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Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of madeinaustralia77madeinaustralia77
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    @madeinaustralia77
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    April 21, 2011 - 2:48 am

    Not a broken record at all Richard!

    I need to hear it! =) I guess I just jumped into a loan as soon as I could afford to, without research.  I will have to re finance everything to get things a little more under control. My partner has the local loan and I have the messed up one!! hehe But we would like to merge our banking to make it a little easier.

    Maybe an offset account with interest only loan for both properties will be a good start.  Just have to find the right lender.

    Cheers

    Profile photo of madeinaustralia77madeinaustralia77
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    @madeinaustralia77
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    April 20, 2011 - 2:09 pm

    Hahaha! They are painful…. I still get so angry every time I think of it! I have never had a problem with any business like that b4. And getting passed around on the phone from Phiippines to Australia, repeating yourself over and over again, sitting on the phone for hours on end.. and PAYING for it!!! grgrrrrrrrr!! hehehe

    There is a lot to learn eh! But I guess you got to start somewhere….. at least our Perth property is in a good spot. I think we will re finance our QLD property, perhaps both,  into an interest only with offset accounts. Will have to look into it a bit more.

    I am guessing you have since changed your loan?? Working well for you??   I wonder whether we should look at the same loan structure when we want to buy our main PPOR in a few years…???

    Cheers

    Profile photo of madeinaustralia77madeinaustralia77
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    April 20, 2011 - 1:32 pm

    Ahh that makes sense JacM. Sorry I really have a lot to learn in this field… I guess that also makes it easy to access the funds in the future also.

    Oh, and I hear ya about telstra and moving house… We moved house last September and we have had to call after receiving every bill for 5 months straight for them to charge us the correct amount for the correct services… They are IMPOSSIBLE to work with!
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    Cheers

     

    Profile photo of madeinaustralia77madeinaustralia77
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    April 20, 2011 - 12:04 pm

    Yes, I think I will look at changing over asap. So, it is possible to make extra payments on the interest only loans?

    I am yet to claim anything on the Qld prop yet, I will know how much I am really negatively gearing at the end of the financial year. But doing a quick calculation on my possible claims, I should be able to reduce my taxable income by 10-15k… if I am doing it right! =) This home loan rate is currently at a introductory reduced rate of 7.18%…. but will rise at the end of the year.

    If we re-structure both loans to an Interest only, with an option to repay higher amounts. I think that we could knock down the minimum payments fairly quickly when we start paying $1400 a week.  That way we will build up a nice bit of equity between them…. And I am not sure which would be the best option when using this equity as a deposit on our PPOR… Is it a good idea to unlock as much as possible to bring the next loan down?

    Thanks again! =)

    Profile photo of madeinaustralia77madeinaustralia77
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    April 20, 2011 - 5:29 am

    Thanks for the input guys.
    I will talk to the accountant regarding my property claims, and fingers crossed I can! =)

    Richard:

    Yes you are correct that it is a Principal and Interest loan at present, and to be honest, this will be the first year I will be able to claim on it, so I am hoping that I can get a fair bit of the $200 per week back. The main outgoing is strata and rates, which has gone up to 8k p/a combined. The rent on the current loan structure falls about $70 a week behind the mortgage.

    We were actually planning on restructuring our home loans this year sometime. The main reason I have not changed it to interest only was that I was under the impression that you couldn't make extra payments to these loans?  If you can then it will be a great option for us.

    Basically, by the start of next year, we will have a combined total of $1400-$1500 a week we can put on these 2 properties. I was thinking it would be a good idea to bring both loans down far enough so that rent covers almost all costs on each property when we move out and buy our new PPOR. And we could use our equity to pay for a deposit.

    Is this a good stratergy?

    I do believe the market will get better up in Nth Qld eventually. We just have to be patient I guess! =) Such a nice part of Oz too.
    We would love to be able to keep both places as investments if possible. And continue to invest over the years…

    Thanks again for your time

    Profile photo of madeinaustralia77madeinaustralia77
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    April 20, 2011 - 2:36 am

    Hello Magoo1

    Really?

    The residence we live in currently is actually done as an interest only at present. We did claim tax on it last year when it was rented out. Our place in QLD was bought as a primary place of residence, but after living in the property for 2 years, we have moved and started to rent it out. So, you are saying that I won't be able to claim tax on that property this year?? If so, how do you go about changing that??

    Cheers

    Profile photo of madeinaustralia77madeinaustralia77
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    April 18, 2011 - 1:24 pm

    Dont do it!!!!

    I have done the same thing. I have a place up in far nth queensland  that I lived in for 2 years and the strata and rates kept on going up… and they even decided to thrown in an extra payment of $500 because they underestimated some painting costs…. You really seem to have no control over it….

    My rates are 2k and my strata is 6k a year now… When I rent my place out for 300 a week  I still have to pay over $200 a week to cover costs. And the place only cost 200k!!

    In saying all this, I am a total novice in the field and I may have just chose the wrong area or timing…. Or I should just be patient!!

    But really take your time and look through all the fine print…

    Good luck

    Profile photo of madeinaustralia77madeinaustralia77
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    April 18, 2011 - 12:58 pm

    Sorry… I am out of pocket $200 a week for the IP!!

    hehehe makes me cringe!

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