Thanks Simon[]

Also, if you are going to do a reno yourself, get a QS in before, as well as after!!

Why? Because they will put a value on the carpets, curtains etc. etc. that you are ripping out. Then you can claim that entire balance in this year, because they are now ‘dead’.

Cheers
Mel

Kiyosaki’s assertion that the stock market will crash is based on the fact that in America, when they hit retirement age (I think 65) they MUST start withdrawing their super/IRA/401k. They cannot leave the money invested and live off the earnings.

So, if x million people start selling the shares, and keep doing it over a long period, there’s going to need to be buyers with that much money to purchase them. If we’re moving into lower population areas, then he’s saying that there aren’t going to be enough people wanting to buy.

Cheers
Mel

If you have no cash I don’t know what the rock would look like!!!

Don’t you earn some massive salary (anything over $60K to me is massive[]). You could always spend less than you earn!!!!![]

If you’re talking spending cash, then I wouldn’t refinance at all, but if you’re talking investing cash, then I would be looking at getting an LOC against your PPOR (if I remember rightly you have a lot of equity in it). This way, you’re only charged if you spend/invest the money, but it’s there for you if a deal comes up, and you don’t have to worry about applying to the bank. Especially if you are looking at NZ. A cash purchase, followed by finance should ensure no huge problems.

Cheers
Mel

If your trust deed is written well, any company that any of the primary beneficiaries are directors of are also beneficiaries of the trust. It doesn’t have to be the trustee company.

Check out Dale GG’s manuals on Trusts. A must read.

Cheers
Mel

Tell the agents to put it to the vendor, and let the solicitors decide the insurance issue.

Lozza, are you talking about you being able to build the carport pre settlement, or subject to the council allowing you to build it?

See if your solicitor can word it such that you’re able to build it, but that the vendor’s aren’t 100% on what you want to do, as they might not sell it to you then and put in a carport themselves.

As for finding termites during renovations, your pest inspector should have picked that up pre exchange/unconditional.

I’ve gained access prior to settlement – the property was vacant so it didn’t matter. It would be a bit hard for a vendor to agree if they were still living there, so something to think about.

Cheers
Mel

1) Will exchange contracts in next couple of weeks.
2) $175,000 (commercial office)
3) Buy and hold, will possibly use some area myself at a later date.
4) $377
5) Not 100% yet.

Cheers
Mel

Shaun, sounds like a reasonable plan, as long as you do not spend any of the money on non investment things. Put all money pulled in from refinance in LOC on PPOR.

If your accountant calls you a tosser, move on, there are plenty of them around.

Cheers
Mel

Kat, when getting second mortgages on my properties, I have not been charged a higher interest rate, so it’s not been a problem in getting that second loan.

Getting the bank to release that security costs money anyway, so there may not be that much of a saving by cross collateralising. It also ties you to that one bank, whereas if you got the 2nd mortgage with the same bank as your current PPOR, your investment loan could then be with whoever you choose.

Cheers
Mel

Julian, that’s good news about the growth. Well done.

I own 8 properties at the moment (only 1 in my name, all others are joint ownership), and our family trust has 2 under contract – completion 2006, value increased by $60K each since purchased []. Also purchasing an office, and a place in regional NSW in the trust – settlement probably in January.

With your QLD apartment, I would like to advertise for a tenant as close to (but before) settlement as you can. If it’s a big block, that will all complete at once, you could have some ‘fun’ trying to get yours tenanted.

Cheers
Mel

Hi Julian

Well done on your two properties. [] I bought one and a half when I was 19 (two tier marketed, but offset by buying Grandad’s half of his house with Grandma) and I thought I’d done really well. You’ve exceeded that though.

I’m guessing that you have a full time job and can afford and qualify for loans etc. My advice is to not get so hung up on sub $100K properties. Chances are that they are that price for a reason, and the rental returns in the towns may not be the best. For instance, a property that costs $70K more to buy, may only rent for $20 more, and as a tenant, which would you choose?

Talking to RE Agents is the best way, and looking at private sales also. Doing this though you need to know your rental market.

Cheers
Mel