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  • Profile photo of glengaryglengary
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    @jamesbi
    Join Date: 2014
    Post Count: 45
    April 10, 2014 - 9:15 pm

    Wow Steve Mc knight replied back to me, I feel honored, I just read your book recently which brought me to your forum awesome.

    Oh ok I understand steve, so it is the interest on loan that is deductible. So for example if I wanted to buy an IP as my first purchase for $500,000 10% deposit with offset interest only structure. Live there for a few years, I could pay off interest on loan and put all my spare savings in offset account for my next property and than rent this one out. I would be able to claim back interest on loan of the $450,000 ?

    so for example if I borrowed 450,000 at a 5.88% paying monthly $2205 x 12 = $26420 I could claim against this amount ? this is awesome Steve I feel privileged to have a comment replied by you , didn’t expect this

    Thanks Glen

    Profile photo of glengaryglengary
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    @jamesbi
    Join Date: 2014
    Post Count: 45
    April 10, 2014 - 5:48 pm

    where is the search bar? I thought this was a forum why is it so complicated

    Profile photo of glengaryglengary
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    @jamesbi
    Join Date: 2014
    Post Count: 45
    April 7, 2014 - 3:17 am

    Hey Catalyst

    Thanks for the reply, Oh I see I am very new to this and I better keep having a read and become more knowledgeable at this. I am reading other forums on here about setting up as IP and interest only loans with offsets and your remaining principle being tax deductible so I assumed there was ways to set up your properties IP or PPOR cheeky Sorry I am very new to this and lack very basic knowledge.

    Profile photo of glengaryglengary
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    @jamesbi
    Join Date: 2014
    Post Count: 45
    March 27, 2014 - 10:25 am

    Oh thank you for your great advice Jamie it was very informative. Jamie can you explain to me tax deductible and non deductible and how it relates to the property investing I always see people on this forum mentioning it and it is very confusing. 

    Thanks Jamie

    Profile photo of glengaryglengary
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    @jamesbi
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    March 21, 2014 - 10:37 pm

    Wow thank you Mark the information you shared is awesome, I understand now , its a matter of doing the right homework before you buy, so off the plan could be great if it features everything you have mentioned so there is really no right or wrong answer , its really up to the knowledge of the investor or buyer? Same goes for existing properties if homework is bad same problem?? Am I on the right track on mind frame atm??

    Profile photo of glengaryglengary
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    @jamesbi
    Join Date: 2014
    Post Count: 45
    March 21, 2014 - 6:17 am

    Hey Shape, thanks I think I understand now, so off the plan is basically the developers project he develops everything fixed the way he wants it to be i.e floorplan, which you cannot adjust. And home and land package where it is not off the plan gives you the freedom to choose how you would like your home developed?

    So basically off the plan developer builds his own project, as the buyer we have no say on how it is developed? Doesnt that sound kind of stupid than buying off the plan?

    sorry if this question does sounds stupid, I really don't know and want to learn the basics.

    Thank You

    Profile photo of glengaryglengary
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    @jamesbi
    Join Date: 2014
    Post Count: 45
    March 21, 2014 - 4:17 am

    Thanks the finance shop So are you saying if the area is new or unheard of it is bad?? But better to build a home in an existing suburb that has a current market value??  What if there is no land to buy to build your own home in those suburbs, than how do people build there own homes?? I think I am getting really confused between off the plan and building your own home?? Please help 

    Profile photo of glengaryglengary
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    @jamesbi
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    March 19, 2014 - 12:48 am

    Hey jamie I am from Sydney and just wanted to ask if I use your interstate services will I deal directly with you or will you direct me to an assistant or staff?? Not to be rude or anything just asking because you have a great reputation on here jamie its just that I have used many services from lawyers and brokers which have a good feedback personally , but when I proceeded with their services, they just handed me to their assistants or staff straight after the introduction pitch and its been a nightmare after that because the service they promised me is than handed to their staff member and is below standard. 

    Profile photo of glengaryglengary
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    @jamesbi
    Join Date: 2014
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    March 3, 2014 - 6:38 am

    Hey guys I am really new to property investing too and I wanted to learn and ask from Dereks question, if Derek wanted to invest and deposit with $10,000 on a 150k – 200k loan say about 5% deposit and wanting to rent it out as a Ip would that mean it would be negatively geared and the only source of profit would be from capital growth only ??? 

