Forum Replies Created
- Shell H wrote:
Oh & no Terry I am not an engineer or IT worker? do they tend to over analyse?
Yep, it's often a trait.
Sounds like you've got the knowledge – now you just need to act on it…..it will get easier after the first purchase
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
JacM wrote:Sometimes people are so deadset on finding "the best deal" available that they cannot commit to any deal for fear that a better one will come along tomorrow. All the while property values go up and opportunities are missed.Spot on – that's the main cause of it.
It's impossible to find the "best" IP or the best PPOR – there are always going to be some boxes left un-ticked.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
adam.p wrote:Thanks for the comment. I now understand.Basically there is no way to increase current loan and claim tax deductible on full new loan amount. The tax deductible part pretty much stuck with existing loan amount.
Correct.
For instance – you have a $500k PPOR and you've paid $400k off……loan is now down to $100k.
You then decide to turn it into an IP.
You can only claim interest on the $100k.
If you increase this loan to purchase a new PPOR – those funds (the increase portion) won't be deductible because it's not an investment.
If you increase the loan to purchase another IP – those funds will be deductible.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Yep, looks like it – but when you add back depreciation it will probably tip into positive territory.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
There's a few ways to think about it.
Firstly, all that knowledge is worthless if you don't act on it.
Secondly, if you've determined that property investing is right for you and you believe that you'll generate wealth from it over time, then there's an opportunity cost involved when you don't do anything.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
N@than wrote:Hi Cha,If you had interest only on your PPOR with an offset account than you would be able to avoid the situation you have found yourself in now (as discussed on another post), and you would be able to claim the full amount on your current PPOR when you move out and turn it into an IP, because you are not re-borrowing any money just shifting it from one bank account to another.
100%
You'll be telling me how to structure your loans soon!
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi there
I'd also factor in a budget for maintenance.
You've also got depreciation to include as well.
Interest on $212k @ 5.7% should be $12,084
Did you use borrowed funds to cover the deposit/costs? If so, the interest on that loan should also be included in your sums.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Tax deductibility is determined by purpose.
You're redrawing $200k for a PPOR purchase – this isn't a deductible expense.
This is why your loan should have been set up as IO with an offset from the start.
cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
In the example above, you could only claim interest on the remaining $50k balance when that property becomes an IP.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Stamp duty fees do vary by state.
However, I doubt that's the reason you're hearing people in NSW say that Brisbane is the place to invest.
There has been a bit of talk about the Brisbane market being in a recovery stage. Check out resources like the Herron Todd White month in review.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Should be pretty easy to work out whether your broker is decent or not – the spectrum varies dramatically in the industry when it comes to quality.
Interest only for a PPOR works particularly well if the PPOR is going to become an IP in the future….or if cashflow is tight.
This blog entry explains the concept.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Leonard
If you do a quick search on MISA you'll find a fair few posts.
Whether you can do better than the current discount with CBA depends on your total borrowings and LVR.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
jmsrachel wrote:Who is the chosen One?Would have to be Terry W – lol
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Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
You'll be in good hands with Richard.
Location isn't an issue.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
There's also a couple of decent investment property mags.
Australian Property Investor and Your Investment Property – I used to enjoy having a read of these when I had a bit more time.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Agree with Crest.
I wouldn't worry about incentives. Just ask them if it's ok to start paying weekly – for most it should be as easy as changing the direct debit they have set up from monthly to weekly.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
garmon wrote:I thinks agent is a most important part of real estate sector… Because they have full information of real estate market. And they have full knowledge about property law… So they are very helpful for selling and buying property…And they also provide best guideline for property…Ahhh geeze. There is so much wrong with this paragraph I don't even know where to start.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
If you're going to self manage you'll need to introduce yourself – ask them over a casual chat if it's ok if they set up a weekly debit….obviously don't point out that it's so you can save more cash.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
booge wrote:As much as I'd like to, we can't afford to make the current PPOR an IP. We already have another IP and intend on keeping that one.We would definitely sell the current PPOR and put the proceeds towards the new PPOR.
Look's like you've answered your own question Booge. Seems like it's best to sell up before buying.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Do both.
Buy a PPOR, utilise the FHOG and any other concessions if they're available to you.
Add some value to your PPOR through renovations. Access this newly created equity and use it as the deposit/costs on your first IP.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
