Forum Replies Created
Thank Anita,
Will keep shopping around for a better deal.
Micasa
Hi Terry,
Bankwest would be prepared to lend up to 70% on their business edge loan @7.92% fixed for 3 years. The application fee is .5% of the loan amount, therefore if the loan amount was say $860,000 the app. fee would be $4,300, which is a bit of rip if you ask me.
NAB have a rural loan for 6.99% but the farm income has to be less than $20000 a year!! not sure why a farm earning more income is a problem? does not make sense to me.
Micasa
Hi Ben,
I don’t plan to work the farm just yet, only live there. The place is returning 50k net and is managed by a contractor. There will be a net increase of income to 65-70k in two years, as the young crop matures. There is also enough room to increase production in the long term, which would see a net return of 90-110k ” but I mean long term! 8 years!
I’m told by my broker that this will be classified as a commercial loan, which might mean higher interest rates and more cost! [angry2]
It is a lifestyle choice, so that is worth more to me than money…if all fails I can sell my investment properties and pay off the loan…that is plan B!…not good from an investment point of view…but hey you cant take it with you!!
Cheers
Micasa[cowboy2]Thank for the replies. Good to know that I don’t have to settle for a 30% deposit.
The property is on 38 acres, with a house valued at $600.000. Its a working farm with a current annual return of approximately $50000 net.
Micasa
Another Xmas in Iraq. Will have a couple of beers and a nice lunch but its not quite the same as being home. Back to Perth for NY so not all bad!
Thank all, I guess the tax man always gets his share in the end!
If you work in Joondalup then South is not an option unless you want to travel all day.
I live in Perth and recently purchased my 5th investment property in Scarborough. I have two more in Innaloo and two south of the river.
If you are first home buyer and you need to be close to Joondalup I would be looking at Yanchep, Quinns Rock, and Two Rocks. As close to the beach as possible.
It also depends on how much you want to spend and what the house is for. If its $500000+ family home then Kallaroo still has some value properties close to the beach and city.
Regards
M
Just bare in mind that HSBC (I have all my loans with them) will only lend 65% LVR after you have 3 or more investment properties with them…I just found that out after making an offer on my 4th investment property!
Thanks all…I think I will feel more comfortable going with the A$ loan. The 2% mark up on the loan definitely takes the edge of the US$ loan.
Cheers
Thanks for the replies. The offer I have been made is: HSBC US$ Rate 3.38% (up to 2% margin). Does anyone know what they mean by (up to 2% margin?)
The other offer I have is with HSBC also using their new Home Reward option starting at 7.24% and reducing over a two year period.
The loan is for A$550000 so if I take the Us$ loan there appears to be a significant montly saving? Seems to go to be true, so there must be some pitfall to it all.
Thanks for the replies. From your comments I realize that, CGT sucks![angry2] and it looks like I’m in a better position by holding on to both properties.
Thanks again.
Thanks Benny,
I will be sure to see my accountant on the Depreciation issue..,every dollar helps.
M
Hi Benny,
Thanks for the 3 steps…that sounds like a practicle, non-complicated plan of action. I don’t have an Execel spreadsheet, just… a calculator!…and OK you have me! what do you mean by “imbibing”
Micasa
Thanks for the replies.
I had not considered the GST cost for one thing so thanks for that info. The main reason for selling was to pay off the debt and end up with a +ve cash flow. I could borrow on the existing equity as suggested, but I though I would be in a better position cash flow wise if I sold. Both buildings cost me $250000 to build and the land cost was $210000.
The area has experienced rapid growth over the last year (the same fibro house that I bought last year on a triplex block for $210000 are now selling for $340000+ if you can find any) there has been a large number of developments in the area, which may indicate an oversupply in the near future. The area is close to everything and the shopping center is expanding so I can’t see that the location will lose any appeal, but the prices are getting high for your average family income, hence the though of selling before the market peaks.
I’m leaning to holding at this stage!
Thanks Felicity,
Not closing my mind…just doing the due dilligence thing…all this might be a mute point soon if this Derivex thing turns out to be real
Hi Phil,
Do you mean refinance my investment loans and pay off the PPOR?…would that not cause my investment properties to be further in the negative geared side?
My thoughts exactly…that’s why I though a return of 12% offered by We buy House was to good to be true…never mind 30%+
Thanks B,
If you can get a safe return of 30+% on cash on a regular basis, then you are on a winner. I have heard of that kind of return but usually its a high risk venture.
M
Thanks Terry,
I will be looking at trusts in the future, I have been told that you have to pay stamp duty if transfering existing properties, and that would be a big loss given WA stamp duty rates.
M
Thank Derek, I have one property on IO, the rest are PI, when I was thinking of rolling all the loans up into one I was considering IO. This would give one fully owned +ve property. Which I could borrow from for another +ve property. And all spare cash could be used to reduce the -ve properties.
M
