Is a valuation thru an agent sufficient or do I need a professional valuer?

purchased in 92…. lived in? if you count the occasional weekend, but it isn’t a PPOR. it’s just that it’s not rented out.

Hmmmm…. property with only $10k deposit? I don’t think so.

Add to that low rental yield, stamp duty, rates, etc, low income (which greatly limits benefits of neg. gearing) and quite possibly low potential for capital growth…. property at this stage would not be a good idea for 12-18mth.

Go the ING acct. Shop around, most of the big banks…[Read more]

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Now, if you continued this way unchanged, for the full duration of the loan – say 25 years – would that mean your total loan repayments will have only been $150,000 – that is, the same as your initial purchase price because the tax dept. effectively paid your interest?

No. Your tax deduction will only be at most 47c for every dollar…[Read more]

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I didn’t inform the landlord, just did it! What I did was rent a few bedrooms out at a higher rent, an I paid nothing at all, because the other people’s rent cover the lot. Just becasreful the others don’t find out how much you are paying.

I hope none of them were friends… that’s a low thing to do.

Getting a loan is not too different to getting insurance… you still have a duty of disclosure. Reason being that the bank is watching the bit in the UCCC that says “..civil penalties up to $500,000 …” for failing to accurately assess serviceability prior to issuance of a contract.

Whilst not illegal, most leases will stipulate that sub-letting is not permitted, which I imagine is well within a landlord’s rights…. and rightly so.

I’d be pissed if I had a tennant that sub-letted… kind of negates the whole tennant screening process.

That’s why you’d use an offset acct… so that if an opportunity comes up, you can draw on the funds.

I would never want a loan term to go any longer than necessary. While you may be able to claim interest, it still costs you more than paying a loan off quicker.

A dollar as a deduction is at best 47c. A dollar saved is a dollar.

As much as people might bitch about wrapping, it is capitalism at its best… recognising that a market exists, and making a product that tailors to that market.

I do agree that it is not too dissimilar to loan sharking. To those that say they do it out of the goodness out of their hearts, I assume your wraps are purely non-profit? Or are profits…[Read more]

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Would anyone provide me the best strategy because I was told that the TAX office would give me a hugh tax bill when I change my PPOR.

The only way the ATO could give you a huge tax bill is if your PPOR-turned-IP produced a huge income.

You’ll only incur CGT (AFAIK) from the point in time when the PPOR becomes an IP, should you sell…[Read more]

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I’m not so sure why you feel “investors” should be penalised for setting up their own retirement fund ?? Or do you expect everyone to live on the joke that they call the old age pension ??

The major problem is that it heavily favours those with equity (ie. older people generally) who havce benifited heavily from the capital growth in the…[Read more]

Everything I’ve read suggests the time for fixing has gone. With so much speculation over rate rises and the strentgh of the economy, the banks have adjusted fixed rates accordingly.

I wouldn’t worry. With the massive growth in property values, average mortages are quite high, and v. high rates (ie. over 10%) would have the potential to drive…[Read more]

If there is a rise, I would think its a bit unjustified. The figures about increases in borrowing/credit don’t really take into account the most recent rate rise. At this stage, it’s hard to know if the drop in auction clearnace rates is due to the spring factor, or the rates, or both.

The difficulty is also the timing. A rate rise before xmas…[Read more]

If there’s a bust, it’ll be for the same reason there was a boom – the herd mentality. Just every man and his dog rushed into RE because they saw prices climb, when prices show the first sign of dipping, those same people may very well rush out of RE.

Regardless of motives, there is certainly good money to be made. It also helps if the message you are selling is a get-rich-quick one, as people are in general, materialistic.

Not everyone is intelligent/educated enough to know when they’re being conned. Not everyone realises there is no simple formula for success as some of these seminar gurus…[Read more]

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Also do you know the trick about the 55 day inteterest free credit cards and having it lincked to a LOC account?

What trick is that?

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Hi

This is an intro from tonight’s ch 9 news in Sydney…

“A radical plan is being proposed by the NSW State Government .. to HELP people buy their FIRST home.

The idea is to let potential homebuyers “unlock” their superannuation .. in order to get that massive deposit.”

Don’t the federal government control super legislation?…[Read more]

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It is not breaking any copyright laws to make a copy of something that you own! That is why CD burners, tape recorders, video recorders exist.

WRONG! It is copyright violation to make an unauthorised reproduction of *any* copyrighted material.

Like it or not, even copying a CD you own to tape to listen on a walkman is copyright…[Read more]

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I guess I’m just wondering what the problem is that people forsee. After all – if a property is +ve cashflow today (that is, rent coming in is greater than expenses going out), then it will still be +ve cashflow tomorrow.

Depends on how far rates go, and how close to -ve cashflow some peoples +ve cashflow IPs are. Rents eventually go up,…[Read more]

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lets look at the fundamentles good economy and growth since 98 to 2003 has only made up for a lack of growth in 1993 1996 averaged out growth has been steady since 1993 until 2003.Since jobs are secure im sure we all can pay our mortgages and avoid hype created by the media regarding henri kaye,lets face it he was always going to go down my…

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