Ahhh, the ole glass is half empty eh? [biggrin]

In theory, there is no difference between practice and theory, in practice, there is….

Originally posted by JamesMc:
have always taken out PI variable
Hi, pretty new to this, so appologies for what is probably a simple question.
What is ‘PI variable’ as discussed?
(Mind you, old Chinese proverb goes like “Any question with an answer is worth asking”)
Thanks.
James

PI variable = Principal+Interest Loan with Variable Interest…[Read more]

Originally posted by zerotaxforever:
Firstly thankyou for your advice, I really think in the situation they are in that they need the property to pay for itself as they are both in the position of not having cashflow. My Aunty has equity sitting there doing nothing and in the mean time is frightened she will not have enough to retire one day as…[Read more]

Originally posted by zerotaxforever:
My 21 year old cousin has a insurance policy coming due soon to the value of $12,000. He is a uni student and needs to pay for his fees, however my Aunty and I are are suggesting that instead of it getting used up and then thats it, maybe investing it into property or other for the future. My Aunty is willing…[Read more]

Originally posted by simple:
Rich is a specific condition when your profit is higher than your expenses.
In other words you have “unused” funds left after all bills paid.
On the other hand, wealthy is when your profits match your expenses….
This is my understanding of it.

Hmm, you can make a profit and not be rich. Im profitable…[Read more]

Yes, the journey is part of the dream, the nothaving to work is the icing on the cake for me. Theres no point living like a pauper with no friends/socialising, eating burnt toast and brains for 20 years just to retire early.

Originally posted by Young:
Originally posted by kinkso0o0o:

The dream is what its all about.

Im interperating this as…[Read more]

Yup, thats my aim Young.

If i can wake up one day and think, stuff it, i dont need to work today, then i’ll consider myself rich.

I choose my goals based on what i want out of life, and then work out the costs after.

“But the majority of you will be after a numerical figure.”

I disagree with you on that point Young, most people that ive spoken…[Read more]

yea, tis crazeh!

but i guess they’re just like any other people running a business. You have your dopes and you have your knowledgable ones. It all depends who you speak to in end it seems.

Its funny, I guess i thought banks would be different, but i guess thats just a stigma.

Cheers,

Damon

In theory, there is no difference between practice…[Read more]

Hi Rayson,

Are the IP’s positive or negative cashflow?

600pw for own home!!!! yikes!!! 50K/year will not cut it I guarentee it!!

Im about to have my first child (about 4 weeks away) and have just gone through the process of “can we afford to keep the IP?”

We could easily keep the IP cos it was +CF however our PPOR costc $1800/month and we were…[Read more]

which city?

In theory, there is no difference between practice and theory, in practice, there is….

Yes finally!

You wouldnt believe it either, after all that.

I emailed the branch manager today and told her what i had discovered and she replied saying casually “No worries, so shall we setup the Equity Manager then?”

*sigh*

As nice as pie as she is, I could have throttled her….[evil4]

Cheers guys thanks for the hand.

Damon

In theory,…[Read more]

Do you have any other source of income?

Cheers,

Damon

In theory, there is no difference between practice and theory, in practice, there is….

quick update:

I just got off the phone to one of the breakfree guys who was very helpful to my situation.

He set it straight and said there was no reason I couldnt go the Equity Manager loan and that there was no requirement for my salary to be deposited into the LOC.

So, serveral ANZ conversations later I have the required result. I just need…[Read more]

Forgot to mention, the LOC will be used 100% for investment purposes.

Cheers,

Damon

In theory, there is no difference between practice and theory, in practice, there is….

Hi Terry,

Yes, this is what I thought, however am being told different by ANZ.

Do you have a PPOR loan in your structure as well? I do, maybe that matters? As the AnZ said the Home Equity Loan would be better at keeping personal loans seperate from Investment loans. Unfortunetly i dont know cos ive never seen the product and tbh, i havent had…[Read more]

Cata is right on the money!

When i think of a business plan tho, it seems to hard and complex. Instead I just break it all down, starting with goals. Real life goals. From there its all just project management imho.

Start from the end and work your way back to your current position whilst breaking it down into milestones.

Eg, I want to own a…[Read more]

Hi elkam,

Im on the pro package with ANZ as well. I had 2 properties revalued a week ago. Normally they would do a drive by for both but i requested a internal inspection in one (lots of renos). The other was just a driveby by my request.

So i think its still the same if you request it.

Cheers,

Damon

In theory, there is no difference between…[Read more]

Hi James,

Yes, positive thinking is very underrated. That said, there is positive thinking and there is foolish thinking. Positive thinking goes hands in hand with good research, go into every deal with your eyes wide open.

In every cycle, shares or property, there is an upside and a downside. Insure your downside by fixing rates, drawing equity…[Read more]

Originally posted by gmh454:
Thanks for the reply Damon appreciate your time.

Interesting times ahead, more so I think with the economy rather than property.

No problem gmh, its always good value to discuss these issues in an open forum where views can be challenged. It keeps us honest whether we like it or not

One thing I forgot to…[Read more]

Originally posted by gmh454:
Damon okay, if the rise does not lead to

increased unemployment
decreased consumption

then you may be right

As to ….”investors have to pass on the increased cost” I thought supply and demand would make such a possiblity irrelevant.
What has a landlords problems got to do with renter A and B outbidding each other…[Read more]