Forum Replies Created
I get hit with 11% on one of mine! Besides the fee though they do do a really good job.
Good to hear you got the place rented out! You should have asked the guru's on here months ago!
Personally I would save your money on the courses and buy the API renovators handbook for $30. And obviously you have the internet so everything you need to know is on there! I learnt how to plaster and lay carpet from youtube and mitre10/bunninings instructions. I put up new ceilings and floors in 3 bedrooms and you wouldn't even know it is a DIY job! You will be surprised how much info you can get for free!
Good luck with it!
Cheers,
Hey Scottsdale,
I have bought silver from Perth mint over a year ago and remember the gold was around $45k back then. Obviously haven't checked in a long time. Sounds like its doing better than my silver!
How much money are you talking? About $40K will buy you a kilo of Gold…
Yeah good tip cheers freckle! It has been performing nicely and looks like good news moving forward!
Thanks Richard,
A property I am currently looking at is vacant and needs some minor reno's however I am completely new to the whole early access thing. I think this would be ideal for this property! So really you are best not to gain access until it is unconditional? Or at least not commence work until it is unconditional I guess?
If you had commenced work and it fell through then you would be required to restore everything to the way it was or better?
Cheers,
Haha don't think I will ever get to that stage! I'm happy to leave that bit to the experts!!
Hi Mel,
I can't comment on the toowoomba market but I think long term Townsville is a winner. Then again I have a property in Burdell so I am probably a little bias! I just think it is all so cheap at the moment, and townsville has so many industries supporting it and seems to be constantly growing. I only purchased my property there early this year but it was tenanted straight away and hasn't been vacant since. They just signed up for a 1 year lease last month at an increased rent so I think if you buy right then you shouldn't ave any troubles with vacancies. Cant comment on the demand for 2/2's though. From my research the 3/1 or 4/2 were in most demand due to the large amount of families with children wanting to live there due to its real 'community' feel.
Hope this helps.
Cheers,
Hi Cha,
If you had interest only on your PPOR with an offset account than you would be able to avoid the situation you have found yourself in now (as discussed on another post), and you would be able to claim the full amount on your current PPOR when you move out and turn it into an IP, because you are not re-borrowing any money just shifting it from one bank account to another.
Hi Cha,
As above, try not to think about where the money is… think about what it is being used for. In the above example you are using the money to buy a new house to live in. Unfortunately if you get a loan to buy a PPOR this interest is not tax deductible as it is for personal not investment use. It is a bit more complicated than that but don't want to over confuse you.
Cheers,
I agree. Even though exploration of Uranium was never banned in QLD, only mining, I think this should lure a few more exploration companies out on the hunt, and hopefully discover other metals while they are at it!
No Worries cha,
Depends on what you plan to do with your new home in the future. If you think you may one day rent it out then yes an interest only loan with an offset account would be best.
If you had that set up on your current property then you could now move all your money out of your offset and into your new property offset account and would then be able to claim the total loan amount on your original property.
But yeah do some research and ask plenty of questions and you will learn pretty quick.
Hope it all works out for you!
Cheers,
Hi Cha,
Dont be sorry! Not that long ago I was in your position trying to get my head around all this information out there. That's where this forum is great I think!
I'm not really sure what you mean in your first scenario as if you use the money for personal use how can I then still have it to use as a deposit?
as for your second scenario, the new loan is still not being used for an investment so no you wouldn't be able to claim the interest.
For the best tax position you should sell your current property. Buy a new house with an interest only loan with an offset account, put all funds from the sale of your house into your offset account which is effectively like paying down the loan but helps to avoid the situation you are in now. Then buy a new investment property borrowing all money with an interest only loan.
You should speak to a good mortgage broker and they will help you set it all up and their services are nearly always free! Invaluable I reckon!
cheers,
Basically redrawing money is considered new borrowings. It is irrelevant where it comes from.. if you use these newly borrowed funds for anything of personal use (PPOR, Car, holiday etc.) than you would not be able to claim the tax benefits.
If you use these new borrowings for an investment purpose eg. another rental property, than you would be able to claim the tax deductions from the interest payments!
Hope that clears it up a little for you?
Cheers,
Cha,
7-8 years is just a guide and shouldn't really be held as law. The last property boom was roughly between 2005-2008. This was when everyone seemed to be making a mint from property. Unfortunately if your property didn't move much during that time then I wouldn't be holding onto it. I don't think anyone is expecting to see that sort of growth ever again or at least for a very long time!
Hi Cha,
PPOR is Principle Place Of Residence. Or in simple terms your primary house or where you live.
Yes if you have paid off $200K then you have every right to withdraw that money and use it as a deposit.
Yes your investment property loan will then go to $260k but you will not be able to claim this! Do not think about where the money comes from just think about it's use. You are using the money as a deposit on your new house so it cannot be claimed. That is why if you intend on eventually turning your house into an investment property it is best to set it up correctly from the start with an IO loan and an offset account.
This is why I think option 2 would be a better idea.
Cheers,
Hi Cha,
I'm sure one of the experts will respond soon but personally I would go with option 2. If you are withdrawing the deposit for your PPOR out of the Investment loan then this amount will not be tax deductible, and you would end up not being able to claim a large amount of your overall interest repayments.
If you sell and use the funds to minimize your PPOR debt on your new house then you can structure everything correctly from the start to maximize your tax position.
I am surprised you havn't seen any growth since 2001! That is a severely underperforming property and I wouldn't hold onto it 'just in case'
Cheers,
In regard to insurances etc. I always thought that once you sign the contract to buy it you are then liable to insure it etc?
For a portfolio that is mostly based in mining towns why is your yield so low!?? Doesn't sound enticing at all sorry!
I looked into them a while ago but found that apart from the high fees, the price of the property is at a high premium. I ended up buying the same type of house for nearly 50K less. As long as you due your homework you shouldn't have any issues with vacancies. I think they are a great idea for people who are after hassle free property investing and are willing to pay a bit extra but that just isn't me at this stage anyway. All depends what you are after really?.. From your comment above about the spare cash I think you should do your homework and buy one on your own to help save those extra dollars!
