Forum Replies Created
You will pay CGT on the time you rented the place out. If you move in for say, a year you will save CGT on that period.
I suggest you consider keeping it. Even if flat for 5 years you will have saved the cost of selling and also of buying another IP to replace it at that point. This is substantial.
If there is one regret I have with my IPs is the ones I sold to realise a profit. If I had held them I would today be at least $250K better off and I could easily have held them. I guess this wisdom comes with seeing several cycles.
A good broker will quickly let you know if the lenders will allow you to own both.
All the best
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I am with Redwing there. Let me get Scott to answer this for you!
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Professional Packages were designed for high income clients – today they can be enjoyed by anyone who applies for it.
Basically you get the Standard Variable loan with free offset and no fees at all. There are no application fees for the next IP and no fee to have it all revalued when you wish to buy again.
They offer a fee free credit card and a discount in the order of roughly 0.6% on the mortgage.
There is an annual fee of approx $200 – 300 depending on the lender. This is tax deductible if applied to an IP.
Even if you have some loyalty to your existing lender a broker can still advise whether it is the most suitable package. If they do identify a better one he will weigh up transfer costs before making any recommendations. The broker can also submit your loan application through his channels and monitor progress for you – no charge.
Depending on the lender he may even be able to negotiate a further discount for you.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Some times we get into the habbit of letting our solicators guide us when in fact a cold bear and a t-bone steak may be the fix.
That would be a Polar Bear Phil?
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
IO loan is my suggestion too.
Depending on your current lender I would be looking there for a Pro Package to start with.
I suggest you speak to a broker.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
We do it in a home we own and find that advertising on the uni accomodation website gets us tenants no problems.
It is more hands on that other IPs but I enjoy it and the kids I have a pretty fun people. I mow the lawns and pop in for a drink or toilet break every time – lets me have a good look around and I am always happy with things. Then again I am no tidiness freak!
In Feb I could fill 20 rooms easily. This time of year it is harder – I have one room empty and am struggling to find someone. Can discounbt heavily and fill the rest of the year but it is a little unfair on the other kids who are paying full rent. So wil lwait until they all leave end semester next month and rent the rooms for 50% to short term Asian English language students.
I like it.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Contact depreciator who posts here.
He can help you out using photos etc if need be.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
There are commercial products out there for anything and all LVRs are covered. Some are cheaper than others [biggrin]
Have you spoken to a good commercial broker?
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Why pay off any mortgage? Will decrease your cashflow.
Have a think about that for a bit and see what you think?
With IO on all loans you can probably get more property. Inflation will make the debt smaller each year anyway. If you do pay it down then do so in an offset account not straight off the Principal.
Discussion anyone?
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Depends on the council and their LEP I believe. In my area it can be either depending on the block size. Torrens is preferable but you can do more with a smaller block if you choose the strata route.
Is anyone interested in following the figures on this sort of thing?
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
That is not a reason to sell. A good PM will look after nearly everything for you in your absence.
Some really really rough estimates are 5% growth and 5% yield pa. Of course this growth is averaged over a longer period and could even be as high as 10% if you hold it over a boom. Some folks count on doubling the value every 7-10 years which is historically achievable.
All the best,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
As far as ground floor goes I think the rule of thumb is:
If there is no lift then lower the better. If there are lifts then higher the better.
Obviously an outlook plus breezes will be more desireable.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
You can claim deductions for the time it is available to rent.
You may be better to move into the property first so that it is established as your PPOR. You then have a 6 year period that you can rent it and be exempt CGT.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Property may not be you best investment choice. A 2 year timeframe is short – perhaps too short to recoup buying and selling costs let alone a profit – esp in this stagnant market.
Why sell it when you go overseas? Why not hold it longer term?
If you do need to sell perhaps consider another asset class that is more liquid?
All the best,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Equity is built in two ways.
Firstly by growth in the intrinsic value of the asset due to inflation.
Secondly with your savings. And rather than putting it into PI loan I suggest keeping it in an offset account – this lets you use it as you wish and not compromise the deductibility of the loan.
I refer to sophisticated investors as those who are experienced and have been in the business for a while. They generally see cashflow as being more important than reducing the loan.
Remember it isn’t the size of the debt that is important – It is the cost of the debt that matters.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Will you get more rent for doing it?
If not I suggest you leave it until it is between tenants – will be easier to ask for more based on the spruce up esp whilst it still looks sparkly new!
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
What the tenant says it true – it will cost you a weeks rent to get a new tenant and maybe more if they don’t take possession the next day.
Why don’t you split the diff and ask for $10? The tenant may be relieved it isn’t $20 and agree and save you the problem.
A good tenant is prob worth the extra $10 pw.
But what happens next year when you need anopther $10pw…..
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Amy,
Finance wise you are pretty well nearly there to buy something in this range. Just a little more for fees will see you done.
You are at an age where property is a great investment. Plenty of us older folk wish we had started at 24 or younger.
Please post any questions you have but right now you need to research, research and research to find the right market for you!
You might not get much in Sydney but remember that to get the FHOG you need to live in the property for 6 months so unless you are able to move interstate then Sydney might be where you start.
All the best and hope to see more of you
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
You can buy one right now with a NODOC loan at 7.1%.
However with a FULLDOC product I would need further info to ascertain your borrowing ability.
This isn’t too much help and I suggest you speak to someone in my profession to get the numbers run for you.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
How is the unit negative geared if you live in it.
Prices are pretty stable at the moment however many people agree they will rise again. With cycles averaging 7-10 years we may see movement in 5 years or so.
Factor in selling costs and buying costs and decide whether it is better to keep it for the next growth period. This is probably what I would choose to do. I am of an age where I have bought and made money and then sold. Only to see the next boom roll on by and not be well placed. I wish I had never sold.
The bottom line is really whether you need the money and whether you can invest it better in the meantime to get strong growth?
All the best
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
