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ryanmel
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@ryanmel
Join Date: 2003
Post Count: 30
January 2, 2004 - 1:38 pm
thanks for your comments.
steven, when i said borrow 100%, i meant using the equity as you mentioned, as a 20% deposit, and 80% lvr, but at the same time, by using equity, that 20% will still be borrowed money, therefore 100% financed for the property.
melbear, we have discussed moving, which has never been an issue for me, i have not emotional attachment to my home, just my bike. heheeh
i do understand the consequences of renting as you mentioned, but to me, i can live with this.
we already have a LOC which we have used effectively for the last 3 years now and we have less than 6 months to pay off our primary (non-income producing) debt.
we have a seperate account setup within our LOC for the investment properties, to keep the interest payments seperate from our everyday money (easier for tax). but by drawing down on a line of credit, in effect, wouldn’t we still be 100% borrowed (20% non deductible/80% investment)
as you can see i’m confused
s.i.s. – believe me, we are looking for +ve property, what i meant, sorry if i was a bit vague, was that by having to borrow 100% against the property (using equity), would narrow our options down.
anyway, thank you all for your ideas, and we realise that it is our decision to make, it’s an interesting one, to say the least.
our goal is to retire (from HAVING to work)at 30, so we have 4 years to create the cashflow we need to not be dependent on our jobs.
ryanmel
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@ryanmel
Join Date: 2003
Post Count: 30
December 22, 2003 - 2:53 pm
i have been using the PAYG withholding tax form or whatever you call it for a few years now. and if you have a monthly commission and no IP’s it also works, although i also have IP’s.
one thing i have noticed, but have been fortunate due to overtime etc. is that you need to allow for medicare. after filling out the forms, the ATO works out a percentage of tax that you pay per week/fortnight/whatever, but this does not allow for medicare. so if you were to work a perfect 38 or 40 hour week, you will end up with a tax bill at the end of fin year for the medicare levy. now, it’s not that we shouldn’t pay it, but, be prepared, no one likes a surprise bill.
ryanmel
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@ryanmel
Join Date: 2003
Post Count: 30
December 22, 2003 - 2:19 pm
i have read most of her books
they are good books, very easy to understand.
i have also had dealings with her company.
they are good for financial advice
they can organise finance for you.
they’re very good to talk to and everyone i have
dealt with in the last few years has been very
down to earth, and not opinionated or biased towards anything in particular, although the basis of their beliefs is on cashflow property, through depreciating assets.
which, IMHO, isn’t a bad thing.
ryanmel
Member
@ryanmel
Join Date: 2003
Post Count: 30
December 22, 2003 - 2:13 pm
regarding the comments made about robert kiyosaki….. whether it’s a true story or not, someone said “you should read this” and i did, and my wife did, and from paying extra off our house each month (not a bad thing) we were motivated to do more. and if from one book, someone can be motivated to read more, learn more, invest, and plan to retire on passive income rather than working for someone else for a livin, unhappy, then i think he has done a good job.
also, if someone can become successful from investing, and share their strategies with other people via books and seminars, then it is just another step in their wealth creation, no point being jealous. envious….maybe, or maybe we can prove to ourselves that we can become successful in our investing too, and whether in the future we have books or seminars, or maybe we branch out into a different strategy, at the right time, and end up wealthy and sharing our knowledge.
i want to share my knowledge with any family and friends who want to listen. i don’t want to see them retiring with nothing, i want everyone i know to retire comfortably. not dependant on a pension that may not exist. is that a bad thing?
it is the information age !!!
ryanmel
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@ryanmel
Join Date: 2003
Post Count: 30
December 14, 2003 - 11:05 am
alexander heights, perth, WA.
party party party
ryanmel
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@ryanmel
Join Date: 2003
Post Count: 30
December 11, 2003 - 2:20 pm
my 2 cents…..
as far as i was aware, if you have lived in a property and then decided to rent it out and move elsewhere, then you can claim any interest deductions on the property from the time it becomes and investment. depending on your strategy it could be a good thing (if there is still a lot owing) or if you own or have a low principal left on the loan, then the deductions (if any) aren’t going to be very substantial. if you then in the future sell the property, capital gains will be taxed on the percentage of time the property was an investment compared to PPOR
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ryanmel
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@ryanmel
Join Date: 2003
Post Count: 30
August 23, 2003 - 6:46 am
manjimup, love the place, i was born there and most of one side of my family still live there, not that my word is anything to go by, but here is my opinion on manji…….
the timber industry is over and there are a lot of places to sell in town and surrouding country areas, although the returns can be good, most of the young people (future tenants) are moving to bunbury or the city for better job prospects (this info from my cousin (21) whose friends have all done and she is about to herself)
great place but unfortunately i think rental vacancy could be a BIG issue there.
i may be wrong
ryanmel
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@ryanmel
Join Date: 2003
Post Count: 30
August 23, 2003 - 6:39 am
the 11 second rule is explained in the book (0-130 properties….)
basically it’s about analysing properties for potential positive gearing in a small amount of time (11 seconds)
whether you divide the rent by 2 then times by 1000 or just times the rent by 500 you will get the same number (1000 / 2 = 500) it’s just easier to times something by 1000, you just add the three 000’s to the “rent per week” that has been divided by 2.
e.g. $100 per week divided by two is $50 per week, $50 x $1000 = $50000, thats a quick way of calculating whether the property will meet the criteria of 10.4% return pa.
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