Forum Replies Created
I think i might be misunderstanding something here pin, but ppor loan isn’t tax deductible.
I dont think rugby has an investment loan yet??? am i right rugbyfan?
Josh
I’m not quite sure i get what your trying to do but…..
when you take the money out of the ppor #1 and into an ing account for 8 months what benifits does this have?
Why not take it out when you need it for the ppor #2.
If you redraw against ppor #1 for investment that loan is tax deductible but the rest (remaining on the house) isn’t.
I hope this kinda answers what you’re after. A good accountant will also be worthwhile, they’ll give the best advice.
Josh
Has the loan on your ppor been paid off? Since the interest on it isn’t tax deductable you may get a better return.
Josh
Shirley,
I know townsville had a large student population but I thought it mas mainly an army town.
Josh
Hi ricky.
buying a ppor does provide a sense of security, and with your numbers they do look alright, The main thing is once you’ve paid it off whether you’re happy with it or will then decide to upgrade to a bigger house and a bigger morgatge.
If you can resist that (and the put more money doing expensive reno on the house) you’ll probably come out on top.
I was thinking the rent your own house from a trust as I don’t plan on staying around here in the long term but I think it’s a good place to buy. Might be cheaper on stamp duty etc.
Also the fhog was an issue and I thought with a trust you could still get the fhog but as mel pointed out it doesn’t really matter, you can still get ips and still get the fhog.
JOsh
Hi westan,
I’ll agree with flexability and reviewing your plan every so often. I think for property this is probably the best option, however for the stockmarket a more rigid plan is needed. Changes should only be made with future buys, preferably with no money in the market as this may cloud your view. Fortunatly with property a slower choice doesn’t always spell disaster.
Maybe It’s time i start writing a plan for the property part of my portfolio.
Josh
As terry said, not a wise move as you lose the tax deductability of the loan.
However I would look at paying minimum/fixing the investments and trying to pay down the ppor loan down first. I’ts intrest isn’t tax deductable.JOsh
I’d be interested to know if anyone here had a plan written down for property investing.
A trading plan is essential for the stockmarket, what about the property market?
Josh
Well I must say I’m just starting with this property thing. I would probably say that now might not be the best time to invest in property as good deals are hard to find.
Personally I’m waiting a bit and trying to save a bit more. However now is the best time to learn about property as there are plenty of people out there who are interested in this.
Chris, a small business can be a jail depending on what type of business you run. Most involve a lot of work and review/maintenance even if you don’t work there. If you do work there it is a lot of work. However some small business can be a more set and forget (relatively) if you can get staff to run it well for you but it does cut down on profits.
Josh
thanks mel
Josh
The only problem i think is that the lender takes most of the reward and little of the risk.
Josh
I think there is a place for both in any strategy.
I think that generally higher yielding properties will provide lower CG which in the long term 4% of a good cg IP is better than a 10% yield of a poor CG IP.
However neg gearing at some stage will be limited to the repayments/salary you make.
Josh
fatboy, I would agree with the not investing in something you don’t know. (paying of the ppor would be my choice). There is a lot to learn about the stockmarket and there are many ways tto do it. That is one of the reasons it is so fascinating.
I believe that the stockmarket has ads and disads over property and that it moves at different times to property. I think the biggest disadvantage is with the difficulty to gear in the stockmarket where as with property leverage is pretty easy. I think higher returns are also possible but property provides a better income stream.
BTW phil the new topic is up.
Josh
Mel, I could be wrong here but I thought once you bought a house (IP) the fhog no longer applied.
Josh
Mel, I could be wrong here but I thought once you bought a house (IP) the fhog no longer applied.
Josh
Ok Phil, I’ll put ‘house’ a new post in general ‘house’ investing.
Josh ‘house’
I’d ride the horse!
I think it comes down to how disciplined you are at saving.
1) PPOR pay off loan/not tax decuctable interest and then invest will set you back a number of years in investing.
2) Rent, invest the difference (this is the hardest for most people to do) I believe will generally put you ahead thanks to the extra years compounding.
You have to remember that generally the house isn’t an asset. It doesn’t produce income/deductions and you can only get cash by selling. (without borrowing against equity which means interest)
However (being the devils advocate) a home does provide security and if you do pay it off really quickly, don’t keep upgarding to a bigger house and a bigger morgatge you will probably be better off in the long run. It also provides a sense of security and a place to call home which to some people is invaluable.
3) How about buying a house through a trust and renting it for yourself. You get a good tenent, no stamp duty on transfers etc, deductions and extras. Only drawback is CGT but personally I think some of the advantages may outweigh the negatives depending on your individual circumstances.
Josh
Disclosure: I’ll probably be going with option 3 so I’m a little biased.
Personally I’m not in the housing market, still learning and I don’t think it’s the best time to buy.
I’ve bought into the biggest circus in town; the stockmarket.
Josh
Another Q along the lines of C2….
Is it possible to rent your own place through a trust of some sort. ie owned by the trust but you rent from them?
Josh
Tom
I like the idea of the motivational/discussion group. However becareful of discussing stocks or the stockmarket as you may become one of the herd. (not just JV’s)
Unfortunatly it’ll be unlikely i’ll make the 25 odd hour trip down to sydney anytime soon. Pity you can’t live in north QLD and be close to sydney.
Oh and perhaps watching old cheesy tv shows nay enlighten you to the world of monkey, sandy and pigsy. Ayyyeee Ayyyeee.
Josh
