Forum Replies Created
No worries. Hope the sale works out for you.
All the best,
NathanDomain.com.au should show you what you are looking for. I haven't used it for a while but I think you just click on the 'reports' tab.
Cheers,
NathanHi Joe,
Gross rental yield can be calculated from the following;
Annual Rent/Purchase Price x 100
So; (290X52)= $15 080 / $220 000 x 100
= 6.85% Yield
This is gross yield and doesn't take into account fees maintenance etc.
Hope this helps,
Nathan
Wealth is the transfer of money from the impatient to the patient – Warren Buffet
Kimberly wrote:How about paying it down as much as possible now…..
……but not close the account.And when it's time to move to the new PPOR, remortgage this IP (the first PPOR) with interest only payments.
Does that make sense?Kimberly,
Interest deductability is based on what the borrowings are used for, not on where they come from. In this case when you redraw your loan that is classed as a new loan and you are USING it to buy a PPOR. So even though the loan is on the IP it was not used to buy that IP. Thats why if you keep it in an offset account you are free to do what you want with it as you are not redrawing any loan.
Cheers,
Nathanbrmiau wrote:Thanks again for all the info. Have done some calculations with a compounding interest calculator online and it seems thats the way where going to go. Pay off the mortgage by 34, continue to pay $1000 a week into a compounding interest account. By the time we're 55 we'll have $2,200,000 in the bank earning approx $110,000 a year off that. Or I could work another 5 years, retire at 60 with $3,000,000 in the bank earning $150,000 off that. Or retire at 50 with $1,100,000 in the bank earning $50,000 a year off that. Retiring at 50 sounds best, but probably 55 is more likely. Any one have any thoughts on that?Hi Brmiau
Have you taken into account the tax you will have to pay on your interest? Also $100 000 wont really be alot of money in 20+ years time after inflation. If you look at what things were worth 20 years ago it all looks cheap as chips but it would've been alot of money to them back then.
Cheers,
NathanIf you buy or create a CF+ house then you could pay your loan off in less then 7 years AND have an investment property!
As Warren Buffet once said… "Be greedy when others are fearful, and fearful when others are greedy"
And in my opinion the majority seems pretty fearful to me! I reckon there are some excellent bargains out there, even if prices do drop a little more.
Hi Lizzie,
What is making you go for a 2 bedroom appartment in Townsville?
Just I have been researching Townsville for a good few Months now and for that same price you can pick up a 4 bed 2 bath house in a nice suburb. Minus the body corporate fees.
Cheers,
NathanMy apologies S&P. I obviously jumped the gun on that one.
All the best with your property hunting and look forward to seeing you around the forums
Cheers,
Nathan
First time poster praising the company on a thread filled with negative comments!? This must be a first.
Not to mention the convenient links to the property which is apparently 'too good to be true' and 'almost completely sold'!
Haha this company must be dodgy to have to go to lengths like this.
Hi Sunni1
Once you have found an area you want to invest in I would shoot Jamie an email ([email protected]) and he can structure your finance correctly from the start. Brokers are generally a free service so you are mad not to use one!
I just wish someone told me that before I went straight to the bank for my first IP! Now my loans are crossed as i was young and dumb and believed the bank manager had my best interests at heart (haha!) Am now going through the process of uncrossing before I can buy my second IP! Lesson learnt I guess!
Goodluck with it all,
Nathan
Have a look at Townsville, Queensland, It has been in most of the Property magazines lately as a 'muscle' town benifiting from the mining boom. The queensland premier also said they would be turning it into Queenslands Second capital city to ease pressure off the Southeast corner (Brisbane etc.)
Not alot of houses under 300k but there are enough that are worth a look. Thats if your even considering investing in a different state.
Nathan
Hi T&D
Here's a link to a previous thread about NRAS:
https://www.propertyinvesting.com/forums/getting-technical/finance/4337285If you "search" NRAS under the Forum tab at the top of the screen you will find some others where people have talked about NRA
My understanding of it is in order to receive the $9-10K bonus you have to have your property rented out at atleast 20% below market rent, to low-middle income earners who meet the criteria.
Cheers,
Nathan
Hi Ash
I am good thanks. haha glad to hear about your mum and glad I could help.
I wish I knew this before I bought my PPOR but I guess it is all a gradual learning curve and will now know for the future!As for your question I am not 100% sure but my understanding is that come the end of the interest only period you can choose to re extend it for another 7 or so years and then again after that and so on. I could be wrong. I am only pretty new to the whole property investing thing myself. Judging by the 88 in your name I am assuming we are the same age.
There are quite a few very experienced guys on this thread so hopefully they can answer your question in regards to that.
I am quite interested to know myself.Cheers,
Nathan
Hi Ash,
Abit of an example…
P&I Loan: 300k for your your current PPOR. After 2 years you have paid 50k of the principal so your current loan is 250k, and you will be charged interest on this amount. Say now you decide you want a bigger better house and want to rent out the current one, you withdraw your 50k in equity to use as your deposit on your new PPOR. Your original loan is now back to 300k however the interest on this is not tax deductible because you have withdrawn the money for personal use. You now have alot of non tax deductible debt with your original loan and your loan for your new PPOR.
IO Loan: 300K for your current PPOR. Your repayments for this will be lower however if you are disciplined and pay what you would be paying for a P&I and put the extra into an offset account then as above you would have 50K in your offset account after say 2 years. Your loan amount is still 300k but you have 50k in an offset so you are only being charged interest on 250k. Exactly the same as P&I scenario. However now when you decide to upgrade or move PPOR you can withdraw that 50k from your offset and use it as a deposit on your new place and because it was just money sitting in an account you aren't actually redrawing from the original loan unlike in the above scenario. Now when you rent your old place out that full 300k will be tax deductible! Which means more money in your pocket come tax time!
This is a very simple example but hopefully will allow you to get your head around it.
Hope it helps,
Nathan
Ash88 wrote:But what I want to do is buy a small unit a 2bdr around 250k, with 100k deposit and take 30 year loan , and leave the remaining in a offset account and use it later as I want to buy land in the new estate that will be released in 2014 in Maribyrnong and build my PPOR there and put the first property on rent .Hi Ash88,
In regards to the above, if that is what you are set on doing you are better off only using the least amount possible as a deposit instead of 100K. Approx 50K if you want to avoid LMI. Have an IO loan and have the rest of your money in the offset account. This way when you go to buy your PPOR you can move all your money out of the offset account and into the new loan as this wouldn't be tax deductible. When you rent out your first house the interest you will be charged on this will now be deductible. (200K loan assuming the 50K or less deposit)
Good luck with it all.
Cheers,
NathanThanks for the replies guys. Still seems to be a mixed response though which is what I keep getting. I was hoping a lawyer or someone that has qualified for it or at least tried may be able to shed some light on it.
Cheers,
Nathan
redcake wrote:Hello, I am just starting out on my investment journey and have signed up for Steve's training package (course). It's been said to prepare for the worst and hope for the best, so I am wondering if anyone can tell me what is likely to happen to interest rates if there was a depression? will they go up, or will they come down?
Thanks
RedcakeHi Redcake,
Usually if things start getting bad they will drop the interest rates to try and stimulate the economy, like what happened around the GFC. When things start getting better they will raise them little bit at a time, this also gives them room to move if things do turn around for the worst.
This is put very simply, there are alot of other factors they take into account when raising/lowering rates.
Cheers,
Nathan
Thanks heaps for that Josh! Has definitely answered a few of the questions I had about the area.
