Hey Terry,

Do you know why it was rejected? Do you recommend this type of debt recycling for everyone that has non deductible home loan debt? My only worry would be your really relying on capital growth on your IP…?

Do you know if the ATO would allow it if you were putting rents/wages into a linked offset account on your home loan rather than repaying directly on loan or LOC?

Jacqui

Hi propertymistro,

I have organised a change in strata management companies as the company was not a local company and hardly any of the owners could attend the meetings. To be honest it was alot of work to do as there were 17 units and I had to contact all the owners and arrange a meeting with all owners to vote on the change. You need to get over 50% for the change and then you have to get a letter drawn up issued to the current strata managers advising of the cancellation and have owners sign etc. That sums its up briefly. I would recommend you speak with the new company and ask them to issue you template letters etc which will make your life easier.
Just a word of caution – read the new management agreement very carefully. You can end get up with a worst deal if your not careful.

Jacqui

The areas NHG listed are all the main housing commission areas. Kooringal also has Housing Commission properties. Mount Austin would be the pick of the bunch as I have seen greater capital growth there of late. Tolland is being cleaned up however that may take some time. The prices have gone up abit since last year. You used to be able to secure one between $100k-$130k, Mount Austin is now approx $140 – $155k. They will need a quick reno for approx $10k – and then would fetch approx $200 – $240 p/w. Mount Austin will get the better rent in comparison to Ashmont and Tolland. Mount Austin properties may even get $250 depending on the time of the year you lease it. Just make sure you get a building and pest report done, I can recommend some people if you need too. Let me know if you need a good Property Manager too.

Hope that helps a little tonyf897

Jacqui

Hi,

Does anyone have a copy of the latest Carly Crutchfield Pro-Develop Program (with home study DVD/manual course) and  tickets to the live 3 Day Boot Camp? I want the feasability software and Vendor Finance contracts included.

Please PM me or email me [email protected] to discuss.

Thanks,

Jacqui  

Hi bouncecf,

Alot of investors will be turned off by a pool due to the potential maintenance and upkeep costs involved as majority of tenants wont look after it. So as a result it could restrict the marketability of the property as it likely would only appeal to owner occupiers.

Jacqui

Does anyone know if there is a maximum amount of 100% offset accounts you can get for free under the package with Westpac? I know you can only have 1 account per loan however if I was to take out another investment loan with Westpac would I have to pay a monthly service fee for another account? Is it possible to link the existing account to a new loan?

Hi littleaussie,

What are some of the areas you have purchased in regional centres? If your buying properties for $150k are these ex-housing commission properties? As you are buying in the lower end of the market do you have issues with attracting good tenants?

Jacqui

Hi Woodie,

I would highly recommend you listen to Terrys advice as he opened my eyes to the disadvantages of LOC's and advantages of 100% Offset Accounts. I used to read how good LOC's were for investment properties however I now agree with Terrys opinion that you are far better off with an IO loan with a 100% offset account over LOC due to the all the tax implications of using a LOC. I will only use a LOC for assessing equity (drawing 20% deposits for next IP purchases).

Thanks again to Terry .. and Richard (Qld007) who always give the most helpful advice. I am very thankful they answered my previous thread on this topic and gave me their honest opinions as I would of structured my IP loans using LOC's and it would of gotten very messy in the future.

Just to confirm – I am about to take out a rocket repay investment loan with westpac for $304k with 100% offset account as we are getting a very good discount of the rate and no fees, does this product offset the interest daily? The lender didn’t give to many details on the product and I was hoping someone could tell me if there was a minimum balance required?

Also, we have opted to use an interest free credit card with westpac to get reward points as we will do all our living expenses on the card and pay closing balance before due date. There card is 45 days interest free with points or I could get a 55 day card no points with travel insurance? What would be more benefical? Or am I best to pay the annual fee with CBA and get 55 int free with rewards and travel insurance etc?

Hi Mr5o1,

I enquired on the scheme and they forwarded me calculations based on a set purchase price. The properties are quite negatively geared throughout the financial year until you lodge your tax return and get the federal and state government rebates. It has its pros and cons it just depends on your financial situation and if you can support the negative position until tax time. After you get the rebates it will likely turn the property cashflow positive however I found when I played around with higher interest rates it was still negative after rebates. This turned me off the idea, I can forward you the email a company sent me with some figures and you can put in your income etc. Another downfall I think it will negatively impact on your servicing when you apply for another IP loan as the banks are only using the 80% market value rent not 100% at the moment.