South of the border!

The Mortgage Adviser

GERALDTON, GERALDTON, GERALDTON!!!!!

Lots of properties under 100k and positive cashflow!!!

GERALDTON, GERALDTON, GERALDTON!!!!!

PS: I hold property in Geraldton and always talk up the area but I did buy there for a reason!

The Mortgage Adviser

I think the majority of stuff you are talking about are the old prostitute hotel style accommodation. They definately do no go up in value. You only need to step on one dirty needle and it is all over!

The Mortgage Adviser

I am not looking at direct property investments at the current time.

Regarding being a ‘strong’ negotiator, I think a ‘stubborn’ one would me more descriptive. I value a property that I am interested in through my own means and then firstly offer 10% less than this and move up very slowly. I will only go to my valuation amount if I obtain a long settlement of 6 months or more but never over my valuation amount.

I would only pay above my valuation for properties I consider crucial to achieving specific business goals but the vendor would never be made aware of these.

The Mortgage Adviser

It differs in every State. The information is available at…

http://www.fhog.info

Go take a look and ask any additional questions you may have after that.

Just so you know, a lot of the benefits may be gone before you become eligible as you are not yet 18. They may even be better. No-one really knows what the Federal or State Governments intend to do regarding FHOG and other concessions.

The Mortgage Adviser

All the info you need is available at…

http://www.fhog.info

If you read that ‘fact’ in API, it was an error. There has never been a requirement to live in the property for one year.

Previously, you had to move into the property within one year. There was no time restriction attached to this so people were moving in for one day and then renting out the property to take advantage of the FHOG (First Home Owner Grant).

Last year, the rules were changed and required occupation for 6 months starting within one year. What this means is that you can rent out the property for 364 days and then move in on the 365th day but have to stay there for 6 consecutive months to maintain your eligibility for the FHOG or you would have to pay it back.

You could also live in the property for the first 6 months and then rent it out without any problems.

PPOR is just Principal Place of Residence. It is merely where you live. It has nothing to do with the 6 month FHOG requirement. As outlined above, you have to live in a property for 6 consecutive months (every day) to be eligible.

The Mortgage Adviser

Many of us would Kiama.

The Mortgage Adviser

Hi Kieran,

Some simple loan structuring might help reduce the debt levels a lot. For example, put all your cash together into one offset account attached to your home loan. Include any work and rental income and set direct debits for interest only on all loans. Your interest expense will decrease quickly with your income levels.

Also, fill out the Form 1515 (I think that is the right one) through the ATO so your employers take less out of your wages in tax. This will also help you pay your non-deductible debt down quicker, further reduce the interest expense and further increase the cash flow to turn the situation around a lot quicker.

I would not touch a cafe unless you had a lot of experience. These go under very often and are a dime a dozen. You might be better served by looking for positive investments – be it property or otherwise (shares, LPTs ???) – which will ease any burden and not be labour intensive or increase your ongoing expenses.

The Mortgage Adviser

I don’t go to the trop. Can never get a seat outside and it is always too packed.

Don, I think you are dreaming if you think you could get studios in Potts Point for 60k or even in the 40’s back in the late 90’s. You would be lucky to get a serviced apartment or hotel refurb. for under 100k. I would like to hear from anyone who actually did this because I do not believe it was possible. The cheapest I saw at that time was just over 100k.

Also, properties I looked at in 2000 that were asking around the 150k (less than 25 sq.m.) mark are still at that price or slightly less now.

The Mortgage Adviser