Forum Replies Created
Don, how do you effectively use those sorts of rates? Do you buy IP's with a variable rate? Correct me if I'm wrong but the variable rates are usually set a few points higher when the rates really hit rock bottom..?
Anyone?
Originally posted by asdf:Sounds like renting is the way to do it in Syd at the mo. However a friend I know has taken advantage of the biggest tax loophole ever. He has made over $2.5M over only 3 PPORs in <10 years (net of transaction and reno costs). Not a bad effort at zero % tax!
Any chance of you enlightening us asdf? [biggrin]
A PM would be awesome…. [thumbsupanim]
Wow! So it looks like it’s really worth it!
I guess we are considering this for two reasons (that are derived by one reason)…
We plan to have kids in around 5 years time.
1) If we can afford to, we will make the “required” repayments after 5 years, and save ourselves almost 5 years, and according to Adam, $76,151.67. [blink]
2) If we can’t afford to (with kids, so this might be more realistic), we can refinance and make our repayments less, but stretch it out over the 30 years again.I have sent you a PM too, Adam. [biggrin]
Thanks!
Thanks for the help everyone!
Qlds007: I have seen those calculators, but unfortunately they start counting after a certain number of years, rather than before.
Stu: That is a great help! That was the sort of info that I was looking for. Would you mind telling me how you worked that out?
Thanks
Thanks everyone.[biggrin]
To be honest I don’t really know what is available, so I’m unsure of prices. They seem suitable for my lifestyle (a small apartment in the city) so I thought I would look into it. You’re right about them advertising – there used to be heaps of ads, but nowadays there doesn’t seem to be any. Maybe developers have stopped building in the CBD?
Thanks Dr.X;
Originally posted by Dr.X:
what are you buying for, cash flow/ appreciation/ manufactured equity etc, you need to know this before you buy!I am looking for cash flow, however I don’t need it now. “Future Cashflow?” [biggrin] I am comfortable with the money that I am earning at the moment, just looking forward to the future, say 35+ when it would be nice to have a bit more money coming in every week. It would be great to be financially independant by 55.
Originally posted by Dr.X:
Why the Northern suburbs of Adelaide?I grew up in the Northern suburbs and I know them the best. I am constantly looking everywhere, but I feel I have the best knowledge of these suburbs. Unfortunately out this side of Adelaide most of the prices are already higher, however from what I have gathered, they are still increasing in value at a steady rate.
Originally posted by Dr.X:
If you forgo the FHOG, you will get rent from the property (as opposed to living in it), you need to calculate which is more!I didn’t think about it that way. I would imagine that my property would be being rented for around $220 per week, so it wouldn’t quite make the $7000, but after bills, it probably would…
After reading your first two points I said to myself “So essentially, it just gives me more flexibility with what I can do with my money”.
Then I read your third…
Originally posted by Mortgage Hunter:Using the offset gives you the flexibility.
[biggrin]
Well, I may be wrong, but from what I have read, it seems that the big advantage with an offset account is that you can use the money in the offset account for any use, whether it be for personal or investment purposes at any time.
Say I had a loan of $100000, and over a year I payed $10000 in extra repayments, for me to redraw this $10000, the Government would consider me to be taking it out for personal purposes, making 10/100 (or 10%) of my interest is not tax deductible.
For reference, I found this thread the most helpful.
However there is still a “hazy area” in my mind.
Say I did redraw the $10000 for a deposit on a new investment house, does the ATO still view this as being a personal redraw?
Thanks again Simon.
Alistair; would you advise that I borrow more than I need to purchase the house so I can perform these renovations/repairs?
I guess I just assumed that I would be best off doing that?
Sorry, I’m still learning!
Thanks for your quick reply Simon!
Already I have learned something very valuable – the FHOG only requires me to live there for 6 months! I thought it was 12.
While I am living at home, I definitely intend on making more than the required repayment each month. It would be nice to pay off some extra on my first property, paying it off quicker, and then using the profit from that property for extra repayments on my other peoperties.
