Forum Replies Created
Yes I understand the lenders concern with rural areas (I personally agree, although some in here would not, and that’s cool…each to his/her own).
7 x 170 = 1.190 million debt
7 x 200 = 1.4 million debtWow, that is quite a hefty sum to owe, straight off the bat, and in consolidation with another person. I am a bit uneasy with partnerships, have been burnt before (mildly ofcourse, nothing fatal), hence to owe such a huge amount (even if shared between 2 people) is a frightening thought.
What sort of rental return are you anticipating to achieve from each of these 7 properties?
(I am gathering the info bit by bit, as it slowly painting a picture which I can interpret easily).
Jo
Harro,
How much a you planning to spend on each of the 7 properties?
Jo
Panicking?
0.25% on an average $100K loan would equate to about an extra $5 per week, if I have done my homework correctly.
If people feel “shaky” over an extra $5, then they really need to review their spending!!
Jo
Originally posted by Derek:Hi Globetrot,
Selling within 12 momths will make you liable for 100% CGT and as such any sale should only be considered after 12 months + 1 day have elapsed.
Ofcourse, thank you sooooooo much Derek (I knew there was a very important point I was overlooking)!!! [blush2][blush2][blush2]
Brendon, if possible, please please do try your best to at least hold onto the villa for the 12 months….trust me, Capital Gains Tax hurts, and to cough up 100% would hurt much much more !!!! [crying][crying][crying]
Jo
Hi Brendon,
Just a quick question, you said the villa is 8 months old, is that it’s actual life, or is that how long you have owned it????
Either way, my suggestion (and it is by no means the best option) is to hold the villa a while longer yet, for 2 main reasons:
1. The market is in a bit of a lull right now,
and you may not achieve the best possible
price for it. Especially as it is in a good
growth area.2. There is more value in holding such a property
in the longer term. Thus, I’d suggest you
wait a while.However, if you are really struggling with the repayments you may be better off to sell.
IMO selling a neg geared property, which has good CG potential to buy cheaper pos geared for the sake of saving some money, could be shooting yourself in the foot in the long term.
Nevertheless, please don’t take my word on it…seek proper financial guidance.
All the best,
Jo
Minimogul,
1. I did not take offense to your “sad” remark.
2. There is some truth to your analysis of my writing.I do believe that you can make money and still be moral in your actions (at the same time); I know, I have done it…LOL.
The bias that you refer to is not entirely the result of internal conflict as you outline. Although, I do question myself, my actions and even thought processes at times, especially as I am guilty of the “analysis-paralysis” syndrome every now and again, which probably stems from my psych background.
I can’t say I really gave too much thought to the somantics of the words I chose, however I must commend you on your brillant insight….you are not entirely off the track, and I daresay, have uncovered some of my weaknesses??? LOL
Seriously, I appreciate your opinion, and thank you for your analysis, it certainly made me think!!
Regards,
Jo
Originally posted by Misty1:Gee Monopoly,i dont think it was such a silly qu. that i needed ridiculing! Thanks Kay,that was a very informative & much appreciated answer.
Misty,
Sorry if you took it to heart…my comment was not intended as a form of ridicule. I was just trying to see the lighter side of what can be a gloomy outcome (i.e. interest rate hikes).
My second paragraph (albeit not real useful) half answered your question, just not giving actual specific number of times.
Please excuse my (poor, and obviously tasteless) attempt at wit. [blush2]
Jo
Hi Nathan,
Sorry to hear about your direct debit issue with CGU; hopefully you will manage to stop it, and organise insurance, maybe as a “pay upfront” method without the need to give out banking details.
Anyway, one thing no-one in here touched on….
You said that all of this happened while you were setting up your (home?) loan; perhaps…it is a condition subject to approval for same. Did you read the fine print before you put pen to paper. Most lending institution ask you to take out insurance cover on property that they will obviously have a vested interest in. As you did not specify an insurer of your choice, she (the shark) may have been obligated to appoint CGU whom the bank/lender (may) have a contract with.
Look to your paperwork before you hurl abuse….you don’t want to end up with egg on your face! [blush2][blush2]
Good luck,
Jo
Congrats Minimogul,
I always enjoy your posts, especially if they are to set me straight!! LOL
Keep up the good work (posts and IPs…well done) [jerry][jerry][jerry]
Jo
Oh Misty,
[lmao][lmao][lmao]I just love this question !!!
Well that depends on how the member’s feel at the time of their meeting; if they got lucky the night before, rates should remain the same, but if not, we are the ones they are going to f… [worried][worried][worried]
No seriously, it depends on what is happening in our economic market as a whole; inflation, unemployment etc etc etc.
Jo
Hi Joni,
I am assuming you are looking at buying a section (of land??), build on it, then rent it out as your IP.
Why???
