Forum Replies Created
Hi Nit,
The two scenarios you are talking about would work in the same way. Whether you have your $20k sitting in the redraw of the Basic Home Loan, or in an Offset Account variable loan – you will still be paying interest on the amount ($300k minus your $20k) and you still have the funds available to you should you need them.
Main things to consider are:
– Are the interest rates on both loans the same?
– Are you disciplined enough to have all your funds sitting in an offset account (your normal transaction account) without drawing on the funds?
– Will you have high amounts of money sitting in your normal transaction account (beyond your $20k)?These factors will all affect the amount of potential interest you could pay and things you should consider before deciding which way to go.
Cheers,
Matt.
Thanks Kenny, magic mate. I don't think that was the same site as I was using but the search and format is almost identical so I'll take it!
Cheers mate.
Thanks Shivasko, that wasn't the one unfortunately but it is very good nonetheless! This is driving me nuts…. It was such a good site!
Thanks so much for the report Mike – it is FANTASTIC! It is filled with so much valuable information and it was delivered so quickly!
Thanks again Mike – I look forward to using your services again in the future!
Thanks again Mark. I have quite a collection myself. I enjoy the books most that have short stories of real people sharing their Investing experiences. Most of these books are back from the late 90's and early 00's where they were buying and selling properties for under $100k and nearly every deal had a rental return of 10%+. It would be good to read stories of people with more recent stories to see what they are doing and the kind of numbers they are looking at in the current market.
Thanks Mark. Looks like you can download the book for free on Chris' website too (http://www.yourempire.com.au). I will check it out over the next few days!
Hi Mike,
Thanks for the kind offer. Are you able to provide reports on SA properties at all?
Cheers,
Matt.
That is a good book Marshes – Steve's books are what got me obsessed with property! Too bad he doesn't have any more recent ones…. (hint hint) Haha!
On the same topic – does anyone know any good investing books that have been written recently and take into account current property prices and cycle? All the old books (which I love and still have loads of relevant info) are outdated and talk about positive cashflow properties which aren't as readily available anymore… Any suggestions?
Some people just have no morals… I am shocked by your story but cannot say I am all that surprised…. Sorry you had to go through that!
Hi Glennsa,
I work for a Bank, and I cannot see any Bank having a problem with that. As long as you stay within your approved limit for your LOC then you will be fine.
The only other thing worth considering is that I believe it can affect you at Tax time somehow…. I will leave it to one of the taxation experts to fill you in on any possible downside on that part of things – but as far as the Bank is concerned that is not a drama!
Good luck!
Cheers,
Matt.
Thanks Mary. I have and still are reading many property books, have done extensive research on-line and listened in to many teleconferences. As well as this I have spent a lot of time researching Real Estate and their values in my area. The one area I really want to spend time researching is with the sub-division process. I really have little idea where to start with the whole process so this is what I will be focussing on now!
Thanks again Mary – I will do some more investigation with the council! Sounds great though I cannot wait to get started!!!!!
Sounds like you have been busy Mary! Good work though – looks like you have been making a real go of it and doing some great work! I do agree there is lots of research that needs to be done in the current market. I would love to start off by buying a large block, renovating the house and sub-dividing the and selling the vacant block of land. Hopefully we can end up with a free house (so to speak). Anyway I need to do lots more research, as I am not all that familar with the process and rules as far as sub-division goes.
Does a pretty straight forward sub-division take long to get council approval and get ultimately sub-divided? Have you looked into (or done) a sub-division on a property that is not on a vacant block. Where you keep the dwelling at the front and sub-divide the land behind?
Sorry about bombarding you with questions – I am just really interested in the topic and excited about getting started!
Thanks again.
Matt.
Hi Mary,
Thanks for the comment. My partner and I live in the North Eastern suburbs in a property we bought late last year. It has been my dream for quite some time to renovate / develop properties – so will be looking to go down the same path as you by the sound of it.
We are currently renovating our PPOR to unlock some equity that we will use as a deposit and to renovate another property. Are you able to tell me a bit more about your first few deals and how you got started? Are you still making resonable profits (bar the one you just sold to reduce debt)?
Are you selling your properties once the renovation / development is complete or keeping to rent out? I am thinking that we will renovate and sell for a profit on the first few deals to build up some capital before we keep some of the completed projects. This way you can keep moving instead of waiting for more cash / equity to invest in the next project.
Thanks again – I look forward to hearing more from you!
Cheers,
Matt.
Haha that's fine Ash – not a problem at all. There are plenty of deals out there and the more people that can be successful the better! Feel free to let me know how you go too – always happy to hear success stories etc. It would be great if we could help each other out in finding more cash rich people to work with.
Hi Jebb,
Sounds like you've given its lots of thought – that's a great start! You're coming back at a great time – given the latest interest rate cuts, finance is extremely affordable and there are lots of opportunities to find or make cashflow positive deals.
My strategy is always to use my capital as a deposit to purchase as many cashflow properties as possible. This way you are spreading your risk and maximising the potential for capital growth (eg. 10% capital growth on 5 properties gives you more $$$ than 10% on 1 property).
Anyway there are a lot of great properties out there at the moment if you know where to look for them!!
Good on you for taking action – and good luck!!
Cheers,
Matt.
Hi Russ,
Good on you for taking the first step with reading the books and getting on here! Positive cashflow properties are a lot harder to find than when Steve originally wrote his books! A lot of the time you have to add value or solve a problem to be able to create cash flow positive properties. Don't get me wrong though, there are still plenty of cash flow positive properties out there if you know where to look.
Once again – good work on taking the first step and all the best with your search! Feel free to contact me if you want any more information.
Cheers,
Matt
Aussie Investment Properties
'Taking the hard work out of finding great Australia Investment Properties'
http://www.aussieinvestmentproperties.comSounds like you've built up quite a fan base bzmum! We are all really enjoying your renovation story! Sounds like you're doing a great job! Keep up the great work, and we look forward to hearing more from you soon!
Cheers,
Matt.
Hi Damian,
I notice it has been around 6 weeks since your last post. How have you gone with your plans? Have you made any in roads? I am interested in hearing how you have gone and also what sort of properties you are planning to market to your potential customers. Are you finding positive cashflow properties or are you marketing yourself simply as a buyers agent?
Look forward to hearing about your plans!
Cheers,
Matt.
Thanks Courage Man! Coincedently, I actually just bought a book from an Investor Bookshop at lunch time and it is called 'An Intelligent Guide to Australian Property Development' by Ron Forlee….. What are the odds….. Anyway I will have a read over that and hopefully get started on my first project.
Have you read this book? Do you have any experience in this area?
Nope, not related to a Jay McLean (that I know of anyway!).
