Forum Replies Created
Well here goes Goldie, (for what it’s worth)
First of all, make sure that the rent you pay is less than the rent you receive from you former PPOR (that is, the house you are leaving behind). That is very important, at least it puts you in front before you’ve even started considering any investment opportunities.
Following this, look at the pros and cons of borrowing agains your home (the 50K) as you indicated, using it as your deposit on your IP. If possible, try to ensure rental return on the IP you purchase will cover the mortgage repayments, and you should be pretty set. If this is not possible, at least try and find a property that can be negatively geared (with as little out of pocket expenses as possible to you).
It sounds easy enough, and certainly these are not the only options. Depending on what your future plans are…you may be better off selling your current home before you move. There are many questions that need to asked, and things to be considered before you decide one way or another.
Please don’t take my words as gospel; it is only one opinion (and by no means, the correct route by any means). Talk to those in the financial know who are better equipped to advise you on such matters as mortgage costs etc etc.
All the best, if you need to feel free to ask for further clarification.
Cheers,
Jo
Hi Goldie,
Before I give your question too much thought, can I be so blunt as to ask you about where you will be living, that is, are you yourself going to be renting???? If so, this may affect the decision of what you buy.
Jo
Along the same lines, there are also No Document Loans available.
Jo
Originally posted by GOLDIE:Hi Tycoon,
I have resigned from my stable job in Adelaide to move to the warmer climate of Cairns and have been thinking along the same lines as you. I saw an accountant about buying property with no job initially, and was told that the banks are happy to lend you money on what is called a low document loan. This accountant said that my husband and myself could get up to investment loans this way. Does anyone know if this is correct?
[blink]Goldie,
Low Document Loans are generally loans that are lending institutes offer investors but at a higher rate. I believe (and if anyone out there knows differently, please feel free to correct me) they are normally available to investors who have a long term history of investing. (????)
Jo
Originally posted by MiniMogul:there is absolutely such a thing as waterfront CF+ve.
cheers – Mini.clue: it’s not circular quay
Yeah but the duck pond just doesn’t cut the grade somehow [lmao][lmao][lmao]
Sorry, couldn’t resist.
Seriously, if that is the case, why bother with circular quay, surfers or the like??? Maybe these places are better off as their remoteness will mean you actually get some peace and quiet, away from the hussle and bussle of tourism.
Jo
Aceyducey,
I am sorry to say, but I think things have gotten blown out of perspective here. Celivia is right, nowhere did she actually mention the word ethical, although I do see that you could have read it as an implication of such. However, it is simply a case of Celivia voicing her opinion about a common (yet, unquestionably illegal) practice.
It does happen all the time; that doesn’t make it right, but unfortunately it is not something that can be policed 100% (the internet is a great example). And besides, there is really little action one can take (legally speaking) unless that work is reproduced for material gain. In short, this is not totally “black-and-white” or “cut-and-dry” there are many shades of grey here.
Celivia did not say anything against Steve or anyone else, nor did she mention the ethics in what transpired in the original message. Her opinion is as valid as is yours to you; she has the right to her opinion as do you yours.
C’mon, you know better than that. And that comment about her attitude……I thought better of you than that…..that is the kind of heated comment one would expect of me (I can get quite “nasty” at times, just ask RussH !!!!). Your posts have always proven (by what I’ve read) to be fairly level-headed and unheated.
Let’s play nice….
Jo
Originally posted by Celivia:What about taking advange of desperate people who are financially struggling?
Paying them peanuts for their property so YOU can make more profit.
Is that OK?
HmmmYou know Celivia,
there are some people in here that will more than likely take that as a direct attack on them [blink] or that will think that you have a twisted view of rich people being “evil” [angry2]
Either way, you are entitled to your opinion, and I hope they are mature enough to actually see that you are not attacking them, just illustrating that sometimes people’s priorities get distorted.Cheers,
Jo
I mean, is this question a hypothetical one just to satisfy your curiousity or are you trying to sus out the crowd here, as to whether you should act in a moral or business capacity?
Jo
Is that what happened to you?
Jo
He took off all his clothes, and crossed naked (but happy) [blush2][biggrin][blush2][biggrin][blush2] LOL
Jo
He took off all his clothes, and crossed naked (but happy) [blush2][biggrin][blush2][biggrin][blush2] LOL
Jo
Wow Russ,
That was some speech……I don’t think there are religious fanatics that pay the same amount of homage to their Gods!!!! LOL
Seriously, people are entitled to their opinion; there has been no wrong here; just an airy of same.
That was very nice of you to blow wind up/for Steve like that, hope he appreciates it!!!! Or did you get paid for it?????
C’mon see it for what it is…a bit of banter, and get off your soapbox.Jo
You can view it as “prices dropping” but in actual fact, they are just reflecting the “actual” prices that should have been achieved way back when people were paying ridiculously high prices for your average home. Now that interest rates are uncertain, boom is over, the prices are realigning to more realistic price ranges….no great mystery I would suspect.
As for investor being fearful…..what of? Clearance sales?????? Any real long term property investor will know, that this is a temporary thing, and property moves in cycles, so as someone else pointed, it is just a matter of sitting it out.
What’s to fear????????
Jo
Hi EmZY,
Look, you can go forward, but it depends on how “motivated” you are. I purchased my first property only weeks before turning 18, and I was going to school full time, but working part time, 2-3 jobs!!!
With any luck you are (a) living at home, and (b) getting some sort of study/student benefit (Austudy) whatever.
Anyway, there are legitimate ways to get some kind of tax deductions because of your studies and/or low income.
You seem to be doing the right things, studying and saving. Keep it up, you get there…Cheers,
Jo
Get a part-time job, save, save, save!!! Make sure your 3.500 earning the maximum interest possible, and keep up the good work. (And…study hard) LOL
Jo
In that case SIS,
Maybe you should wait till you return to decide best way to spend your money. However, paying off your credit card debt, can’t be done soon enough in my opinion.
Good luck,
Jo
Man….typos!!!! I mean “Highly” (at last) [blush2][blush2][blush2][blush2]
Jo
Sorry, meant “higly” not “hardly” doubted.
Jo
Originally posted by glenetti:Anyone managed to buy a beachfront property that ended up with +ve cashflow from the beginning?
Good question: would love to know the answer to that myself; I hardly doubt it, but would be only too glad to be proven wrong. And if so, where did they buy??? [blink][blink]
Jo
Elves,
I am not sure if I am to late with my response to your question, as I think you said you had already spent the money in question on property? Is that right? If not, and you are still wanting to know “how to” make use of your funds, I would have to agree with everyone else in here who have repeatedly voiced the “pay off your credit card” suggestion. After all, interest on credit cards in far greater than any profitable property return. I too have a credit card (only one) but nevertheless, the interest is quite substantial. I have found that the best way to make use of a credit card (wisely???) is to repay any purchase money within the 45 day “interest-free” period, that way, I am playing with the bank’s money and not my own. Basically, I get to use their money for free! [cigar][cigar]
SIS,
Your situation is somewhat different, however, again, as with Elves, I would suggest pay off your credit card debt first.
I would be glad to put in my 2c worth in advising you, but I am not real sure of your situation. I thought you were going o/s in a few weeks??? I am not really sure….[blink][eh][hmm]All the best to both you,
Jo
