would love to be able to buy this house before it goes to auction and figure that about $2.2-2.5million would be sufficient to take it off the market immediately.
Any ideas of how I might be able to fund this? Anybody out there looking to donate to a VERY worthy cause who needs a house for comfort and security and the space to live and breathe and work?
While this is a long-shot, I am quite serious about my request and would love any help, advice, humour that anyone has.
Thanks!
EmI have a job and some cash and I would have buckleys getting that kind of money. You'd have even less chance from the sounds of it.
Also I wouldn't call that a VERY worthy cause. I'd call it a totally unrealistic waste of money. Someone else's pipe dream.
My suggestion is aim lower. It is free to dream. Everyone has a dream, and it gives you energy when you have got a good one. But I think your dream needs to be tainted with realism.
Good luck
Marisa wrote:I believe there are currently 85 houses on the market for rent, that is a bit of a worry? Wonder what is happening here?I think you will find a lot of those 85 houses have already been let successfully and not taken off the realestate.com website. One of the ones still on there is a house we own that was rented out in late Feb and it is still listed as available. It was snapped up within a week of being listed on the net for the advertised rental
What about a line of credit loan for the maximum amount of available equity?
That way you only get charged interest on what you use, while the rest just sits there available but not accruing interest.
Mr5o1 wrote:Considering the ramifications for CGT you have a tough decision to make… Whatever depreciation you claim over the years, will reduce the 'cost base' when your capital gain is calculated. Your effectively claiming small portions of your purchase price over the years, and thus wont be able to claim those portions against the sale price later. Usually the 50% discount will counter-act this, so that in the long run there will be a benefit to depreciating. In this case its hard to say.. because in some years you may not get any tax benefit from claiming the depreciation. Depends how likely you are to sell.. and what the other income will be in the intervening years.Thanks Mr5o1. Comprehensive reply.
Clarifies it a lot, actually.
Turns out my non-working spouses 2 IPs are so extremely positively geared that the depreciation will be worth it, and even more if she goes back to work which is likely. The CGT is an issue I suppose except that the here-and-now of claiming depreciation seems too appealing at the moment. I cannot see us selling either place in at least the next 5 years.
keithbuzzlightyear wrote:…. (Fortunate for us, we have cleared our Credit Card debts, we have no foxtel, no big weddings to pay off, no BMW to finance – A simple Japanese car is all we need!) I have looked at a lot of Buyers' agent, property investing Co (e.g. OZINVEST) and of course, many DIY investors here. My question to the rest of the forum for me, ….So it really comes down to what are the various reliable resources I can use engage. Any of the above much appreciate. I will too, keep everyone updated on my progress. My 3 months starts, NOW
Yeah good start.
I am at the end of the 3 months you referred to. At the start, I knew next to nil. Then by a peculiar quirk of fate (a broken bone in my foot, of all things) I could do nothing except lie around like a whale and read. So I read every investment article, magazine and book I could get my hands on for about a month (fitted in around fulltime work and lots of kids). At the end I know a lot more than at the start, but I can see there is a helluva lot more to learn. Education is where it is at. Some were good others were crap.
I would recommend reading
- Steve McKnight's book "From 0-130 properties in 3.5 years"
- Margaret Lomas "20 Must ask questions for every property investor"
- Robert Kiyosaki "Rich Dad Poor Dad" (start with this one if you've never read it. Almost all the other books quote it. Inspirational and it makes you want to get going.
- Buy current edition of "Your Investment Property" magazine from any newsagent. Apart from v good articles it has excellent tables in the back that detail growth in every suburb in Australia, vacancy rates, rental returns etc etc.
- Using whatever suburbs you narrow down on from that magazine, look them up on realestate.com.au and ring a few agents of good prospective properties. They often seem to have a few homes not yet on the internet that may be even better than the ones on the website.
- I am personally in favour of buying all over the place (to spread the risk, lower the land tax in diff states, capitalise of different growth rates etc) but like I said I'm in the embyonic stage of property investment myself and that idea has only come from reading some of these books. (Eg Margaret Lomas asserts that she always buys sight unseen, but always gets a building inspection done, and a rental appraisal etc. That way she remains objective and unemotional and people more trained than her can do what they are good at, like telling you whether it is well built or not. She also buys in different states as well, without seeing. Steve McKnight, however says you should inspect them all and even has downloadable inspection templates somewhere on this website).
So we put offers on a few places around the place and now have 2 IPs with more being scrutinised.
I hope this helps. I have also asked the question on this forum re whether using a buyers agent would be better as my work is a bit consuming, but if you have time to spare, that is my 2c worth. I go it yourself for a while first and learn as much as you can.
You'd trigger a settlement and have to pay stamp duty I'd say which would take the shine of that otherwise great idea.
(Not an expert)
Sydney first,
Sydney maybe second, then
Anywhere in our great countryAnd thankyou for your reply.
It is obviously an expense but according to recent SMH article this week up to 40% or properties are sold unadvertised in the general media (due to factors like vendors not wanting 200 people tramping thru their homes every weekend).
I do not have the time to do that plus I live in regional area so even more difficult. Hence, the interest in gearing my time in this way. But I'm not keen to do that without independant recommendation from non-aligned people.
squidgie wrote:… I don't know to much on the demographics (or how to find recent stats on the net for that matter. There are a few areas which I have my eye on such as Huonville and Mornington.If anyone has any advice or knowledge to help me would be greatly appreciated
Cheers
Try this:
http://www.domain.com.au/Public/SuburbProfile.aspx?searchTerm=Huonville&mode=buygives pretty good demographics. To look at any suburb in Australia, just change the top R box
Other worthwhile thing is to type in the suburb and find newspaper of the area to get an idea of what's going on.
I have been to Huonville and it is a pretty small but attractive little place.
thirsty wrote:Hi Everyone, would like to introduce myself. Have been reading this forum for about 3 years and just got the guts to join. ……..Thanks for reading and thanks for the education over the past yearsWelcome thirsty.
Hey that's quite an impressive time to get the guts up!! ( I joined the day I discovered its existance).
Thirsty for what?
This site has a lot of places populations in a spreadsheet over several years worth of Census. Most recent was 2006 but it shows trends.
I used to stir my Dad up by telling him that retirement is spending the afternoon wondering what to watch on TV in the evening so you have got something to think about in the morning.
god_of_money wrote:I strongly believe that property in Sydney is very cheap despite 20% increase in price. BUY BUY BUY
is anyone out there worried about a "bubble"?
When I see things like the 20% increase, I think 3 things:
1 damn why haven't I got more properties by now.
2. Is this all a big 'bubble that is going to burst and leave me trapped if I buy in now?
3. Does this 20% increase represent a "growth spurt" (biggest since 1989, apparently) that will then be followed by flat-lining for the next 10 years, so what's the point if I've missed the boat?
interesting.
I wonder is that due to Aust average earinings being high or due to house prices being low? I would be hardpressed to think house prices were high in Morocco.
There's a lot of rich countries down the bottom end (though what is bangladesh doing there?)
