Hi Ed, & who said Aussies don't save???You're alright, man!The numbers you posted should put you somewhere in the neutral gearing position, with depreciation & -ve gearing.Please pay attention to the comments about the deposit. The savings should pay off the house asap while the loan on the IP keep increasing.You do this by 'borrowing' to pay for…[Read more]

hI, just wondering what are the ongoing costs?KY

Hi, the calculations go like this:Contributions = $18000 [9K x2] x 25% [40% tax bracket – 15% tax] = $4500 That alone is enough to pay ongoing costsAdd employer contributions of $18000 [don't know how this part works out later]The rest of it is accrued through normal compound interest.Sure, 700K is not comparable to your Woodcroft home but look at…[Read more]

Hi losty, your case made me really look at the numbers.It's so simple it's almost idiotproof.$9000 p.a. = $750 p.m. x 2 = $1500 p.m.Accrued         interest          tax saved$1500            $6.25              $31.25$3006.25       $12.53           $31.25At the end of 15 years, the total accumulated is $744430.50That doesn't include the t…[Read more]

Hi.how about this super scenario?Husband: $100K income – contribute 9% = 9K same as employer contributionsWife dittoSmsf costs = $6000 establishment, thereafter $3500 [this is very costly; can be much less]Consider Year 1 a wash. [Standard 40% tax bracket every year for 5 years, interest earned @5%]Year 2 : Tax savings = $$36000 x 25% = 9000 …[Read more]

Hi, I was interested enough to play with the numbers for Singapore. I came in at 16x my salary for the kind of apt I'd qualify to buy.My godson on less than half my salary came in at 8x.For Malaysia, I came in at 12.6x, my nephew to buy at crap cement box low cost flat would be only 2.5xIncidentally, Singapore has a lot of restrictions on housing.…[Read more]

Hi, I'll wager the average price of houses in Crafers won't be 2M in 10 years. We lived in the hills [near Blackwood] and between 1990 and 2000, prices went backwards. There are also all kinds of cheap cottages albeit on big land.I'll not say Crafers is the hills suburb to go into the 2M average. It's more likely to be Auldana. I saw some $300K…[Read more]

Hi, is this Australia you're talking about? Property prices have been flat for 3 years? Where oh where? Can you name some suburbs please? I'm under the impression that even a hole in the ground has gone up in price. My PM actually said that someone might need it for a rubbish tip. And he's right. The holes in Wingfield have gone crazy in…[Read more]

Hi, $400000 to build a house? The builder is probably making 200000 from building it.KY

Hi, consider the cost of trusts. If audit is necessary, you'll find that what you save just goes to pay the accountant, sometimes maybe even -ve.From what I know, trusts apply only if the value of the portfolio is sufficiently large.Re having enough to live on from properties, I'd suggest you leave out PPOR. It's not an investment, it's a…[Read more]

Hi PQ, don't berate yourself & don't fix what's not broke. Of course, you could have done better, so could I & so too could everyone else.Congratulations on being in the big M category. You've done what most of us did, jumped the deep end & then flailed around adn swam from necessity.I did exactly the same, didn't even know that I was a 'property…[Read more]

Hi Anthony, another poster, I think it's RumpledElf, said that she now looks at established homes rather than subdividable brokendown houses & I agree with her. I've seen houses show steady yield without the hassle of building. Building is much higher risk.If you can get 45K for 9 months work, by all means but I know someone [my brother in law's…[Read more]

Hi aj. yes, the sums were so compelling my agent said it was a bargain even without the subdivision.I sold in April 08 amidst all the GFC jitters. If I'd hung on I'd easily have made more with the FHB new house bonus. When I sold, that wasn't in the equation.The bank valued it $5K higher than what I paid originally & 6 months later, the valuation…[Read more]

Hi, doesn't matter as i'm on high commercial rates anyway. It's the term that I want. My current loan is short term 12 months. I will be happy with 2-5 years.i can even provide BAS, etc etc except that my taxable income is very low. That's the reason why the std bank loans are difficult for me. KY

Hi Richard, would I be able to get one of these no docs?I have a $170000 loan matures in Feb 2010. It's a private loan @9.5% against a shop [3 tenants] council valuation around $340000 or a bit more. I have 3 other separate titles [commercial, unfortunately] that are unenc umbered. Value by council $360000 approx in all 3.KY

HI ajsc, my subdivisions were in Adelaide.The 3 year was because the builders were very slow to submit the final paperwork, at one stage I decided to let it slide because I saw the house prices shooting up. Didn't improve my profit margin cos interest rates rose as well. Just meant that my end value calculations were very good. The other one was a…[Read more]

Hi, your 8 mth timeframe is very efficient work. 45K profit is not bad.I did one similar to yours. It was supposed to take 1 year & profit would be 90-110 thousand.It took 2 years, I sold for approx 100 thousand profit, the buyer built and will make 100 thousand +Another one [4 houses] took 3 years and 75 thousand nett before tax so 300 thousand…[Read more]

Hi, good advice from Terryw. Your 5 IPs suggest that you know enough about property investing to do well in the area you wish to proceed.Doing it while working enables you to get funding. Obviously, you won't have time for much else! But that's what it's about, the passion to do it with all your soul. Weekends, holidays etc spent on renovating &…[Read more]

Hi, why not live in one of the IPs?Or defer living in the targetted PPOR until it's paid off then move into it? Eg, buy the house of your dreams/a tired house with good bones then use it as a rental, putting all savings into an offset acct.Near the end of the period, [6 years], or in between tenants, do major renos, then when you're ready to move…[Read more]

Hi, are you sure of the costing? What about interest during the period of building & before the place can be tenanted? What about the finishings? Fencing, driveway, clothesline, air cond etc? Conveyancing, stamp duty, strata fees, etc>KY