Forum Replies Created
He talks well & looks 30 years younger than I thought! Should I adopt him? [
]The government doesn’t give away IP tax deduction claims for nothing. It takes back so much money in stamp duty, GST … It also generates heaps of work for building industry to the point where there is an acute shortage of trademen.
I know +ve geared property investment is a safer way to invest but I can’t find any around. I’m considering to sell my 2 -ve geared IPs to buy few +ve geared IPs but found it’s hard to find any around. I know there are plenty in country towns faraway but I want to see before I buy & I can’t travel much.
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]Hi Calron
You can find the answer in https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=2875
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]It’s a very good idea Sooshie. I hope to see more of this. Thanks[
]Not me!! I will be forced to sell my IPs. Can’t afford to pay my homeloans. I don’t think we can ask for much higher in rent either.
Huey
The cost will become part of the cost for depreciation.
Hi D
We had bad tenants in our negative cash flow IP. The agent didn’t even let us know what had happened. We found out from the monthly rent statement that the tenants had already left. We rang the agent many times & didn’t get any return call for 2 weeks. At the end we got hold of 1 staff. He told us the tenants were evicted out.
We visited the place last weekend, a screen door was ripped by their dog, a window frame was cracked from rain water, the carpet looked old … We cleaned up the kitchen, bathrooms, watered the garden, the grass are all dried up in back garden … We replaced the water sprinkler, put in toilette paper rolls … It was a beautiful new house over a year ago. [
]We always have very good tenants in our positive cash flow IP which we have managed ourself. The last couple just moved out to their new house. They gave me goodbye hugs & kisses. [
]So it depends on your luck.
Huey
Thanks All,
My main reason to put my +ve geared IPs into a Trust is that I can distribute its income to my 2 children, supporting them through university. I assume as a retiree with no business I don’t need assett protection (?).
A Discretionary Unit Trust seems to be good for -ve geared IPs & it works the same way for +ve geared IPs as a Discretionary Trust. I assume the DUT will cost more to operate. I’ve read some threats about Trust but I’m still very confused.
My 1st IP’s rental income is reasonably good $340 – $360/wk (I think its value is around 280-290K). Its capital gain is so so because it is in the same complex with serviced apartments. Body Corp rate is high because the complex has resource facilities like pool, gym & sauna. Prices of new, newer 2br apartments on the same level in other building around ACT CBD are from 330-380K with the same rental income but lower Body corporate fees as they have no pool, gym .. etc…
I’m still deciding what to do with it. My financial adviser told me to keep it. His point is if it pays for itself why sell! I will talk to my accountant. Both of them didn’t mention anything about trust when I met them.
[]Huey
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] Sorry, OWE $425K (not own) $425K []Thanks Terry. It seems a good strategy. I will think about it.
Sorry for my bad English Neo. “own $425” = $425K mortgage with the bank. I’m an “over protective mother” but can’t help it. They can pay back the deposit later when they have extra money & only if I need it. You know how I feel when you have your own children. [
]Hi Richmond,
You seems to have plenty of spare equity from your PPOR & IP1 ($ > 20% of each one’s value). If it’s enough you can use equity of this 2 properties to secure a 105% mortgage for the new IP. (even without having to pay mortgage insurance), unless you already used it to service your recent purchase.
Which Bank lends me 105% of my IP at < 5% interest, 1st year introductory rate, after that it’s back to the standard variable rate.
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]Huey
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