Forum Replies Created
You will get the 6 year CGT exemption when you move out provided you don't buy another home.
So the first few months should be the only CGT liability that you have as well as any time it is rented after the 6 year CGT exemption.
Cheers,
Where are you located? I might be able to suggest a broker who knows investing inside and out.
Cheers,
Hannah Seaniger wrote:Please help me. what are the dangers of changing from fixed to variable interest rate.
Pretty obvious. If rates rise so do your repayments. The plus is that you will enjoy any rate falls.
Did WBC say if there was a penalty to refinancing your fixed loan?? Often there can be.
t803815 wrote:Hi all,I am thinking about investing aggressively in property over the next several years.
My plan is to change all of my residential loans (deductible and non-deductible) to interest only to increase my cash flow. My non-deductible loan has a 100% offset attached to it, so I plan to pool all of my funds into this account, which will also have the benefit of reducing the loan on my PPoR.
My questions are:
1. Does this sound like a reasonable configuration to increase cash flow in order to maximise my property investment potential?2. How do other investors in this forum structure their loans?
I like it.
Leave all your cash in the offset and borrow 100% for each property as long as you have the equity to secure the loans.
When you need more money secure it with a split loan against the PPOR which is now deductible. Use debt recycling principles to ensure all loans are eductible.
Cheers,
This is another fear experienced by all new investors.
Fixing rates is the obvios answer and many people fix for the first 3-5 years. After that rising rents will help with any interest rises.
Many, probably most, choose variable rates and factor in a rise or two in their calculations. Rate rises aren't the end of the world. Noone expects them to rise to the levels of the 80's. It would mean repossions all over places like Sydney and Perth!!
Cheers,
I use IO to maximise cashflow.
When I have accumulated enough property I will start on the Principal. I honestly don't care if I never pay off the properties and die with a debt. I don't feel the need to own anything outright.
I just want the rising capital value and the rising income streams. I let inflation take care of the property value.
My parents bout Sydney waterfront in the 70's. If they never paid down their loan they would owe $40K on a property worth in excess of $2M . Do you think never "owning" that property would worry them??
This concept of having to pay off a property is a mental block that all newcomers to investing must tackle.
Cheers,
What's it worth to you? That is more important!
I have found NAB to be the best lender as far as high valuations go – perhaps it is more my mortgage contact than a mainstream policy!
If you are with CBA then don't plan on refinancing fast. Those guys drive me nuts sometimes. When you are ready to do something give Richard a call – he will look after you very well.
xcoll isn't the worst thing in the world. Fix it when you can but don't lose too much sleep over it at this early stage of your investing career. Maybe wait until you buy IP3 and get him to fix it all then – but give him plenty of warning – maybe about when you start thinking seriously about looking. He wont thank me if you call him 4 weeks out to unravel it all!!!
Cheers
Knock on the door. If the owner doesn't live there then the tenant will probably have some contact details. Or the neighbours as Hutch mentioned. I have always found neighbours to be valuable sources of info and generally they love a chat.
Don't go near any real estate agent. If they get a whiff that there might be a possible sale in the wind they will be in there trying to convince the owner that they can get him a better deal on the open market.
You are more up to date than I
Based on having a secure income and a deposit you should be able to get a loan – how much will depend on a few factors.
Contact a reputable broker and after you have answered a few questions he will be able to give you an idea of how much you can borrow.
Must be a pretty nice property for $700pw!
Cheers,
t803815 wrote:Depro also appear to offer a better guarantee than Depreciator (i.e. if the depreciation entitlements don't amount to at least double their professional fees in the first full financial year, they will refund the fee charged and provide the report for FREE).
I think that sounds the same.
Well based on that I reckon your choice is obvious.
All things being equal I would choose the cheaper option. Whilst a data collector is just an ordinary fellow as the long the report is signed off by a QS you should have no problems.
Well done
I hope that they give you as good a report – I expect they will but not all QS firms are up on the latest and I have heard bad stories about Accountant generated reports!
Are Depro going to visit the property or do a report based on your info? If it is the latter then I suspect even their quote is excessive.
I am guessing that Depreciator's fee of $990 includes travel expenses for their closest expert to visit the property. If they do the report based on your info it is much cheaper.
If Depro are doing it based on your info, and not an actual inspection, then call Depreciator back and ask them what they charge for the same report. From memory it was less than half of Depro's quote but as I can't recall the exact figure I wont suggest one.
It may seem like I am trying to drum up business for them but I am not. I have seen them to be very competitive on pricing in the past and this discrepancy puzzles me.
Cheers,
http://www.depreciator.com.au are the company that I use and refer people to. Have had positive feedback from all the investors I have directed to this team of Quantity Surveyors.
They have a deal whereby if you don't get double the cost back from the ATO in year one then the report is free to keep and use over the next 20 years.
Terrific service and they cover the whole of the country. If the property is remote then they can work with the owner via photos and email to get a report done.
It is worth having a chat with them as they will happily discuss the property and tell you if a report is worth doing or not which I gather is what you are interested in.
Scott, the business owner, was on Today Tonight last week and you can even catch a glimpse of me in the clip as they filmed at one of my IPs. Was a fun afternoon and quite interesting to see how these stories are put together.
http://au.todaytonight.yahoo.com/article/40021/money/claiming-depreciation-properties
Cheers,
This theory is called the snowball theory and it was in todays SMH money section. As you kill the smallest debt you have more to put towards the second smallest and so on.
it gives an early feeling of success and hence a psychological advantage. Useless if you don't cut up the credit cards.
Many experts suggest killing the highest interest debt first – this is valid too but I prefer the Snowball method.
Once you have everything under control and have repaid the debt that put the default on your CRA you should write to that company and respectfully request them to remove the default. They don't have to but often some will.
Otherwise you can just wait for it to expire. Even after a few years some lenders will overlook it if it is old and not for a large amount. Few LMI providers will so make sure you have a 20% deposit.
Well worth buying today's SMH as there is a great CRA article in it too.
Read it here:
http://www.smh.com.au/news/banking/big-brother-eyes-credit/2007/07/16/1184559700312.html
Lighten up folks. Let's think twice before we label others or get all sensitive over some stranger's opinion. Perhaps we need to keep our opinions to ourselves and direct our discussions to investing.
If this thread doesn't become useful in the next few days it will be deleted. From what I have read so far it seems like a waste of server space.
Barney, you know the theory – how can we help you get the ball rolling?
Cheers,
Have a read of this article and then post any questions or ideas you have here and I will discuss them with you.
Cheers,
Tatts_83 wrote:Just curious, do any banks/lenders offer IO loans that come with an offset account?Tatts
Probably nearly all of them do.
I have heard that within Docklands there are better and worse buildings. Research well and you may find a good IP there.
Make sure you read your contract very well. Ensure you are well aware of any penalties imposed by the lender if you should pay out the loan at any stage,
The rate is reasonable but check the fees.
Cheers,
