Forum Replies Created
Obviously stamp duty savings on a new home as you only pay stamps on the land not the house and then you have depreciation which would be far better in a newer home. Have a loook at what ameneties the new area has or is going to have and how long it is going to take to get up to scratch, as this can cost you huge capital growth if the area lacks shops, schools, community feel. Be wary developers will tell you anything to get you to buy make sure its in writing. When costing a new home dont forget landscaping, driveways, footpaths, window coverings etc On the other hand you have an existing area close to all ameneties and water and your only spending $30,000 to $45,000 for the house, add another $20,000 for a reno and you've got yourself a good investment no building time maybe an 8 week reno if needed. I will always buy where there is less land as this is the asset that appreciates not the house, so the tighter the area is for land the greater the cap growth long term….
i didnt think you could pay pay off any of the principal on an IO loan??
If you made a lump sum payment of $5000 on a $110,000 IO mortgage wouldnt that just pay the interest not the principal so therefore paying the interest on a $110,000 mortgage not $105,000??
Thanks for the response guys that clears that up, need to make some calls. Even if i cant seperate them i think they would still be a good buy.
I also have two small dogs and my home is like a display home, it all depends on the owner of the said dog. I'm looking at renting a place for a while so i can invest more and hope that i can find a decent property that allow pets. Making people pay more money to have pets is just going to annoy them and they will move on you either allow it or you dont.
Thanks propertypower, yeah ugly duckling is great puts everyone else off!!
Thanks for your repy Marc the problem with looking at other areas means buying further from the city than we want to live, i'm thinking rent where we want to live invest the money we have in a high interest account until we find a deal that looks good then buy.
can rent for around $250 PW which will also enable us to save a lot more money than the $480 a week mortgage we pay now. Renting is always something i've contemplated whilst owing IP even though the rental market has jumped it still works out cheper to rent and own an IP than to have a home loan.At the mmt demand is really outstripping supply which puts the ball well and truly in the vendors court, the area i'm looking at purchasing in has gone up by about 20% in the last 9 months. I was looking at purchasing a house to renovate for a quick sale and profit but in this current market thats not going to happen, given the increase in capital growth. So what to do? i'm now looking at sites with possible sub division possibilites (battle axe block) so i can reno the existing house then build out the back. This would make it worthwhile although i still have lots of homwork to do costs etc
2. Relax most electrical & plumbing jobs so un-licensed handyman can do. Also open the flood gate to foreign tradesmen
as tradies in most countries are not as spoiled as in Oz. (In Mexico they have to queue every morning for jobs to earn few
dollars a day !)
3. Reduce the length of apprenticeship to one year. There is not much to learn in plumbing and electrical.Great attitude!!! I'm a qualified electrician and find your comments disgracefull, i come accross dodgy do it yourself work all the time which endagers my life and the occupiers. Have you ever recieved an electrical shock before ttman i dont think so. Why dont you ring around and go with the cheapest quote you'll be getting shocks off your taps, lights will start falling off the ceiling,no certificate of safety etc you get what you pay for. I would say do your research pick up the phone and start getting quotes its pretty simple.
I would rather keep the property rented out and sell in retirement or if i really had to. The loan would be interest only and fixed. At least by keeping the property you are still gaining capital growth whilst also using the equity to buy other investments. I would only advocate selling IP properties in order to pay off your PPOR (bad debt). CGT and agents commissons drain profit from the deal.
Personally, I'd prefer to own $500,000 of unencumbered property assets than $6,000,000 of assets with $5,000,000 of debt. If house prices do double every 7 to 10 years (I don't expect them to), why would I need $6 mill of assets anyway? My $0.5 mill will return $500k over period one, $1 million over period 2, $2 million over period 3.
If your are not leveriging the banks money you will take much longer to build up a substancial portfolio if property goes up say on average 10% PA then 10% of $500,000 is $50,000 as aposed to 10% of $6,000,000 $600,000 no guessing on which option makes you richer.
There must be a list somewhere that details products containing asbestos, or a general guide. If any one wants to post their experiences with asbestos including eg lino, rough date on age of home etc may help people diagnose a potential health risk, prior to being exposed.
