Hi Kirby319,

Ok this is what I would do.

If you have the equity then buy the place and try and improve on it without spending too much money.
(i.e. paint it and clean it up, or whatever ….)

Then get it revalued. (Make sure your bank will allow you to revalue the property soon.) This time make sure that you are there when the valuer comes over…[Read more]

Hi Judith,

Yes it seems like they will cross collaterise. This may be good or bad. (Yes there is a good to it) But in your case it would be bad.

You want each mortgage to be seperate. So this is what you may want to do.

Ask your bank to revalue your property an borrow the 20% you need to purchase your IP. (I would recommend a LOC but you can do…[Read more]

Hi Cris,

From what I understand they have lost twice in the lower courts and have gone to the high court to stop people claiming the capitalised interest.

If they loose in the high court again they will probably change the law.! (Yes they can do this, well not exactly them but they will ask the government to change the law…[Read more]

Hi Cris,

Like Saskatoon and Peters have already mentioned the ATO does not like Split loans because of the capitalised interest on the IP loan.
However I did some calculations using split loans WITHOUT claiming the capatilised interest and you still come out miles in front.

The good thing about split loans is that they help to reduce the loan on…[Read more]

Hi Cris,

OK what you may want is a split loan. This will allow you to have two loans. One for your PPOR and the other for your IP. You can then make ALL the repayments into your PPOR loan and therefore reduce the loan faster.
The interest on your IP loan will be tax deductable too.
With your income and figures you gave me you will have no problem…[Read more]

Hi Cris,

How much do you owe on your property?
What is your income roughly? and how will you finance an investment property?

This will help me answer your question.

APIM

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Australian Property Software

Coming very very soon…
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Hi Spocky,

Finally got the website up and running! (still need to double check everything is working but you can download the spreadsheet if you want.)

You can have a look at what the spreadsheet can do at http://www.apim.com.au/apdm.htm

or download it directly at http://www.apim.com.au/apdmdownload.htm

APIM

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Australian Property…[Read more]

Hi Novice,

Actually your deal is not as bad as you may think.
From the quick calcs that I have done it looks like it will cost you a bit over $2,000 dollars to keep AFTER tax. (If the interest rate doesn’t go up etc…)

Make sure you depreciate the property and claim all expenses. (including interest. The stamp duty is a capital cost NOT an…[Read more]

Hi Mathew,

I have been out of action for a day.
Not going to make a big deal out of this but do want to put the records straight.

The reason why I like Steve’s approach is becasue he is a peoples person rather than just making money. He says to “invest in the people NOT the property”.

I agree with him that there is a lot more to property than…[Read more]

Hi Trying,

One thing to keep in mind is that if you have property (or land) in the trust you will have to pay land tax on the total value of your holdings. There is no threshold as for individuals.

This isn’t really a problem since the advantages far outway the disadvantages. (just something to be aware of.)

APIM

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Australian…[Read more]

Hmmmm….,

I thought there was more to property investing than just numbers…

OK I have no intention to make a “flame post” but do want to put another view across.

1) I could never agree with such practices, and feel no sorrow for the workers. They stay on the job because of drugs and fear. They COULD find a better job if they really wanted…[Read more]

Hi,

quote:To have the house you live in classified as your PPOR you need to live in it for 12 months before you can sell it. Correct?

Not exactly. You can live in it for 2 or 3 months and then move on, but you would have had to have the intention of it being your PPOR. (You would have to get your mail delivered there. etc..)

Also if you do it…[Read more]

Yes,

I have nearly finished my website and there is a free excel spreadsheet that will do what you want.
Should be finished by tonight.

APIM

*************
Australian Property Software

Coming very very soon…
*************

Hi mh,

Do you have a PPOR, or is this going to be your “PPOR” so to speak?

There are significant implications depending on your answer. Let me know and I will fill you in.

APIM

*************
Australian Property Software

Coming very very soon…
*************

Hi Jumbo123,

The calculations are really not that hard, and in actual fact your bank will tell you on their statements the “interest” component you have paid and the “Principal” you have repaid. If they don’t just ask them!

For property investing it is nearly always better to use Interest only loans.

I am not sure I understand what you mean by…[Read more]

Hi Quentin,

Good work. How about underlining the titles and putting the authors in italic so that it is easier to read.

This should be on a page of its own and it would be great if people could vote and put reviews on books (a bit like Amazon.com)

APIM

*************
Australian Property Software

Coming very very soon…
*************

Hi Soosh,

No i am not insomniac[], I just work till very late… but I get up late too [8D]

It is important to know what will happen to the suburb in the future. If investors are going to come in and start pulling down and rebuilding then defenitly keep the property. (Is your block flat? does it have views? How big is…[Read more]

Hi Soosh,

I need a bit more info.

– The interest on your loan

– Council rates

– Water rates

– Insurance

Once I get these details I will be able to have a closer look.

A good deal is a good deal, and I think this is a good deal. (so basically you can’t loose. You just have to decide which is the BEST way to proceed.)

Based on my quick…[Read more]

Hi Soosh,

Just a few questions.

1) Is it worth renovating? and then selling.

2) Why hasen’t it been rented out yet?

3) Are there any problems with the house?

I will do some sums and post them up for you.

APIM

*************
Australian Property Software

Coming very very soon…
*************

Hi Everyone,

Thought I might add a bit more:

1) Getting a good “team” together is a must (i.e lawyer, accountants, banks, real estate agents etc…)

It takes time to get a team together, but is worth it. An important thing is that your team will start to know you better and learn how you operate.

The two MOST important people are BANKS and…[Read more]