Originally posted by L.A Aussie:
Hi Simon.
Fair enough I suppose. My post was a bit oversimplified, but would you buy $100k of shares without insurance though?
Also, have you ever bought $100k of shares with no money down? I haven’t – I’m not brave enough, but I will do it all day long with property.
The main point of my comparison is the relevent…[Read more]

Originally posted by L.A Aussie:
Originally posted by APerry:
Asset Loan are a public company, go to their web site and get a copy of their annual report and you can make your own mind up re their stability. They are a short term aset lender, as suggested by their name, with ratesstarting from around 3% per month. They don’t lend at high LVR’s, I…[Read more]

Consolidating is a tool – not a solution.

He should close the accounts and try for a personal loan at around 60% of what he is paying now.

But if his behaviour doesn’t change it can be a disaster.

I have seen people do this and 12 months later be in a worse position with maxed out cards and a huge personal loan.

He needs a financial goal and a…[Read more]

I have five bedrooms which I get $540pw. So mine is more. Really depends on supply and demand. $100 – $120 pw for a room in my area is reasonable. there are cheaper but not in as nice a house. There are higher and I guess they get more. Some have a fridge per room and extra bathrooms etc. Mine seems to fill well and everyone is happy.

re…[Read more]

Originally posted by L.A Aussie:
Originally posted by swiftos:
Hi

My opinion is to look at why you are investing in the first place. If your aim is cash flow and you dont mind not getting capital growth then regional areas are great in that they will either cover your costs or cover them and give you some left over,or positive cash flow.

I have…[Read more]

It will affect your borrowing – although you still have options.

If you were my client I would be discussing getting as large a LOC against all property investments as you can. Leave it undrawn and it will cost no interest.

But it will be there to use when you need it without an application showing the casual employment.

Any additional finance…[Read more]

Based on the info I believe it would be deductible.

but you shouldn’t act on a stranger’s advice …

speak to your accountant.

Simon Macks
Residential and Commercial Finance Broker
simon@mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation…[Read more]

What are your plans for this property?

Simplistic advice says that if you are buying it to hold forever and it is pos geared then the lower income earner is best. This would also be the case if you wish to realise a capital gain.

But things are never simple and you probably need to speak to your accountant.

Simon Macks
Residential and…[Read more]

Most of these are exposed to LMI regardless of the LVR. This may mean an extra premium and also means that your borrowing limit may be hit earlier – most finance rejections are due to LMi and you will have more loans under LMI.

Also check for early repayment penalties – they can be pretty high if refinanced/sold in the first 3-5 years.

They are…[Read more]

Sounds like someone’s website needs to be made simpler to understand.

A FULLDOC loan is a standard loan that most people get.

The website must mean it is either:

1. Suitable for a normal loan with conventional interest rate, rather than a loan set up for unconventional lending situations or

2. Not suitable for any LOWDOC or NODOC loans…[Read more]

Originally posted by L.A Aussie:
Originally posted by Mortgage Hunter:
I agree with Dave but make the following points.

Period of occupancy to qualify to keep the FHOG is 6 months not 12. 12 months is a common misconception.

Another benefit of buying it as your first PPOR then renting is the CGT exemption you will enjoy.

Cheers,

Simon…[Read more]

You can rent your PPOR for up to 6 years without any CGT impact.

If you buy another PPOR then this ceases. You can only hold one PPOR at a time for CGT exemption. The exception is if you are selling the first ppor then you can overlap them by 6 months.

Simon Macks
Residential and Commercial Finance Broker
simon@mortgagehunter.com.au
0425 228…[Read more]

I agree with Dave but make the following points.

Period of occupancy to qualify to keep the FHOG is 6 months not 12. 12 months is a common misconception.

Another benefit of buying it as your first PPOR then renting is the CGT exemption you will enjoy.

Cheers,

Simon Macks
Residential and Commercial Finance…[Read more]

Originally posted by Dougiejg:
Mortgage Hunter
What do you think the disadvantages might be?

I can see a risk of disagreement between members down the track.
This could damage friendships.
Always a risk of losing money, but that is in any investing.
Certainly there is a great deal for us to learn, and that is scary in a way, but not really a…[Read more]

Originally posted by Dougiejg:
Hi all
As we see it, the advantages would be:
– Working as group gets more work done than as individuals
– Motivation is increased
– Pooling resources can allow us to acquire more properties quickly.
– It will help us to become more businesslike in our approach to investing.

What do you think the disadvantages…[Read more]

You have wandered down the wrong track just a little.

It is simpler than what you have described.

At the end of the FY the IP will have made a profit or a loss (pos or neg geared).

You simply add that profit or that loss to your taxable income and pay the tax on the end figure.

Sometimes the loss may drop you to a lower tax bracket or a profit…[Read more]

You could build, move in then sell it CGT free. Hopefully for a decent profit. Not as easy as it was a few years back but still quite possible.

Or keep it and use any equity growth to fund the first IP.

Plenty of ways to skin this cat. Hasty decision to sell is one route to take but think about why you bought it and do some research into the…[Read more]

The key really is whether he is selling you his stock for a huge markup or not. That is where people get hurt badly.

If it is just $550 for a decent financial education and plan then that seems cheap – another warning sign …

My personal belief is that you can invest time and money in your own education via these websites like this one here,…[Read more]

Originally posted by erardent@hotmail.com:
Originally posted by arrowsmith:
I am renting. My partner & I have good incomes & no dependents and I am 30 years old.

We have a very good combined disposable income. We are just starting to build savings after a long trip overseas.

Our rent is cheap (1/7 of our income) but the place is very old and run…[Read more]

Originally posted by cama20:
Originally posted by Mortgage Hunter:
Originally posted by arrowsmith:
DLPP,

A) I would lose the 10k first home owners grant

Tragically common misconception.

Suggest you reread the legislation.

There is a link to your State’s requirments on my website.

Simon Macks
Residential and Commercial Finance…[Read more]