Building can be far more expensive than buying an established home, but it depends on where you are looking at doing this…it may vary from one place to another.
My advice would be buy established IPs (much cheaper) and all the hassles have been ironed out before you even came along!! LOL
Jo
Originally posted by lifeX:Monopoly,
You have mentioned a few times your friend who read books and went broke.
I have read “catcher in the rye”, does that mean i will kill the american president?
Horses for courses babe.
[pimp]lifexperience
Hi LifeX,
No, I think the president can rest assured!! LOL I agree, absolutely “horses for courses” and so on. But I didn’t say he (my friend) went broke just because he read books, I was trying to highlight, that he took everything he read…literally.
Jo
Thank you all sooooo much….
I really enjoyed reading each of your posts. You are all are great bunch…and this is reflected in your comments.
I did not feel I was being “pounced” on (not in a nasty way, anyhow..LOL), and thoroughly enjoyed reading the diversity of people’s opinions.
Now, what did I do at this auction??????????
I stopped bidding; no….not out of sympathy, but because I thought the property was fastly becoming “overpriced” and even though I may have been able to knock them out, I don’t believe in spending money just to prove a point!!! At the end of the day, I have to remember, I am viewing the place as an “investment” and spending too is not wise. Maybe the situation would have been different if I were wanting it for my PPOR (thus introducing the emotional element) but as it stood, (con or not) they got the house, but from the expression on the husband’s face, it was not what he considered “a bargain”….oh well, that makes 2 of us, as I certainly didn’t think so either.
Many thanks again…..and don’t let it end there. It was fun.
Jo
Hey guys……chill out!!!!
Let’s get it straight, especially you Minimogul, it is not sad at all; I do not assume that Making money equates to not having morals; I resent that!!!!
I have made money, and believe me, I still have my morals in tact!!!
I will reveal what I did later, but for now, can you manage to just think outside the square and do as Lucifer_au did, and just answer the question without the soapbox, or hostility.
I am not here to judge any of you, nor do I intend to sentence you to death for your deeds or pronounce you as an immoral bunch who have taken advantage of the poor. Get a grip!!! LOL
Relax….
Jo
Minimogul,
I am specifically referring to oz. I have absolutely no doubt that NZ has CF+ properties which are located on waterfront….after all, NZ is surround by water is it not????
I was more curious to know about those here. Can you think of any? I’d love to know.
Jo
Originally posted by Chan$:Monopoly,
If you make mistake in your posted then you can edit it using the edit button on the top right corner of your posted.
Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]Thank you….cool; now I can delete the double ups etc [biggrin][biggrin]
Jo
ChanS,
I agree that would be the best thing, however I have on several occasions approached RussH through PM and he has chosen to ignore me. Either because he feels intimidated or because he is just plain rude; either way, the choice is his.
I am happy to be polite, and do not make it my mission to attack anyone, but on this occasion, RussH chose to be the “smart-guy” and take my words literally without questioning their meaning. Very mature…
Jo
Originally posted by Pisces:>>………… as to whether you should act in a moral or business capacity?<<
Jo, what are you saying there ?
The two aren’t mutually exclusive. It isn’t a case of one or the other.
One can look at something in a business manner and it doesn’t have to be necessarily immoral.
Pisces
True Pisces,
but the question was to RussH, I wanted to know if he was more concerned with the business or the moral aspect of the situation. That is not to say the two (business and morality) couldn’t or had to go hand in hand.
I just felt like asking for clarification…is that a sin??? If so, guess I will burn in hell, hey??? LOL
Jo
Originally posted by Pisces:>>………… as to whether you should act in a moral or business capacity?<<
Jo, what are you saying there ?
The two aren’t mutually exclusive. It isn’t a case of one or the other.
One can look at something in a business manner and it doesn’t have to be necessarily immoral.
Pisces
True Pisces,
but the question was to RussH, I wanted to know if he was more concerned with the business or the moral aspect of the situation. That is not to say the two (business and morality) couldn’t or had to go hand in hand.
I just felt like asking for clarification…is that a sin??? If so, guess I will burn in hell, hey??? LOL
Jo
Originally posted by RussH:A low doc loan means low documentation.They charge a higher rate of interest because the risk of giving you a loan without knowing your income is a lot higher.It has nothing to do with being an investor or investment type loan.
One would be foolish getting a loan without knowing if they have the ability to service it in the worse case scenario.RussH,
Where exactly did I say they were “investment loans”????? I said, they are available to investors, however it is not “exclusively” for investors alone….anyone can access these loans. As for the history bit…a friend of mine, State Manager for a large bank here, said that banks like to see that the person(s) they are giving the loan to has some kind of history (investing …. not just in property, but saving their money).
Before you get your jockstrap in a twist RE-READ MY POST and try to interpret the comment as it is intended, or if it is not comprehensible to you and you have doubts….ASK ME !!!!!Jo
