Forum Replies Created
It’s rather difficult to ask a book to clarify a point you don’t quite understand[tongue]
Kez
More investment strategies —> http://www.21stcenturyacademy.com.au/cmd.php?af=199400
Thanks Simon
That’s exactly what I was looking for.[biggrin]
Kez
More investment strategies —> http://www.21stcenturyacademy.com.au/cmd.php?af=199400
Do you own the town house outright, or are you still paying it off?
If you’re still paying it off, would the rent you’d get on it cover the repayments and running costs?
If you own it outright, have you thought about taking out a line of credit to purchase other IPs, or to help with your move? You could set it up so that the rent covered the LOC and running costs of the rental, and free up some equity at the same time.
The RE agent would get much more on commission from a sale than from property management fees, and I have a feeling this is why they would urge you to sell. There’s no way an 8 year old property is too old to rent out.
If you do sell it, do you have a solid plan with what you’ll do with the proceeds? How do you see whichever option you take now panning out in the long term. If you could jump ahead 10 years, and look back, what do you think you might wish you had done? Are you under any pressure (other than from the greedy agent) to sell the town house?
Something I find useful if I can’t make a decision about something is to sit down and make a list of the pros and cons of each course of action available. Perhaps if you do a list of short term and long term pros and cons, it might make your decision easier.
I’m not trying to give advice here, just some things to think about. Ultimately it’s your decision to make, and you have to make it to suit your plans and strategies. It’s a good idea to have an idea of what you want to achieve in the long run, and then use what you have in the best way to reach your goals. Sort out where you want to end up, and work out how the town house will best help you on your way there.
Good luck. I hope it all turns out well for you.
Cheers
Kez
More investment strategies —> http://www.21stcenturyacademy.com.au/cmd.php?af=199400
hi syneric
Why don’t you approach several different lenders and see what they say. If none of them will come to the party on it, you could always buy it for cash, then use the immediate equity to borrow for more properties. Even in the most outback of country areas, I imagine it would be easier to get an LOC or something like that on a property you already own, than borrowing for initial purchase.
Just some thoughts
Cheers
Kez
More investment strategies —> http://www.21stcenturyacademy.com.au/cmd.php?af=199400
Hey Bradles
If you do it right, you won’t be paying off $300,000 on a single wage. You will do your research properly to ensure that the properties you buy will be at least CF neutral, and will pay themselves off. Then your single wage will be free to be used for other things [biggrin].
Cheers
Kez
More investment strategies —> http://www.21stcenturyacademy.com.au/cmd.php?af=199400
Hi … not exactly the same topic, but kind of related. I searched for “renting own home”, and couldn’t find what I wanted with a quick scan.
My situation is that I’m in the Defence Force and own a suitable property in my posting locality to live in. If I didn’t own this property, I would be entitled to rent assistance. Since I own the property, I get nothing.
I was thinking of transferring the property into a company I want to set up for all the IPs I intend to buy (squillions and squillions of them[biggrin]). I would then rent the property from the company, and hopefully be able to get rent assistance. It might take a bit of creativity, but there’s gotta be a way to do it.
As I understand it, all repairs and running costs for the property would be a tax deduction for the company. I would not only get a couple of hundred bucks a fortnight for rent assistance, but the govt would help me out with doing some stuff to the place.
Is this flawed thinking? Have I got the wrong end of the stick here? Ideas/comments appreciated.
Cheers
Kez
Speaking from a tenant’s point of view (I rented for years before I finally bought a place), it is very upsetting and traumatic to be ousted from your home just because it is convenient for the owner. I had this happen to me a few times as a tenant, and it really disrupted my life in a major way. You’re talking about ‘kicking the tenants out’ because your plans didn’t work out, yet you say they are great tenants. Try and see it from their point of view. I’m not saying you are not thinking of the effect this will have on them, but as a tenant, I had very few landlord who I felt gave a damn about me, and it’s not nice at all.
Just something to think about.
Cheers
Kerri
Kez
Hi Rob
I just watched a video of Ian Daily talking at a seimnar. He is some big wig at ITP. He was saying something about trusts not being such a great idea any more. Something about the govt changing the rules, ‘cos they don’t like not having control over trusts as they come under common law.
Ian seems to think that the govt plans will make trusts lots of work and hard to manage. He didn’t really go into much detail, but when he mentioned it, I thought of you and your new structure. Might be worth checking out.
Cheers
Kez
I think most people do wraps to turn a CF- property into a CF+ one, or as an exit strategy. If you are more intersted in CG, maybe a wrap isn’t the right thing to do. Once you sell the place to the wrappee, the end price has nothing to do with you. You have sold it, the same as if they paid cash, except they are paying you off over a period of time.
Cheers
Kez
Hi PT
With a question like that, are you sure you’re thinking of wraps, and not lease options? Sounds like you are maybe thinking of a future price for when the other person exercises their option to buy.
If that’s not the case, just pretend I’m not here. If that is the case, I have no idea, but will be eager to hear the answers!
Cheers
Kez
Thanks very much everyone[cap]
I’ll pass this all on to mum and see what she thinks.
Have a great day
Kez
Paul
What would happen if the wrapee just up and left? Would you just rent the property out or wrap it again? If the wrapee decides to leave, are there any obligations on the wrapper? Would there be a clause in the contract to cover this sort of thing, and what might it say?
Cheers
Kez
The rent … well, I was thinking that maybe Kerris Holdings might supply the house as some sort of tax free employee benefit. Not sure how, but there’s gotta be a way to do it … just gotta find it[biggrin]
Mortgage Wizard … ummm …. Advisor … ummmm …. the storm trooper [tongue4] … good idea. I might drop him and email. Have you got a ball park figure of how much it would cost to set up something like that?
Cheers
Kez
Is a trading company one that buys and sells the properties?
Kez
After doing some reading, I actually have an idea of forming a couple of companies. One would be the working company (ei. Kerris Renos Pty Ltd), and would not own any of the properties. Another would be the company that owns the properties (ie. Kerris Holding Pty Ltd). And then there would be me, who owns nothing, but works for Kerris Renos, doing up houses owned by Kerris Holdings. If I was living in the house owned by Kerris Holdings, I would just be a tenant, wouldn’t I? And wouldn’t all expenses incurred by Kerris Renos in the course of carrying out business be a tax deduction? Couldn’t I then just draw a wage from Kerris Renos or something, keeping it under the tax free thresh hold to avoid personal income tax?
Does any of that make sense to anyone?[blink]
Kez
See, there’s the rub. What I plan to do (once I have gotten to a point I can give up full time work), is to buy a doer upper, live in it while I do it up, then do it all again with another one.
So, (if all goes to plan) I would be only living in each place for 6 – 9 months, and then moving on. Would I change each to my PPOR when I moved in, or start a business and personally rent the property from the business, or somehow have living in the house as a perk of the business, or what? I got no idea of how it would work.
Cheers
Kez
D’oh! Silly me! *slapping my wrist*
Fancy thinking that and inexperienced “newbie” would have anything credible or logical to say.
My, I have so much to learn.[blink]Kez
