IT industry. Been support, system admin, network admin, etc currently working as a software developer.

Phil & Amity: 655k
Gav & Wazza: 680k
The Cruisers: 747k
Adam & Fiona: 751k

quote:
A good way to do it is rent it out for 12 months then do the reno then sell and claim the 50% Tax free.

westan

Fantastic idea man – I’d never thought of that. Providing that the renovation costs don’t increase too much over 12 months (which they shouldn’t)… []

Of course the PPoR idea is great too – if you like the ‘renovation / PPoR’ game.

Damn! I knew I was aiming too high when I looked at houses instead of caravans… hehehe []

/me impersonates Golem

“Wes’ hates that song!”

[]

Pert: If your current mortgate is a strain, then I’d definitely say to sell up and rebuild – providing you come out ahead if you take that course.

Good luck mate!

MJKMJK: Thanks mate – I had a feeling thats the way it is. Bummer. LoL.

Ah well, come selling time I guess I’ll be happy.

I got a question pert: Is your current loan 145k placing a strain on your finances (ie hard to service)? I think that is the crux for determing if you should sell or refinance to invest (though I could be wrong).

Atm you say you have around 305k equity (450 property – 145 mortgage). At 80% LVR you could borrow 244k to be used for investing…[Read more]

quote:

quote:
That’s alright, $44,200 in rent and $30-$33,000 IO repayments, leaves $14-$16,000pa for everything, including principle repayments.

These number just don’t add up? Ok 44,200 in rent which is $850*52 is correct. Where did you get 30-33,000 in IO payments? the property is 640,000 less deposit of lets say 20% = 512,000. At a…

[Read more]

Yes, my accountant told me that too. In fact he said that you should only claim depreciation when your tax return needs it (ie to stop yourself forking out cash to the tax man). However in years where you are getting a return WITHOUT depreciation, do NOT claim depreciation.

Makes sense to me. Cause afterall, you are just deferring the tax with…[Read more]

quote:Yes, it can be race between how fast you can save and how fast the market is moving.

Yep, I think what Jazz & Michael have just said hit it on the head.

If the market moves faster than you can save – go for the loan now regardless of whether you need to pay LMI. But then, its up to you in the end whether you want to do that.

quote:
Is this in Tassie? Situation looks similar to other properties I’ve seen. If it is, I can let you know what RE agents have told me.

No, not in Tassie. I’ve been checking Tasmania but been finding it hard to find +ve properities… []

Westpac offers a similiar package, ‘Professional Package’ which I have. I think it’s based on income (60k+ single, 100k+ couple).

Details: $300 per year, -0.6% loans > 250k, -0.7% loans > 350k (I think), 2 gold credit cards, no yearly/establishment fees on any loans (not sure if there is a max), linked in with a 100% offset account, LOC etc.

All…[Read more]

Well, I rang up about the property and here’s the info I got:

3br fibro, carport, A/C, lounge, kitchen etc.

Cost: 20k

Rent: 75pw
Mgt fee @ 9%: 6.75pw
Rates/water: 13.50pw
Insurance: 4pw
Morgage P&I @ 5.97%: 32.10

= +18.65pw.

However, on talking to the agent he said that the current tenant is looking to break the lease and that the vendor had…[Read more]

From what I know, it’s best to keep your properties under seperate morgages. ie each property has its own seperate loan.

This way you can correctly determine has much interest you paid on each property, how much monies you own on each property etc. Its easier to manage when it comes to tax time.

But then again, I could be wrong. Others thoughts? []

For my first house (PPOR) I had to get MI. Property was 118k, deposit was roughly 20k & loan was 104k. Something like that anyway.

On buying my second house (1st IP) I didn’t have to pay MI due to equity in my PPOR etc. So as the others have said, its easier to get loans without MI after your 1st property (providing you have some equity in your…[Read more]

quote:
olorin sledge – did the numbers stack – up??

I’m yet to call, will call today. Though I’m kinda scared… lol. I only have 1 IP and I didn’t exactly do much research when buying it (read -ve) so asking all these questions off Real Estate agents is abit daunting for me.

Bah – []

I agree with Di_Cam. I personally consider it morally and ethically wrong to turf a 94 yr old on the street – I don’t care if it’s “only business” or not.

My two cents worth… []

Thanks for the advise westan, appreciate it.

I’ll look at getting insurance/rates/water/mgt costs and check the numbers.

quote:price

20k

quote:Rent as is

$75 pw

quote:What can be doneto increase rent

Not sure – has A/C.

quote:How many vacant houses in the town

I do know that there are a number of properities in the town being sold, with most being around the 30k+ price range. Initial glances on rentals doesn’t show anything…

quote:If a minning town how many…

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