MarkyMark

Remember that the deal DOES NOT have to meet the 11 Sec Sol to actually be cash positive.

If the numbers stack up, go for it. Don’t be too hung up on what is used mainly as a filter to get rid of obviously ‘not good for you’ deals.

Cheers
Mel

Hey Bear

How did you go? Is the tenant all signed up, and everybody happy?

Cheers
Mel

Can he not transfer it at whatever value he likes, but when it comes to CGT and Stamp Duty it will be assessed on ‘fair market value’, especially as the transaction is not arms’ length?

Cheers
Mel

Wow [] Julia

Mavster, I think you are stuck at the moment. Basically, the money you borrowed to buy the IP was deductible while it was your IP. Now that it is your home, it is not. Any loan that was remaining from that ORIGINALLY drawn to buy your previous PPOR is deductible. Moving the money around as you have now just makes it a nightmare…[Read more]

Ours was a solicitor. He’s obviously one of those ‘victim’ mentality people.

Unfortunately, they lost their house in the Canberra Bushfires last year. They have onsold their land for a massive price – more than their house cost, so add to that their insurance payout, and hey, instant $600K or so.

I offered to provide furniture, and that they…[Read more]

Hi TIG

Before you go making any decisions about selling etc., I would make a serious effort to find out what your borrowing power is. To this end, I would contact one of the many brokers on this site – they will let you know fairly quickly where you stand, and as they all invest themselves, they could probably give you their opinion on the best…[Read more]

Hi Jackie5

Welcome to the forum. That doesn’t sound like such a good return on your fully owned property. $170 per week?

Contact one of the Mortgage Brokers on this site, they’ll help you out re your finances. As for strategy, if you can’t afford to subsidise the properties in the short term, you’d be best looking at buying +ve…[Read more]

kay, Huey is a lovely lady![]

I can’t say that I have ‘lost’ friends over my successes (or otherwise[8]) of investing, but over time I do see them less and less because we are doing different things with our lives. It’s spot on with the kids too – most of my friends have kids now, and I don’t, so when I do see them, if at a party or something,…[Read more]

Hey Huey

good to see you are back.

Check out your agreement with your PM. We found (to our horror) that the PM had put a clause in saying that we had to pay THEM two weeks rent for every property that currently had a fixed term lease. If this is the case with you, I would wait until a month to go, or at the end of the lease – and make sure…[Read more]

Tell me – What is the ‘bad side’ of property?

Did your financial planner buy a unit up there in QLD in the early to mid 90’s? Did he lose money hand over fist?

Other than that, if you buy well – which you obviously have done – and hold for the long term, how can you lose?

In my opinion, you lose by selling, in agent’s fees, in CGT, and then in…[Read more]

Mijava, that was probably Victor Ollis, of um, kay, what was that firms name again?

He’s probably going to sell them at a profit to sydney folk, and move pensioners to live out there.

Cheers
Mel

Bill, what we did was to take to our solicitor, in point form, what we wanted included. Also remembering to allow the tenant to place a caveat on the title, to ensure that there will be funds available to ‘give’ them when the contract is up.

I had another response, but the computer ate it, so I’ve abbreviated somewhat.

Cheers
Mel

Damon, you say they are valued at $250K, yet your debt is only $125K, and it’s costing you ‘just’ $200 a week to have created $125K in 3 months?

Why don’t you build a house on the one where building costs would be least (for a good house though), and then rent it out – hopefully for enough to cover the extra loan repayments (building loan) AND…[Read more]

These days, the banks enforce you to obtain independent legal advice if you are going guarantee. Their solicitors are not prepared to explain it to you, for fear of the backlash.

I owned the above mentioned property jointly with my Dad (after Grandma passed away), and I wanted to borrow more money against it (only in my name). The bank wouldn’t…[Read more]

I’ve heard of people getting 6 month settlements done on valuation. I guess it depends on your relationship with the bank, and how you present the deal to them.

If you can give them a whole heap of market research (accurate of course), and perhaps show them that you got a discount on purchase originally, then you might get it through.

We had…[Read more]

With only a $200 gap (I assume monthly, or is it weekly – ouch!), you should be able to borrow some money to either buy a cashflow positive place, or better still, build on one or two or three of your blocks of land, to increase the income. Of course, you’ll be borrowing more, but if your rental can cover all borrowing costs, plus that $200,…[Read more]

Hi aussie

You will definitely be up for CGT and more Stamp Duty if you transfer, so I wouldn’t advise to do that.

What you could do though, is set up a trust, refinance the properties you have to get some cash to invest, and lend it to the trust so that the trust can then purchase for you the cashflow positive properties.

If you have a surf…[Read more]

Manofaction, I would have thought that all bookstores would stock this book continually in their ‘business’ section. It’s certainly been in every Collins, Dymocks, Angus & Robertson that I have ever looked in.

Cheers
Mel

Hey Tools, as they are both deductible does it matter which is paid back?

Although I suppose it does if you sell the shares, but if you’re just paying it off, it shouldn’t affect your ‘income’ as you still claim all the interest?

Cheers
Mel

My parents helped me out with my first purchase (of half my grandparent’s house) by putting their property up as security, and going guarantor. I will be forever grateful, as there was no way (at 19) I would have had the deposit, even though I did manage to save about $8K in my first year and a half of working.

If you have more than 1 kid (i am…[Read more]