Forum Replies Created
Dear Shane,
We cannot offer a solution to your problem as we are in practically the same situation. We too want to concentrate on +ve geared properties but have three -ve geared – but on serviceability we are about maxed out.
Kiwi mentioned negative geared rescue solution -what does this mean?
I have jsut been reading a book by Wakelin – ‘Streets Ahead’ where they believe the answer is in purchasing property with high capital growth, and hanging on for the long term.I can see the sense of hanging on to what we already own which are all in high capital growth areas.
So we are at the point where I can see possibly a combination of both ideas possibly working but we need to now get the funding to commence purchasing +ve geared or +ve cash flow as Margaret Lomas says in her book.
So Shane, we are like you – looking for a solution.
Looking forward to other ideas from other members.
Peter G
Dear Weston,
I would be very interested to know how you are able to keep borrowing to buy investment properties without a job.
We have a few negatively geared IPs but have reached a point where we cannot buy more due to serviceability. I to wish to resign and concentrate on investing so how do you do it.
PeterG
Dear Terry,
I have just been looking into the advantages of a family trusts or other type of trusts for property investment. Is this the sort you utilise and how do they work or operate to ones advantage.
I have heard that it is better to have a company set up as the trustee with yourself as the director. This all seems very complicated. Who do you see to set this up?
Looking forward to your reply,
PeterG
Iforgot to give you my email address for the spreadsheet. Its been a long day.
email : [email protected]Thanks PeterG
I would love a copy too
Thanks PeterG
Dear Mel,
Thanks for your ideas. I will have to find out more about trusts. I have been reading about them in other areas of the forum.
My accountant advised us to stay as individuals as there were better tax advantages and less paper work as compared to either a trust or company structure.
After reading many books from Steves to Jan Somers etc where there are many different ideas it is sometimes difficult to know which way to go.
Peter G
Thanks Mel
from Peter G
Hi Everyone,
I have just been reading all the interesting information on this forum.
I am fairly new to this but am in need of some advice.
Our situation is as follows.
We own our own home and owned a coastal acreage.
We started seriously investing in property 3 years ago where we purchased 2 negatively geared houses in popular areas of coastal NSW. Both have showed good capital growth and have doubled in price over the time.
Since then we have sold our acreage and purchased two blocks of land at Hervey Bay which also a shown good capital growth. We own both of these.
Later this year we have purchased another rental house in Qld and 3 more blocks of land for low prices which we intend to build rental houses that should we hope prove to be positively geared.
We decided to do this after reading Steves Book.
To purchase these additional properties we needed to borrow on the equity in the increased prices of our negatively geared properties.To finance the cost of building a couple of houses on the new blocks of land we have applied for a line of credit to fund these.
Now our major problem, which is becoming the family argument, is how to reduce the debt once the houses are built. ( Getting a builder at the moment is the hard part. So we thought of owner building, which we have done in the past.)
My partner wishes to sell our family home to pay outright for the two new rental properties so we will own them outright and also to reduce his work load. This was inspired by Steves Book. Thanks Steve.
But I love our family home and wish to keep it.
Hoping someone can offer a solution as to how we can keep the family home but reduce our debt. If we sell a property we end up paying most of it in CGT.
Overall, what we are trying to achieve is about 10 positively geared properties, including the family home, from which we can derive an income from in retirement.
I am still a bit confused about the concept of refinancing but have posted a message in a separate forum listing which I hope can help in that area.
Looking forward to hearing some ideas.
Peter GFrom a first timer on this forum.
I too am a bit confused about refinancing. When you refinance through the same bank do they give you in cash, the difference between the 80% of the new valuation and the amount of the existing loan owed?
For example we purchased a property nearly 3 years ago for $140,000 which is now valued at over $250,000, how do we go about reducing our debt but still keep the property.
Is it possible to then reinvest that cash back into the loan to lower your debt and repayments, rather than using it as a deposit for another IP. At the moment our 2 IPs are, after about nearly 3 years fixed, nearly neutrally geared. We wish to get them positively geared.
Peter G
