Forum Replies Created
Hi all,
I was researching buying property with a SMSF today and came across an API article posted on a financial website. http://www.gatherumgoss.com/wp-content/uploads/2010/01/070-071-Super.pdf. For me it was a good introduction to the concept and the process involved. It also highlighted some pitfalls.
Regards,
Andrew
itsandrew
Go as far as you can see and you will see further.
Thanks to everyone for their contributions. It is much appreciated.
Is the CBA's $500 minimum withdraw for their offset account the only limitation compared to a normal transaction account?
Andrew
itsandrew
Go as far as you can see and you will see further.
Hi Shangrila,
Sorry to hear about your troubles. I can't tell you about the builders role but I can tell you a bit about council. I have just completed a value add IP and it ran 15 months over due to council. We did the whole sit down with the councils town planners, took their advice 100% (even though it already complied with all the planning codes), reviewed it twice just to make sure the ammendments were to their satisfaction, they dragged their feet for 9 months only to reject the application! I was furious because I did everyhting they asked!!! After that they would not negotiate to get it through so we had to go to arbitration – which we won. This took an extra 4 months becuase it fell across the Christmas break. VCAT asked for two things: a Garden Plan and window screens. We submitted the revised plans only to have council reject it again! They didnt like the type of window screens we used. So … that's just life with councils. Thank goodness I had plenty of fat in the deal to still come out in front … phew!
Andrew
itsandrew
Go as far as you can see and you will see further.
Hi scotty,
One thing I'd watch is your access to equity. The figures you show (430k owing, 185k loan) will not necessarily give you access to the remaining 245k in equity. Loans will typically go to 80% of the value of the property but you can go higher with mortgage insurance. Just how high you can go I am not sure (90%, 95%?), I'm sure one of the finance brokers on the site can give you better information on the actual amount of euqity you can realistically access. Just something to keep in mind when you start crunching your numbers.
Andrew
itsandrew
Go as far as you can see and you will see further.
Hi Frugal,
I reckon you nailed it yourself when you said "I suppose it comes down to my ultimate goals".
So … what are your 'ultimate goals' and what's the best way to achieve them? Do you want quick cash, capital growth or passive income? What level of risk are you comfortable with? How much time and energy do you have? etc.
I'd like to ask others … if you had a spare $90k what would you all do?
itsandrew
Go as far as you can see and you will see further.
A good way to check what people's preferences are is to check out the prices.
itsandrew
Go as far as you can see and you will see further.
Hi Jaffa,
Can you explain a little more?
Regards,
Andrew
itsandrew
Go as far as you can see and you will see further.
Hi DWolfe,
I would say the one thing that stings voters into action more than anything else is the 'hip-pocket nerve'. If there is a big scary tax on the horizoin that's going to make the sky fall in then it's time for any government to to brace themselves. This will play on voters minds right across the country even if they are not being taxed directly. As long as they are being told that 'everyone' will pay for it in terms of unemployment, energy costs etc then the people will worry.
I dont like the governments class warfare line about greedy big business (and what's worse they're super greedy miners). It will not resonate with the majority of the electorate. I think australia has moved on from the tribalism of 'workers' versus big business (which the tax on greedy miners seems to try and tap into). Sure elements of it are out there but people are more educated these days and like to think of themselves as more reasonable and enlightened.
At the moment things dont look good for Rudd, and not just because of the 'super tax'. However, we need to remember that Australia is an extremely conservative country as far as changing governments goes. You really have to try hard to lose an election from government. After all even whitlam got re-elected! Keating got back in after a recession we had to have and John Howard got back even pushing his own big new tax (ie. the GST).
Just my thoughts.
Andrew
itsandrew
Go as far as you can see and you will see further.
Hi Mick,
My costs are inflated due to requiring a VCAT hearing, redrafting, additional surveying etc just to get the TPP. Check this thread as I think it has what you want. https://www.propertyinvesting.com/forums/property-investing/value-adding/4331700
Regards,
Andrew
itsandrew
Go as far as you can see and you will see further.
Hi Marie,
Check this thread https://www.propertyinvesting.com/forums/property-investing/help-needed/4332481
There's some good information in it to help answer your question.
Hope this helps,
Andrew
itsandrew
Go as far as you can see and you will see further.
