Rub it in! We’re expecting snow

energy4anarchy – thanks, I’ve responded to your email.

Cheers

Jamie

Hi Amit

It’s been covered quite a lot.

Here’s a few threads to get you started (a little outdated but still relevant).

https://www.propertyinvesting.com/forums/property-investing/general-property/4326238
https://www.propertyinvesting.com/forums/property-investing/help-needed/4332681

A quick search will reveal many more.

Cheers

Jamie

Hi Nonnie

Is there anything else that could persuade the vendor to drop their price? Found out what their motivation for selling is – they may want a short or long settlement, they may want the opportunity to rent back.

I wouldn’t jump straight to your final price right now – give yourself a little wiggle room.

Cheers

Jamie

Yes, of course it is. I have clients who are on modest PAYG incomes but own multiple properties. Start by educating yourself – read widely (borrow books from the library about property investment) and continue to participate in forums like this.

Cheers

Jamie

Hi Tracey

Would you mind sharing which areas you’re talking about?

Cheers

Jamie

The guys I deal with in Canberra charge around $800 to $900 and provide conveyancing services for NSW and ACT. I’m happy to recommend them to my clients and they’re happy to offer my clients a discount

Cheers

Jamie

Financial advisor or mortgage broker? I’m assuming it’s the latter.

Is there something that concerns you about the advice your current broker has offered? If so, feel free to post your question on the forum – there’s a few regular brokers that should be able to help out.

Cheers

Jamie

Hi Warren

No worries at all.

With interest only, you’re never paying down the principle. For some people, the notion of not paying down debt is bizarre. However, when investing in property, it’s the growth of the asset (over time and/or manufactured through renovations, etc) that most investors aim for (not necessarily to pay off the loan).

Will you have a mortgage on your principle place of residency? That will be one of the major factors in determining how your investment loan should be set up.

Cheers

Jamie

Hi there

Firstly, yep – grab a depreciation schedule. 17 years isn’t that old – you’d still be able to claim a fair bit.

Easiest way to think about negative gearing is to:

Add up all your income (rent)
Add up all your expenses (interest repayments, body corp, insurance, rates, depreciation, etc)
Income minus expenses = holding costs

The holding costs will be taken off your taxable income.

So in your situation – it looks like the holding costs over the 3 months is $3500 (income minus the interest and other expenses). If you earn $80k – your new taxable income will be $76,500.

These are just rough figures (and shouldn’t replace the advice of a qualified accountant) but hopefully it helps.

Cheers

Jamie