Hi Terry,

Thanks for your reply.

Yes obviously your interest repayments would increase when money is taken out of the offset but the whole amount would not be used, just what is needed to do a deal. Once some money has been made off that deal it would be put back in the offset.

The whole point of property for me is to make chunks of cash, I’m…[Read more]

Sorry Terry I don’t think I follow. Could you please explain further?

I thought keeping the cash in an offset tied to your PPR would be most beneficial as this interest is not tax deductible?

Cheers
Rod

Sorry Terry I don’t think I follow. Could you please explain further?

I thought keeping the cash in an offset tied you your PPR would be most beneficial as this interest is not tax deductible?

Cheers
Rod

Hi,

I would buy my PPR with as high an LVR as possible and then sit all my cash in an offset to reduce interest.

From there I would use the cash to manufacture growth in other deals which I would sell.

Eventually your PPR is owned outright and you would have enough spare cash for further investments/ deals to keep moving forward.

This is…[Read more]

Housing affordability ??? Didn’t know there was a problem!!

Oh wait … Sorry I don’t live and invest in Sydney or Melbourne. As far as I’m concerned if they have a problem it’s for them and the local government to sort out… Or inevitably the market itself.

SELL SELL SELL!!!

Although would be good to know more about your personal situation eg. Serviceability to buy more property, equity position, goals in Proprty etc…

But based off those numbers, me personally, I would sell.

There is an opportunity cost of holding something that’s not performing and the potential to buy something else that will…[Read more]

Hi Jalugera,

Yes the extra costs associated with purchasing here in Aus do make it a little harder to Reno for profit.

I do this only in Qld as the costs are a fair bit less than other states. I have found on top of stamp duty that other costs including conveyancing are around $1000.

My profit margin is 10-20% of purchase price after all…[Read more]

Hi Bjoern,

I think your over thinking/complicating the idea of an offset account…

The way I see it is interest for bank deposits is a lot lower than the interest we pay on an average home loan.

Where would you rather put your spare cash to work for you ?

Would you rather be “earning” interest on a low interest rate or “saving” interest on…[Read more]

Hi Bjoern,

I think your over thinking/complicating the idea of an offset account…

The way I see it is interest for bank deposits is a lot lower than the interest we pay on an average home loan.

Where would you rather put your spare cash to work for you ?

Would you rather be “earning” interest on a low interest rate or “saving” interest on…[Read more]

Hi Gowide,

I actually haven’t taken any courses on this and just built to the point I’m at now through experience. You know what they say, learn from mistakes and don’t see mistakes as failing, use them to move forward, although may have been a bit faster to learn from others mistakes.

Yes my first Reno sounded very similar, increased the rent…[Read more]

I think the best way to crunch the numbers is 10% profit on the higher valued properties, 400k and up, and 20% under 400k. That’s how I would look at it anyway.

…And for your 10mill property just use the 1% rule. Haha

Mainly regional at the moment but have invested in capital cities previously.

I just don’t like competition when Im making offers, they start to become irrational offers if too many people are looking to purchase. I’m finding that any profit in the cap cities you mentioned would be more cap growth based than actually off the back of a Reno……[Read more]

I Reno full time and as a basic rule I have a minimum nett profit of 10% of the purchase price. I use the 10% minimum as a basis to work off when doing initial numbers on a property but in most cases my profit is 20% or more.

Eg if I purchased a property for 200k I would expect a minimum nett profit of 20k before I even considered putting an…[Read more]