Hi Micklo,
I have just completed a subdivions in Greater Dandenong and it was smaller than 300m2. The main thing they needed to know was that it met their codes/requirements/fancies etc. Apart from residential zones and other 'character' requirements overshaddowing, overlooking, private open space, are all issues to consider and it is worth having an architect to look at a proeprty for you if it is going to be a tight fit.
Good luck with it all,
Andrew
itsandrew
Go as far as you can see and you will see further.
Hi Jodie,
Welcome to the froums!!!! Great to see you thinking about your situation and how to be more savvy with property. I can give a lttle information but I know others can answer in better detail.
In terms of making your money work harder for you some people will ask why you are paying more off the loan than you have to? They tend to like interest only loans with an offset account so you still get the same benefit (as far as paying less interest goes) but you keep more flexibility about how your actual cash is utilised.
In terms of getting ahead it might be worth looking at buying an investment property to meet your investing goals in addition to what you decide with your current property. An income of 130k may mean you have the serviceability for another property. The thing is that you may be able to meet your overall investing goals looking at your situation more broadly. Just a thought. Anyway, some of the more experienced members of the forum will be able to give better info than myself.
Andrew
itsandrew
Go as far as you can see and you will see further.
Thanks ambosh,
The one I am familiar with is the 11 second rule (i think that's what its called). on 400k property rent would need to be something like $3460 pcm. I find it hard to find a property that fits that (admittedly I've only just started looking again). 1% rule is a lot more conservative. Are either of these really a useful guide as a screening tool for CF+ properties?
Andrew
itsandrew
Go as far as you can see and you will see further.
Hi,
I'm just wondering if anyone in melbourne's east is interested in catching up about the tax lien seminar. It might be good to go over the information again.
Feel free to post or PM me.
Andrew
itsandrew
Go as far as you can see and you will see further.
Hi B,
Welcome to the forums! It's great to see that you are looking to take action on property investing but are asking questions and starting a process of due diligence first.
I'm not that knowledgable but read some stuff on these forums recently that looked at some of the issues in buying off the plan. Is it in an established area or a new estate? I was reading one of the regular contributors posts (I cant remember which one or the name of the thread) and he said that he never buys straight from the developer because he wants to know the real price of the property (he's happy to buy property from the person who bought it from the developer). Apparently developers can manipulate early sales to inflate the prices people pay for the rest of the estate, but I dont understand how this happens. I would guess that if it is an established area you can better know what you are getting yourself into.
Also, there are a few threads going around about mackay. A search of the forums should lead you to it.
Regards,
Andrew
itsandrew
Go as far as you can see and you will see further.
Hi Ambosh,
About 300 people attended a workshop on investing in us tax liens. Having a no fee account for banking US checks was one of the key elements for would be investors who didnt want to have their returns significantly eaten into.
$200 to set up an account could be the best deal if you can deposit checks without fees and dont want to pay airfares and accommodation to do it. I wonder if you can deposit checks over the counter in Australia with HSBC or if you have to mail to the payee in the US.
Googling suggests that it's almost impossible to set up a US account up unless you're in the US. A 'loophole' for Canadians may be to do it through BMO, apparently they own Harris bank and offer the service for Canadians.
Andrew
itsandrew
Go as far as you can see and you will see further.
Terryw wrote:yes you can. Offsets are usually just like normal savings accounts – except for CBA.Terry, I'm banking with CBA. How are their offset accounts different? I thought an offset was a simple mechanism to use the balance in your savings account to offset an existing PI or IO loan? I was interested to see you say that CBA is different.
Andrew
itsandrew
Go as far as you can see and you will see further.
Sounds interesting. Is there a limit to 'life'. Is this an unusual offer for a credit card (and who's the CC with)? It sure beats the standard variable rate. Perhaps I could refinance some of my home loan?
Andrew
itsandrew
Go as far as you can see and you will see further.
Hi Palmer,
Can you explain what the 1% rule is. I am not familiar with that one.
Thanks,
Andrew
itsandrew
Go as far as you can see and you will see further.
It seems banking is a bit of a drama. I haven't spoken with citibank yet but if I hear anything different from them I'll be sure to post it here.
Ambosh can you present a cheque for Wells Fargo in Australia or how do you have to do it?
Andrew
itsandrew
Go as far as you can see and you will see further.
