Forum Replies Created
ditto nsw
Oh, I was thinking trust so i could keep my income low over the next few years for other business purposes.
Thanks, Thats basically what i was after. ie, don't refinance my first place with the suggested pro pack! I will refinance with a seperate product but what is the best option for the new property? I have about 430k to contribute to buying the land then i will have to get finance for a) balance of the land (maybe 100k) and b) costs associated with building duplexes on the site with a view to sell one then gear against the remainder that will hopefully have nothing owing on it.
I was considering trust v's personal ownership only for tax reasons (hopefully not going to get sued anytime soon… touch wood!) and whether it would be better to take a 30% company tax hit vs cap gains tax. My income will be very small during the construction of the duplex with my wife on a salary bringing home the biscuits.
Thanks Piersw and Richard (both gurus!)i need good accounting advice too. Also in the sutherland area so fill me in if you visit a good local accountant with vast property knowledge and EXPERIENCE. good luck
Thanks, I thought about that but can i do this without having all the different property's secured by the PPOR? Do i have a smaller mortgage on the PPOR and have the reaminding mortgage funded by the cash flow generated by a number of positively geeared property's ( i was thinking 1 high yielding mining town property with the rest geared in more stable areas but geared to be pos(or maybe commercial)) ?
Either way i don't intend on gearing higher than about 60% in total.
Any word on getting specialist advice on these issues?Yeah good points, 32 YO married no kids. If i base my risk on property as an asset in general, I think its fairly conseravtive (except if i was to throw all my eggs into the property basket) I was thinking to lay enough deposit onto each investment property that the positive cash flow (albeit reasonably small cash flow per property) will contribute to the mortgage on the PPOR. I know i will be taxed on any pos cash flow before paying off PPOR mortgage but i think this would be a better idea than buying 100% PPOR.
Who gives specialist property investing advice? Good Mortgage brokers??? Good, property investing accountants??? Paul Clitheroe???Has someone here been 'had' on a course perhaps? Or have they not participated in one? I've done one and took heaps away from a very well designed course/mentoring program. i probably won't do one again for a while but its stupid to say only 'mugs' do them and you'll 'have your wallet emptied.'. its the same with everything you invest in… be wise, research it and spend wisely.
Don't write it off and don't think you KNOW IT ALL! Theres plenty out there who will pass on a heap of great info/advice for reasonable money.What would steven hawkings say?
What exactly could this mean for wizard borrowers? No decrease in rates? Calling in Loans?
ha, this is a cack. How the hell do we get from property investing to the Rebels MC reception desk? The world moves in mysterious ways!
What about no discount but a tentative guarantee of very slow, minimal future growth? Talk about a guarantee being only worth the paper its written on!
I have an old microwave if anyone would like it. Its been in the garage for a while now but am happy to give it away if its looked after.
I also have a dishwasher that doesn't work so well anymore… Its name is jasonL.A Aussie wrote:wealthyjvd wrote:thanks,i just read something about a lady who had only 1 house at the age of 35 and now owns over 50, and shes nearly 40.
how, with all teh debt… i wanted to know more about equity to fund these shortfalls.
She's probably bought a few blocks of cheap flats, and counts every flat as one property.
Otherwise, I'd seriously doubt the story.
50 properties in 5 years? Yeah, right.
Those days seem to be over. Port augusta properties for 30K?? Its not a game. Its about servicing debt and investing wisely. It takes time, many, many days learning and just as long sifting through 'guru's' advice. See an accountant who knows property, find out what works for YOU and be prepared to sit back and say "i shoulda bought there 1/3/5 years ago. Don't rush in and expect to make a quick buck. Be careful who you take advice from and do your own work/due dilligence. Don't rely on articles in magazines make sure you have an exit strategy before you throw 600k into something neg geared thats going to give you 5% pa.
Patience is a virtueforget choosing a loan purely on a cheap rate. As per a previous post of mine, i'm stuck with a crappy loan with a good interest rate that is now costing me money. I jumped into a wizard shopfront and got the cheapest rate i could find. This was great at the time, but things change and the property this loan is attached to is now an IP. I have a cheap interest rate but am stuck paying Principal and Interest because the loan product is so inflexible and won't allow interest only repayments.
This inflexibility is costing me over $200 per month that i should be contributing to non deductable debt.
The lesson i am currently lerning is to carefully choose what loan you choose now as it will efect you 3/4/ 5 years down the track. In hindsight another .05% and a more flexible loan would have been much better.crj wrote:I'm not a broker, but I assume like me you have ratebreaker. You would need to consider the cost of altering the loan (mine says within 4 years) and whether a refinance would result in higher interest.I was hoping someone would be aware of a way to do it without breaking prematurely. I can't see how it could benefit Wizard from stopping me doing this and was wondering what i might be able to do to get them to drop the principal from my repayment so i can put it to beer use. I'd be dropping a good couple of % if i broke from the loan.
bloody hell, that was funny. I just read thos links. Very funny stuff. I hope people don't rely on others to do ALL their Homework, All their financing, ALL their tax, ALL their consulting etc. All you have to do is read enough info (this forum, also a good one i have found is the BANTACS website for tax tips) and then start harbouring advice from friends and seeing proffesionals.
It won't hippen overnight but it will hippen and you begin to appreciate what you didn't know as your knowledge base grows.
Sipher through all the crap and don't give people your money for nothing. You'll feel like an idiot when you get waxed of all your hard earned then hear about it on here two weeks later.geez. bit steep. How about a two eek trial? Gimme two weeks to check it out and i'm in if its worth it.
Does this have anything to do with the insurers who cover each banks loans. ie. GE might cover a % of the total amount of lenders in the market. As a result of using banks using the same insurer they may deem you more of a liabilty. I may be wrong but,this is something a broker inicated when considering neww finance. One of the brokers on here could probably explore its relevance if there is any.
Thanks for the input guys. Very helpful and i've done the draft so i can run it by my accountant. If he says it is ok, i will lodge it, otherwise i'll get him to do it. I've done enough fishing around for advice so if have haven't come up with something now i'll need to head back to school.
Thank you allI love the "told you so!" posts that are written a bit early… and i think your friend is telling fibs if there was no further information on the sale and yield of the property in cronulla in the original post. What street? Not happening. The only property i can think that would come close to those figures, she didn't check the strata minutes.
