Forum Replies Created
Hi Fiona, welcome to the forum. Great that your planning your financial future. You stated that you intended to move from your PPOR soon to make it an IP. No problems there, lots do it. However, where do you intend to live then and what sort of rent will you be paying?
According to an online mortgage calculator:
Your new planned IP
Loan $600,000
Say 5 .25% (interest only)
Weekly repayments of $605.
Rent of $550.
So instantly you have to come up with approx $200 per month for each IP plus I presume your rent.
Buying in the inner city will mean an older place with more maintenance and few deprecation right offs. Maybe limited room for extension or improvement to increase value.
You could certainly pull it off on your current income but your backed into a corner with minimal growth for a while ?who knows how long.
Why not plan for something smaller initially. I'm sure most people do. We did.
A first IP of that value in relation to your income is huge.
Your debt to value or loan to value ratio wolud be significant and may hamper future lending until there is signficant growth in the market.
Use a separate lender for each property, it becomes really messy later on (believe me)
Good luck.Hi Happyjack. I think your talking about 5 different people here. Solicitors aren't trained in , 1. Property investing 2. Definitely not share trading 3. Business 4 Accounting 5. Doesn't charge exorbitantly? (yeah right)
They should/ are experts in law though. Its illegal for any one to give paid financial advice unless they are authorised to do so eg Financial Planner
Most Property Investors have a team which they seek paid advice from and a Solicitor is one of them, invaluable but not to give financial advice or accounting tips.Hey David, welcome to the forum.
Sounds like your in a great position for your age, well done to you both.
While 6.1% isn't super competitive, you could be locked in at 10%. Truckloads of people are paying more or as much on all or part of their loan. (me included)
You have loads of options. You could redraw some equity to fund a deposit, to buy a IP. What area where you thinking about for 200K?
If you haven't spoken to a Mortgage Broker yet, arrange a meeting. They are a wealth of info and have zillions of products available to them.
Hope your leaving enough cash to enjoy life and each other. Sorry, its the grey hair coming through.
Sounds like your really focused, good luck.Hi Karen, good for you! Looks like a great buy and the numbers are pleasant. What sort of fence are you thinking about? Does it need one. Do the prospective tenants need the privacy? Just few thoughts. Well done…..
So this happened a quarter of a century ago….and the point is.
Thanks SNM & Adrien, much appreciated. Had not thought of the black plastic. Will stop the weeds too…….
Centrelink changed the rules several years ago. Previously to the rule change Nan & Pop would ask a grandaughter/son to move in with them prior to them moving to an aged care facility. They could then claim that their house was occupied and could not be sold in order to pay the large aged care facility bond.
However, now a person must show proof of residence for 5 years in that home before it can be exempt from sale.
Get everything in writing from Centrelink, ask for the operators name and each phone call has a call log number which should be recorded as well.
Talk to a your accountant.
If your Mum does move in to an aged care facility in the future (plans change) then the property will have to be sold unless the family can come up with several hundred dollars. Good luck.I agree with Marc completely ! I would never do it myself, its a real skill which you don't want to use your house to practice on. Give me carpet for IP's any-day. Floors can only be sanded so many times (maybe 2-3) then there paper thin.
One of our IP's had polished boards. They were kept in very good condition however the place was a fridge in winter.
So, the new morbidly obese tenant decided to start wearing her high heels in the house, all over the floor boards. The result was thousands of small heel dents in the timber, about a match head deep. This occurred between inspections and of course I didn't have close up photos of the floor boards in each room. Upon leaving during the final inspection she looked at me through her squinty eyes and said "it wasn't me".
We laid carpet and lino (sorry vinyl) and it came up beautiful. All for less than redoing the boards, which were irreparable.
We have laid high quality carpet in houses before by going to carpet shops and seeking out the remnants from larger jobs. Apparently there are a few McMansions that don't have imported European tiles. Some councils even allow them to carpet them. Often there is enough leftover to carpet a small house or just the bedrooms at a fraction of the cost. IP carpet doesn't have to be a perfect match.
I read somewhere that carpet can be claimed where floor sanding cant? Any help here from an accountant?Hi Bootlace, sounds like you know your cars. Yeah 20k back in the seventies was a load of money for a car. Yes its definitely the real deal as he has had some serious offers but doesn't intend to sell. Very tightly locked away. Would look great in the National Museum. Who would 'nt love to take it for a spin? A few nice videos on You Tube as well. (not his) Thanks for the feedback.
Well ,Ford Phase 4 GTHO Falcon actually. Great to drive to work each day……
My brother just met a guy who bought one in the seventies for 20K.
Has sat safely in his garage since then, rarely driven.
Now worth…..? anyone's guess.
Google it.Sure can, you can back date your depreciations for several years. (3-4) I think? We did a couple of years ago and it was a nice surprise. I spent it on a case of Bundy, then I wasted some. You can pay for the Depreciation schedule for each house- $400 ish though your accountant person can advise you to or when to submit it with the Grandfather clause in mind. Good luck.
Same, same…….none of the banks go broke? Is he serious. No doubt another 300 odd pages of unreferenced material with multiple references to people who never existed.
Hi CSI, welcome to the forum. It was all in the fine print and your certainly not alone. 18 big ones is a decent amount, however how large is the mortgage? Its all relative of course. Have a look at your statement/s and work out how long it takes or took to pay $18,000 in interest. We were not locked in when our rate hit 17% , however I wish I was at the time. Many people probably did predict that interest rates would nose dive…..I wasn't one of them. I'm certainly not whinging as if rates had continued to rise then I would (and you) be sitting comfortably. When are you locked into your current rate? Interesting times indeed as some of the larger banks have stated they may not pass on any or all future rate cuts. As people have stated on this forum, "you cant have it both ways" Is your lone split? If not then something to consider next time. Sort of hedging your bets either way. Good luck.
Your PM is a slacker. My statements are emailed at the same time each month and posted a few days later. Perhaps write them a letter asking for better service.
Hi PD, sure do. Cant go wrong with the lake, beach, shops, schools and 1 1/2 hours north of Sydney. It ticks all the boxes.
I had the same thing happen (coals from an open fire). I went for the patch, $100. Looks great and has lasted. Obviously in a high wear area it may be different. Who cares if wears differently? On a slightly different note we have used offcuts/remnants to carpet our rentals. Brand new carpet at a fraction of the cost. Regardless the tenant should pay anyway.
Hi Daniel, I'm unsure of your actual annual income (6300) is that monthly? Sounds like you would be flying really close to the wire. I realise that you intend to wait till next year with hopefully lower rates. However 350 for a first IP is a big chunk that may just inadvertently tie you down considerably for some time and your ability to borrow further may be held back initially. Of course a newer place will give you some taxation benefits but they aren't really huge in the big scheme of things. You didn't mention kids or the prospect of. They change everything and banks factor them in their lending criteria. Is your employment really secure? Good luck.
Hi Sol, yeah sure you could but its called fraud and looked upon very poorly by the ATO as you would be fraudulently claiming interest on your "investment property" which you would not be entitled to. No accountant would want anything to do with you at tax time.
It's close to Parramatta so it will rent with no problems. My concern would be the total annual fees to keep it, ie insurance, body corporate, sinking fund etc. Does it have a lift or pool etc? Good luck.
The days of 110% finance are well over.
