Forum Replies Created
Where did you get those valuations from?
Do you expect the values to drop further? If not then perhaps spending another $10K to sell it plus another $10K to replace it might not be a wise move.
Would you buy it again at todays price? The answer to that might help you decide whether to sell.
All the best,
Simon Macks
Finance Broker
[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 is the size of the apartment?
The issue is getting it past the Mortgage Insurers who aren’t at all keen on <50sqm dwellings.
It is true that many people believe studio apartments to underperform however I cannot find any data to support this.
Perhaps you need to seek the anectdotal evidence from people in the real estate industry?
Cheers,
Simon Macks
Finance Broker
[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.
Having your PPOR in a trust or company is a much more sophisticated approach and there are ramifications such as loss of CGT exemption.
Make sure you get very sound advice before tackling this step. I don’t mean to be negative – just counselling being informed.
Cheers,
Simon Macks
Finance Broker
[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.
If you have any non deductible debt then I would suggest IO with all principal payments directed to that non deductible debt – the classic is the PPOR loan.
Remember that only the interest component is tax deductible.
If you wish to buy more property then IO so that your money can spread further.
Remember with IO you can make principal payments if you wish.
I am not a big fan of fixing. In most cases the borrower ends up paying more but there are winners – I am still paying 5.86% on the only loan I have ever fixed.
I am sorry I cannot give too much more advice without knowing your situation further.
Cheers,
Simon Macks
Finance Broker
[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.
Originally posted by Mobile Mortgage:Apologies Simon I dint see your post, I was about to submit my reply but was distracted by a phone call, Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Well it is pretty positive that we are both on the same track!!
No need to apologise mate.
Cheers Steve,
Simon Macks
Finance Broker
[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.
A third advisor might even suggest IO with an offset account [biggrin]
Without knowing more of your situation and goals it would be irresponsible to make any recommendations.
All the best,
Simon Macks
Finance Broker
[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.
Originally posted by nkibel:The only thing you could do is invest in New Zealand where you will recieve positive cashflow and growth.
Nigel Kibel
The only thing Nigel???
I would expect a little bit more flexibility in options from a professional such as yourself?
You wouldn’t happen to be involved in marketing NZ property would you?
I think Ben has a number of options open to him at this stage even including venturing OS and setting up a strategy that includes the complexities of owning and running IPs on both sides of the Tasman.
Cheers,
Simon Macks
Finance Broker
[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 points:
The xcoll isn’t the end of the world. I would leave it for now – at the very least dont lose sleepover it at this stage.
I would consider IO for all loans and have an offset on the PPOR for all cashflow and savings.
Do not use this offset for anything except undeductible debt – ie another PPOR, car etc.
If you decide to buy another IP then borrow the full cost plus purchase costs. Even xcoll it if you need to.
If you decide that your PPOR is your home forever then no need for the offset – just pay into that home loan and knock it over.
If you feel confident of getting another IP with some good potential for CG then by all means buy another one or more. The CG will make you more wealth than the amount you can pay down your PPOR – this is the beauty of leverage.
All the best
Simon Macks
Finance Broker
[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 sold a couple of Brisbane places when I was younger back in the late 80s and early 90s.
Of course hindsight tells me that the $100K sell price would be now $250K++.
Would have been easy to hold though.
Those lessons will strongly influence my future plans.
Cheers,
Simon Macks
Finance Broker
[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 sort of units are they in Cairns? Serviced or normal residential?
Well done
Simon Macks
Finance Broker
[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 have just been through this post and deleted everything which did not add value to the thread.
Colbert and his aliases have been blocked from posting.
Please advise me by email should he rear his head again.
All the best,
Simon Macks
Finance Broker
[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 have travelled much of South East Asia. My favourite is Laos and my wife loved Cambodia (She travelled through there on her own woth no troubles). We both enjoyed Hanoi and the North of Vietnam but not so keen on the south.
If I was to find a cheap friendly place for a few months then I would go back to Lake Toba in Sumatra. It is a few hours drive from the city of Medan (which you should stay in as short a time as possible – is not a nice place).
Email Hendricks at Samosa Resort and ask him for a good deal on a Lakeside room for a month.
There were a number of backpackers there who had run out of money but weren’t ready to go home. It really is a place where you can stay and eat restaurant quality meals for $20 a day (including beers). The staff and other guests are so friendly there.
It is located on the island of Samosir in the huge Lake Toba in Sumatra Indonesia. It is a christian area and is quite unlike other areas I have visited in Indonesia.
If I can help you at all please email.
Cheers,
Simon Macks
Finance Broker
[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.
Well I guess some of us should take on board a lesson about jumping to conclusions without verifying the truth.
Have a great weekend,
Simon Macks
Finance Broker
[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.
Nigel,
Have you been to Geraldton? I doubt you would call it a one horse town – is is a fairly large regional city, possibly one of the larger ones in WA outside of Perth.
Cheers,
Simon Macks
Finance Broker
[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.
http://www.hunterhousehunters.com.au
Ask for Mick and tell him Simon sent you
[biggrin]Cheers,
Simon Macks
Finance Broker
[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.
Of course you can.
However if you use it to purchase a new PPOR or any other personal expense then that portion of the loan will no longer be tax deductible.
If you pull money from an offset and use it for a PPOR or personal expense the original loan is unaffected and still tax deductible.
This can be a tricky concept to grasp. I am more than happy to explain it over the phone if it helps.
Have a super weekend.
Simon Macks
Finance Broker
[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 makes you think this is a democracy Rob?[biggrin]
Yo ureckon I would have this job if voting was allowed lol
Cheers,
Simon Macks
Finance Broker
[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 have never done this with a lender before.
One idea might be to take out a margin facility against the shares and use the funds released for a deposit.
This is a higher risk strategy and you best discuss it with your accountant.
Cheers,
Simon Macks
Finance Broker
[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.
All of those questions depend on your current loan. You should ask your lender or your broker for advice there.
If you have a redraw fee then an offset will save you this fee – but also make the money more accessible which some people find dangerous.
If you feel that you might ever make your PPOR into an IP I would strongly recommend you consider the offset.
Simon Macks
Finance Broker
[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.
Typically residential is where most people start. It is thought to be cheaper to enter with lower deposits and less risky.
$40K is a substantial deposit. Your limitation to buying a decent residential property will be your serviceability or income. It will also depend on the location. You will obviously get something very different in Sydney vs Perth for example.
Cheers,
Simon Macks
Finance Broker
[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.
