Forum Replies Created
You may need to think about buying cheaper
Thanks for your reply, Terry!
PropertyAllSorts
Doesn’t matter what type of property – as long as the figures stack up!!Docklands is in a league of its own, and is inappropriate to compare to suburbs like St Kilda, Port Melbourne, South Melb etc. Docklands precinct facilities are world class – and is unfair to be de-valued by comparing such facilities to cheaper local level facilities. As to the current over supply of properties in the Docklands – I say Yippee! Great time to buy (when nobody else wants to) By the time everybody wants a piece of it, the prices will be too high for most of us to afford.
In every market condition – downturn / upturn whatever – there are opportunities for all of us. Change our strategies to most the most of the current situation.PropertyAllSorts
Doesn’t matter what type of property – as long as the figures stack up!!Using equity will cost you interest. & since your income is limited & expense is high, have you considered selling your home & purchasing a cheaper place to live? This will convert your equity to cash you can use to invest, without interest charges
..just my 2 pence worth..
PropertyAllSorts
Doesn’t matter what type of property – as long as the figures stack up!!Henry Kaye in disguise? didn’t think the post would sound like anyone in particular.
I have answered Terry’s concern – there’s a solution to the problem
There is a solution to this.
Hi David & Lesleigh,
I am a mortgage broker with Mortgage Choice, so I thought I’d let you know beforehand.
Advantages of using a mortgage broker is that it leverages your time – rather than you having to find out each lender’s pros & cons yourself, a mortgage broker can do all that for you in much shorter time. Much like a one stop shop! Also, using a mortgage broker is having an industry professional work for you for free, and they are usually more accessible than bank employees. For example, some mortgage brokers are accessible on weekends, & after hours.
Just be careful which mortgage broker you use, as some may be biased and steer you towards products where they earn higher commission, rather than products that are truly beneficial for you.
It is ok to ask the broker what he/she will be paid for doing your loan with particular lenders.Hope this info helps
Ching
[email protected]The ATO gives small businesses (inc trusts, but not companies) CGT concessions in the form of a discount & CGT rollover portion. The asset that is claiming CGT discount & rollover portion must have been owned for more than 12 months, and certain conditions have to be met.
In terms of property investing, some people live in their investment property (ie- call it their principle place of residence) for at least 12months before selling it for a profit & claiming CGT exemption.
That’s all I know, but hope it helps.
Hi Ryanmel,
I’d agree with Terry & say that the line of credit is the most popular way of getting a loan “for investment purpose”, but you cannot tell the bank it’s for business.
I once secured a business loan for a Bakers Delight (franchise bakery) store. It was standard home loan rate + a margin, somthing like 9.5% in 2002. The term was 5 years, max. the lender would consider was 65% LVR. No property security involved, just secured against ” business assets” – ie- equipment, business etc.
Generally, if you want a business loan, you’d be dealing with the commercial branch of the bank, & they’d ask you for very detailed information & proof regarding the business income, profits & taxation returns.
hope this helps[^]
Hi Redwing,
Like many of us, I’ve read the richdads, lomas, burleys, good old mcknight , Fitzgerald etc. I’d place Lomas’ advice after McKnight, Burley & Richdad. Her advice seems more appropriate for less aggressive investors than ourselves, probably better for people who are a bit chicken to find their own profitable investments and take the leap. As for using depreciation to get +ve cashflow, I’d place it at 2nd preference to getting +ve cashflow from rental alone. Depreciation just isn’t the same (or as good) as cashflow.
Hi Beerboy, The Richdad series of info suggested some of the following: occasional movie tickets, early/punctual rental payment discount as opposed to late payment penalty, instal bathroom heater (or other things) to justify small rental increase, use what you have access to at discount prices e.g if you know a car detailer, maybe you can strike up a deal for your tenants with the detailer etc
My accountant says that CGT on property is not payable if you lived in it for at least one year (ie- owner occupied, not classified as investment). If a business selling up, then full CGT is payable if selling in 1st year of business, but only half of the CGT is payable after 1st year of business, if you use the rollover portion ot reinvest in another business. Hope it makes sense. If not reinvesting in another business, then full CGT is still payable if seeling up your business after 1st year.
