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melbear
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@melbear
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March 9, 2004 - 9:49 am
Dom, either see if you can negotiate the price with the vendor, or ask them to fix it. Depends on how much they want to sell I guess.
If you can’t get any discount, ask yourself is it still worthwhile to buy factoring in any extra costs you now will have to pay to treat the damage, and get rid of the termites.
Cheers
Mel
melbear
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March 9, 2004 - 9:44 am
If you hold the IP for more than 1 year, your CGT is only on half the gain, at your marginal rate.
Cheers
Mel
melbear
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March 9, 2004 - 9:42 am
For FHOG you have to reside for 6 months.
For CGT purposes, I don’t believe there is a set time, but you do have to prove that you lived there, and if you moved within a month or so, you need to have a reason for it. The CGT free term is 6 years, regardless of living there 30 years or 1 month before moving out.
Cheers
Mel
melbear
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March 9, 2004 - 9:39 am
Bernard, if your tenants had big deposits they should definitely be able to get normal financing. I would only offer the deal to them if they for some reason couldn’t obtain normal financing, and really wanted to buy a house.
I think it wouldn’t be too good if they took you up on a deal, paid above market, and a higher rate, and then found that they could have got standard financing, and bought a cheaper property. Unhappy wrappees!!
You could perhaps offer them the traditional ‘vendor finance’ of a 2nd mortgage, at a higher rate than standard. this way they get the bulk of the funds from a traditional lender, and you lend them the rest. You get some cash, and some income on your loan to them this way.
Cheers
Mel
melbear
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March 9, 2004 - 9:29 am
Jacqui, I would check it out, cos my understanding is that you would have to pay CGT for the initial period it was rented also.
Cheers
Mel
melbear
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@melbear
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March 9, 2004 - 9:20 am
Good, except if you work out any of the ‘answers’ you could come up with, all of those numbers on the chart have the same symbol.
Cool sound effect though.
Cheers
Mel
melbear
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March 9, 2004 - 9:17 am
Congrats Aussie.
Cheers
Mel
melbear
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@melbear
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March 9, 2004 - 9:15 am
BlackJack, you said you had one?
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Mel
melbear
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March 8, 2004 - 1:08 pm
Lenders Mortgage Insurance. If you want to borrow more than 80% of the value, most lenders will hit you with this fee – it covers THEM if you default and they don’t recover all costs from a forced sale, and the insurer will come after you. []
Cheers
Mel
melbear
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@melbear
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March 8, 2004 - 1:05 pm
Ken, it really depends on how long you intend to keep it as your PPOR, and whether or not you want to sell it.
If you plan on making it an IP in the future, maybe you should put it in a trust. if you plan on selling it, maybe you should buy it in personal names to keep the CGT exemption.
Cheers
Mel
melbear
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@melbear
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March 8, 2004 - 1:02 pm
recovery, if you check out http://www.propertytalk.co.nz they have a huge library of links that may help. Plus there’s a lot of Kiwi investors that should be able to answer your questions too.
Cheers
Mel
melbear
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@melbear
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March 8, 2004 - 1:01 pm
Plus the rent is still less than a 5% return. I wouldn’t touch that! Especially not a guaranteed rental.
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Mel
melbear
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March 8, 2004 - 12:59 pm
I agree with Pisces. i think you might be stuck. Tell the agent to drop their fee if they’ve admitted to the mistake!!
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Mel
melbear
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@melbear
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March 8, 2004 - 12:58 pm
Lemmings just follow the crowd – don’t think for themselves at all. If one goes over the cliff, they all do, etc. etc.
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Mel
melbear
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@melbear
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March 8, 2004 - 12:45 pm
SIS, the ‘paying yourself first’ way to go is the way every wealth teacher suggest – especially the richest man in babylon.
It’s your investing money. You may pay it into your loans, etc. etc., but you have to do that first. As you said, you apportion everything, and spend what’s left.
I think you are doing what Bill has said, but you see the ‘pay yourself first’ deal as the money you can blow.
Cheers
Mel
melbear
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@melbear
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March 8, 2004 - 12:29 pm
I ALWAYS get a contents insurance policy – generally the minimum I’ve got is $10K.
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Mel
melbear
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March 8, 2004 - 12:25 pm
Hey Ben, Trundle is near (ish) Orange isn’t it? My cousin went to Kinross at Orange, and was friends with a guy whose folks had a farm at Trundle?
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Mel
melbear
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@melbear
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March 8, 2004 - 12:09 pm
Hey EZ, it’s the small ones you gotta watch out for []
LOL
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Mel
melbear
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@melbear
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March 8, 2004 - 12:06 pm
Hey recovery
I actually bought this one site unseen, and was having a look when up that way to look at one near Gunnedah that my Uncle bought – also site unseen! []
I did have pest inspection and building inspection done.
Having been there now, and knowing a lot more about the areas, I would definitely consider buying again.
Cheers
Mel
melbear
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@melbear
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March 8, 2004 - 11:51 am
CGT will be sale price (less costs) – purchase price (plus costs).
the resulting profit will then be halved if held for more than a year, and added to your income. Tax is then paid at your marginal tax rate.
If you’ve held it for more than a year, at worst you will pay $25K in tax. At best, well, depends on your situation.
If your IP loan is P&I, I would change it to IO, and see if that saving will help. If it is already, then factor in the tax, and perhaps it might be wise to pay off your bills – or sit down and work out where your money goes each month, and see if you are ‘wasting’ any of it that you could put towards the bills.
If you pay down your homeloan, you can always draw down some of the equity to invest (tax deductible then). Lots of things to consider before rushing out and selling.
Cheers
Mel