Hi hwd007,

I think I know where you are getting confused.
You must look at each property on its own….

So if you are negative gearing, the property will cost you say $5,000 p.a. Before tax. (Don’t worry about your income for now.)

So this means that whatever your tax bracket is (say 47%) you will get back 5,000*47% = $2,350.

Ok now what…[Read more]

Hi Joanne

I am not sure people are allowed to lend you the DVD’s or the manuals.

If they did they would have to make sure that they didn’t sign any contracts saying they couldn’t.

This NII group doesn’t sound to good! Wouldn’t suprise me if they were reading this thread so beware!

I can tell you now, $15,000 is way to much for any seminar.…[Read more]

Hi MiniMogul,

Sorry to hear the bad news. Things will get better…

Anyway I wanted to mention something VERY important.
I have seen people get “stuck” on rent and holding out for their figure, when this is NOT RATIONAL!!!! (exept for commercial properties.)

OK Let me show you the numbers (I must admit that this took me a while to digest at…[Read more]

Hi Everyone,

Thought I would try and balance the views a bit. Why negative gear? There are a lot of reasons and you will see why by the end of this post.

(To give it away you will see that the BEST strategy is actually to have both Negative AND Postively geared properties, with a ratio of 1/3 or 1/4). I will not go into the details , but just…[Read more]

Hi Brad,

quote: Is that all I should be thinking about? Are there are other things / issues that are evident that I’ve missed.

YES… What are your goals? What is it that you want to achieve?

*************
Australian Property Software
APIM: http://www.apim.com.au
APDM: http://www.apim.com.au/apdm.htm
*************

Brad,

None of us really know what your problem is.
Could you elaborate a bit more…

*************
Australian Property Software
APIM: http://www.apim.com.au
APDM: http://www.apim.com.au/apdm.htm
*************

Hi Mala,

There is some really good advice here!
OK I am going to ramble so feel free to skip this post if you don’t have the time to read it…

What peterp said is excellent and very true. It is interesting how some people will be ready to pay someone $16,000 to spoon feed them when ALL the info is out there (especially on the net).

It is very…[Read more]

I heard on the radio a few months ago that Australians have about $800 billion in superannuation….

Which is worst !!???!?!![][xx(][?][?][?]

*************
Australian Property Software
APIM: http://www.apim.com.au
APDM: http://www.apim.com.au/apdm.htm
*************

You can download my free copy.
I don’t know how it compares with theirs, but it is free and you can modify it as much as you like…

It will do all the calculations you will need.

Just click on the link next to APDM.

Cheers

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

APIM: http://www.apim.com.au

APDM: http://www.apim.com.au/apdm.htm

*************

Hi Tiff,

What are the deals? Have you already exchanged?
I am sure there might be some people interested in your deals. You might be able to transfer the contracts to someone else that would be interested in them.
A lot of people don’t have the time to look. You already have one or two that would be good for them.
Let us know how the figures…[Read more]

Hi Youngie,

Sounds interesting. How about I buy a block of land and then sell you an option to purchase it in December. If the price goes up then you complete the option. If the price falls you can pull out.
This way you carry no risk (but you will have to pay for the option.), and I carry the risk.
I would need to get more info though so email…[Read more]

Hi Terry,

Ok thanks for the explanation. I understand what you are doing now. I agree that this seems legitamate but I am NOT an accountant either. (not even a mortgage broker for that matter!).

Not sure I find it very useful though. Will keep it in mind however.

APIM

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

APIM: http://www.apim.com.au

APDM:…[Read more]

Hi Stu,

Thanks for the links. I read them and found them well balanced.

You are correct in comparing apples with apples. If people put their diposabe income back into their loans they would be in front either way. However I am not sure that many people do this. The worse would be for them to but their disposable income into a savings account…[Read more]

Mathew,

I see a BIG problem with what you wrote. I don’t know where you got your info from but it is wrong. (or did you explain yourself wrongly. It makes me worry that people are giving this kind of advice.) I agree with what lynne14 said.

Stuart,

I am not sure I understand what you mean by:

quote:That is, you are better off paying…

[Read more]

Hmmmm,

I had a good read of this. At first I thought, yep this is your standard split loan arrangment, but after reading more carefully it doesn’t seem to be.

Yes there is a way to repay your PPOR loan much faster but I think your friend is doing it wrong.
He needs to make “special” arrangments with the banks, but he shouldn’t be using the…[Read more]

Hi Avranjes,

What you need is the yearly interest rate (call it i%), and the amont you want to borrow (call it X)

Since there are 52 weeks in a year, your weekly repayments on an interest only loan is:

weekly repayment = (X*i/100)/52

so if your interest rate is 6.3% and the amount you borrow is $100,000 then your weekly repayments will be =…[Read more]

Hi Fullout,

Landlord insurance or malicious damage insurance?

Not sure what you mean but I know they will insure IPs as well as PPORs.

I am not sure whether they have malicious damage. I am prety sure CGU do. The best is to call them up and ask.

Not sure what you mean “by combination of a few”

APIM

*************
Australian Property…[Read more]

Hi Everyone,

We used to use Zurich because they gave us a discount (15 or 20% can’t remember exactly.). However now that they have been bought over by QBE their prices have increased!

We called NRMA and saved $1,250 !??!?
Saved nearly $400 on the car and $500 for my PPOR!!!! and now I am a member too.

I also use CGU but think they are a bit too…[Read more]

A good deal is a good deal no matter where the property cycle is!

If the numbers stack up and you know what you are doing then go ahead. The good thing with property (unlike shares) is that people need a property to live in.

APIM

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

APIM: http://www.apim.com.au

APDM: http://www.apim.com.au/apdm.htm

*************

Hi andyj,

Let me try and answer this one:

quote:If I buy a new resi property for 330k inc GST will the BANK value it at 300k or 330k?

NEITHER!!!! The bank will send a valuer around and whatever figure he comes up with will be the value of the property. It can be anywhere between 250K and 380K. HOWEVER your bank will use the lesser of the contrac…[Read more]