Wow thanx Oscar that is so cool!!

At last someone has said what Ive been thinking for ages!!

Geez if ppl are worried about interest rates to such an extent then maybe they’ve overcommitted themselves financially!!

I think you ahve to allow for incrases when you first crunch the numbers and if you dont your crazy!!

Pepper

Geez Louise Yorker, do you really look at that many first? Good for you!!

Gotta say though thats a lot of properties and must take you ages!!

Pepper

Hey Yack just went back in and deleted my thread seeing no one responded so far anyways.

Heres the what I said in mine:

The dictionary says velocity means speed, but if so many of you investors here believe in B&H how do you interpret this speed??

I’m assuming it was explained in the seminar which unfortunately was sold out before I could get a ticket, but it is funny that this term is getting bandied around a bit in here and I have to wonder if people really understand it fully.

Pepper

Geez Louise Kay, you that old?? hehehe Nah really whats the diff?? X, Y your only as old as you feel right??…Ahh dozen matta!! [biggrin]

I agree free stuff works for a 1500 dollar fridge or DVD player, but not so sure it’ll offload the 200k unit!! If you make it a 2-for-1 deal I might reconsider!! [biggrin] Oh well guess no harm in tryin!!

Will keep fingers crossed for you Leigh!! [biggrin]

Pepper

Id say if you purchased another IP the contract document outlining the price would be evidence enough as would be the paperwork from your solicitior with the breakdown of settlement costs ie. stamp duty, legals etc!!

Pepper

Hmm..so what your telling me Bennido is that in effect that LOC actually stands for Load Of Crock!! [lmao]

Sounds really crazyto me, why would anyone pay a higher interest rate for the prevlidge of flexibility that really they aren’t able to have?? Coz if they try to they get penalized??

And what about the “double dipping” isnt that going cause problems if there is an audit done??

Pepper

So Bennido your loan is not a LOC is that right??

And I guess anyone who has a LOC this ruling applies to them to??

Sorry if I keep asking silly questions, but it seem strange to me. Why bother with LOCs if you cant access the money as you see fit?? [blink]

Pepper

Hi everyone,

Thanks for bringing this topic up, it makes for good info reading.

I remember seeing Paul Clitharoe (not sure thats spelt right) but I always heard him say that LOCs were ideal coz you had access to money when you needed it for IP purchases and that if you dumped all your money (wages, salary, rental etc) into it (to reduce tax) and live off your credit card, paying it off before interest free period was up, it was a good way of saving $$$. But now I’m reading from you guys, this is not the right way according to the ATO??

What do you mean Julia about having an offset account (savings or cheque account)?? I mean whats the point of having a LOC if the money you put in cant be redrawn?? If that were the case wouldnt you be better of with a P&I home loan or some such setup (and at lower interest rate)?? So on a 100K LOC you’re saying what, 80K LOC for IP purchases and expenses and 20K LOC for personal stuff. What if for arguements sake you spend some of the 80K on repainting an IP which cost say 5K aren’t you in effect “double dipping” by (a) claiming interest paid on 80K (not on 75K less the paint) and (b) 5K for repainting IP – hence two claims??

Seems really complex to me!! [blink] Seems like this splitting of loans is the ATOs way of splitting hairs!! [confused2]

Pepper

Hi Hector,

I have to agree with Aceyducey on this one. Students are not necessarily like most renters but with less money at all, in fact many of them probably have more money than you and me put together and are only over here in this country to get the degree which they would otherwise wouldnt have gotten back in their home country!!!

International student fees are substantially higher than aussie students and as such many of these overseas students are not hard up for a quid!!! True they will do whatever they can to save money and many of them are happy to live out of a single room in a house full of other students and will do so for many reasons, including proximity to uni as many may not drive. So at least you dont need to provide car spaces.

Pepper

Hi everyone,

I always thought you HAD TO vote wether you wanted to or not!!!! Which isn’t real democratic but guess thats just the way things are. And if you dont vote you have to pay some kind of penality!!!!!

Pepper