Forum Replies Created
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!”
[
]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 purposes.
However, if you sell (leaving you with roughly 305k cash, I’ll ignore costs) – how much would it cost you to rebuild? Already you’ve said the land is about 135k, so that leaves you with 170k to build a house. That’s not much – is it enough to build a house for you?
This brings me back to my first question. If the reason for selling is cause of strain on your finances, I don’t think it’s wise to get MORE loans that might be unservicable for you too.
So while selling doesn’t seem the best, it might be the best option.
Man – I hope that makes sense cause I kinda forgot what I was trying to say… LoL. Sorry. [
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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 in all, I’m pretty happy with it as it offers amazing flexibility. Still, seems to compare with what ANZ offers you maggie so it would appear my ‘special’ deal is the norm… lol! [
]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 agreed. So looks like no tenant. The agent also said vacany was a problem but that it was on the ‘good’ side of town – who knows how true that is… lol.
Cash on cash returns though look pretty good however as I can access 20k already (LOC) – whether I’d want to buy without tenant is another question.
Ah well, I’d say maybe it’s not a good buy afterall… [
]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? [
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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… [
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