Forum Replies Created
Thanks Guys
…………….
We bought a 3X1 for 290k and did some work for 12-13 days. painted, replaced oven, replaced all taps, new carpet and vinyl, new AC, new gutters and free insulation too. We spent around $6000. The rent before we bought was $225 per week, after reno it is rented for $330 per week. Don't know how much value we added by a small reno.
Interested in vendor finance property, please send me more info.
we can findout the way to set up the contract.
Thanks.Thanks you for support and suggestions and help. We have decided not to move with them. They can move with us in our 3bdr home if they want to. We can offer them our master bed room and we can move in a smaller bed room. We want to support them as much as we can. We are ready to welcome our grand child.
I will keep posting updates. Thanks.duckster wrote:What about putting a transportable cabin in your back yard thus giving them a little bit of privacy and still having Grandparents close by.
When you rent out the PPOR you can still have it deemed for 7 years as your PPOR as long as you do not claim another property as your PPOR for capital gains tax exemption.
If you rent out your PPOR you have Council Rates, Interest on Loan if there is a loan , Insurance and Water Rates expenses to pay.
Why did they move in with you was it because they could not afford rent or to be closer to grand parent?
If you make a profit on renting the PPOR it will be taxed as income added to your other assessable income. If joint owned, half is added to each owners incomes.Thanks for a good option, I did not think of that because there is no room to put transportable cabin. Or Granny flat.
They haven't moved back with us, but they suggested us to move with them in our IP. If we move in our IP with them, there will not be any change in rent. It will be the same $390 per week and they will be our tenants. The benefit to them is they will receive the rent of our PPOR, it will be our loss because it will be our income and we will be paying tax on it. I can explain it to them, Thanks DUCKSTER, I did not think the income of rent from PPOR when we rent it out.Hi,DWolfe,
Some more info…………….
We live in 3X1 and bed rooms are not big enough so they moved.
4X2 IP's lease expires in April 2010.
Our daughter in law is always good to everybody. Always respects us and she never wanted to move from our house but she had to go because of her husband's pressure. My wife and daughter in law get on really well. She is 8 weeks pregnant and my wife visits her after work, take her shopping and cook food of her choice and trying make her smiling all the time. She also talks to her parents every week. I don't see any problem between them.Thank you very much for your support, advice and inputs.
Hi Marie123,
We bought in Perth, Langford 6147. It is not a great suburb to live in but good for IP, i think.
Within one month, the property prices gon up and you can not find any 3BDR house (with 700m2 land) below $300k. I buy old properties, do some repairs, replace carpet, painting and rent it out. This strategy works for me. Yes, there is not much depreciation benefit but it is ok a slong as it gives me good rent and Capital growth.
Thanks.Hi,
What I would do? I would save as much as I can to pay of debt and meanwhile read some more books/forum topics/news letters to enhance my property knowledge.
We can draw a plan for paying off debt ASAP if we have data of your minimum payment requirements for each debt.
Or easiest way yo contact your bank and ask for consolidation of debt and find out how much time will take to pay off if you start paying $750 fortnightly.
Regards;HI, Weekly $95 means $4940 per year. I bought a property in Dec 09, it was rented for $225 only. We did some painting and minor repairs and rented for $330 from yesterday.
So your first step would be …………………………….Rent increase notice…………………………..Best Luck.Investment property forums– abbreviations
IP- Investment property
LVR- Loan value ratio
PPOR- Primary place of residence
RE- Real Estate
OPM- Other people’s money (Borrowed)
LOC- Line of credit
SMSF- Self managed super fund
PM- Property manager
OFI- Open for inspection (open home)
LMI- Lender’s mortgage insurance
CGT- Capital growth tax
FHOG- First home owner grant
DHA- Defence Housing Australia
DSR- Debt service ratio
Wrap- Vendor finance arrangement
R&M- Repair and maintenance
P&I- Principle and interest
CFP- Cash flow positive (property)
NGP- Negatively geared property
ROI- Return on investment (( Rent $15000/investment $300000)X100)= 5 %
NRAS-National Rental Affordability Scheme
GFC-Global Financial Crisis
ATO-Australian Tax Office
IMHO-In my humble opinion
BAFO-Best and final offer
CGA-capital growth averaging (strategy)
DINKS- Double Income No Kids
LEO-Living On Equity
BAS – Business Activity St
CRAA- The Credit Referencing Association of Australia
BAS – Business Activity Statements
Hi Jimmy,
Property price will go up and if you wait for a year or two, you will be paying more price as well as interest. Double loss. Check your monthly budget, How much is rent and how much is surplus at the end of the month (saving). For example, In 2007 I used to earn $1000 after tax. My rent was $350 per week and other expenses like fuel, movies, groceries, school fees, insurance etc etc were $400 per week. So we still had $250 left to spend. we bought my PPOR in Feb 2008. With Gove subsidy $7000 and our saving of 20%, we bought our First home. We were paying $530 per week. There are some online calculators, we used to calculate loan, repayment etc.
Now circumstances have changed, wife also works, mining job so we bought 3 IPs.
My advice: Just Do It.
You are 100% right businessglobal. We can not drag a dead horse, or take the horse to water and force it to drink. I stopped thinking about it.
When he declined to take over the property, we (me & wife) showed him some investors examples and Jan Somers quotes the avarege porperty price double in 7-8 years. I did some claculation and showed him that how property price will go up, rent will go up and bank instalment will go down. He did not understand. He said me "Pease don't offer me this type of dodgy deals". Are hundreds of investors wrong and stupid, they investing in properties?
I gave UP.
Thanks for supprot.Hi,
Thanks for supprot, I really needed it. Pressure from both ends. Wife wants me to do whatever SON wants and Son doesn't want to do.
XYA- My son can not buy his own and apply for FHOG because his income is $40 K and bank won't consider for $350K loan, We do not have equity left.
Sonyasal: About our culture, My father has 4 sons, he built 4 houses for us and whatever agriculture land he had, he divided among us. We all 4 brothers work and we support our parents. They receieve pension and it is more than enough so father help my younger brother as he has only one income. But now we are here and I am 48 and have strong feeling for family, our culture but young husband-wife (son and daughter in law) have lost these values (I think). But
DWolfe is correct (I think). The way of life is different and we have no choice but accept it.
Many thanks for your support guys, It is not only investment forum but it's great extended family where forum(ers) help each other.So, I made him upset because I said him, Tax deduction is based on my earning, If I stop working, there won't be tax refund. Did I do wrong? My wife is also upset and saying, it is my fault. I push our son away from us but she does not understand that SON does not want to take responsibility. I think TAX is only an excuse. If we give away TAX refund, He will ask something else.
Guys………..What would you do? If (1) You were a father (2) You were a son in this scenario.
Thanks