    Profile photo of glengaryglengary
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    @jamesbi
    Join Date: 2014
    Post Count: 45
    March 3, 2014 - 6:15 am

    Hey Jamie

    Thank you, I am confused about the tax deductible and non deductible side. So if I had a PPOR with interest and principle loan and decided to buy a new property  to live in, would it be bad to rent out my PPOR, be better off just buy and hold strategy and sell it than rent it.  Man these structures get confusing on how to buy with IP and PPOR ….

    Profile photo of glengaryglengary
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    @jamesbi
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    March 3, 2014 - 3:09 am

    Nice Jamie thank you, So for example if I already had a PPOR with principle & interest repayments and than decided to purchase IP with interest only am I disadvantaged in tax??

    Profile photo of glengaryglengary
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    @jamesbi
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    February 21, 2014 - 10:31 am

    Thank You Terry I understand now

    Profile photo of glengaryglengary
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    @jamesbi
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    February 20, 2014 - 11:15 am

    Hey Terry, the company is formed for our business we are doing accessories and textiles.

    And we want to buy in the company for an investment property? 

    Is this bad ?

    Thank you for your kind advice

    Profile photo of glengaryglengary
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    @jamesbi
    Join Date: 2014
    Post Count: 45
    February 19, 2014 - 10:39 am

    haha thanks guys for all the informative advice.

    so for example anz standard variable is 5.08% and comparison is 5.43% ongoing fee $375 annually  does that mean the life of the loan will be 5.43% or that just the upfront fees would be extra 0.35% ??

    is the comparison rate basically just including the upfront fees or annual fees for example standard 5.16% and upfront fee is $375 with no ongoing fee which the comparison rate would be 5.19% because including the upfront fee …. is that how it works??

    would it be the best option to find a loan with standard variable and comparison rate that are the same ???? i have seen a comparison rate lower than the standard variable as well which I do not understand??

    sorry if this question sounds stupid 

    Profile photo of glengaryglengary
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    @jamesbi
    Join Date: 2014
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    February 18, 2014 - 7:12 am

    hank you so much guys , I spoke to a broker today and asked him to explain to me what the comparison rate and the difference to standard variable?? He could not really give me a answer and said don't worry so much about the comparison rate. Should I be worried ? is this a worry ??

    Thanks Guys

    Profile photo of glengaryglengary
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    @jamesbi
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    January 17, 2014 - 1:10 pm

    ^ lol Terry yea maybe I got sold by the book, but its great because now I have more of an idea, this forum is great I have learnt more from just reading other peoples post than I have ever learned before.

    Terry is Interest only good if its an investment property ,? so if it was PPOR and I plan to live there for god knows how long and maybe want to settle would it be better using principle and interest??

    Thanks 

    Profile photo of glengaryglengary
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    @jamesbi
    Join Date: 2014
    Post Count: 45
    January 17, 2014 - 8:20 am

    I would be suprised if this is the case. Can you point out any books in which this is recommended?[/quote]

    Hey Terry I was just reading the great Australian dream and mortgage free debt free and they both don't recommend paying interest only loans. 

    But hey I am learning so this is great if I can get my head around this

     :)

    Profile photo of glengaryglengary
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    @jamesbi
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    Post Count: 45
    January 17, 2014 - 3:01 am

    Ive been reading steve mcknights book you basically can positive gear if you throw a bigger deposit or even stretch out your loan repayments by 30years

    If it was investment property and you rented that out and positive geared at a 30 year loan so cheaper re-payments and relied on capital growth would you still make money??

    I have been reading a lot on these forums and everyone talks about interest only loan structures, I have read a few of austrailan property books and all go against the interest only loans, am I missing something here??

    Profile photo of glengaryglengary
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    @jamesbi
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    Post Count: 45
    January 17, 2014 - 2:45 am

    Than people that pay off a whole property of say $300,000 than after 25 years its worth 350,000 basically you wouldn't of made much in return???? So its better to hold and sell at perfect times???

    Profile photo of glengaryglengary
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    @jamesbi
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    January 17, 2014 - 2:24 am

    Ohhh I get it nowww !!! So if I sold the property for $320,000 and my loan was $240,000 I wouldn't have to worry about the 25 year interest because basically the purchaser has paid off a whole lump sum of $320,000 so basically he paid off the whole loan for me???

    So I wont have to worry about the interest behind the loan because its been paid off. I think I was getting confused with the life of the loan. But realistically if your property is going up your going to be fine to sell which repays back your loan?? If property falls than Im screwed

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