OK, I’m consulting my crystal ball and I can see you are going to get conflicting advice from this forum for both your questions.

One of the problems of posting questions like this on a public forum is that for us, the posters replying to your question, it’s all care and no responsibility. You need to take your questions to the person whose…[Read more]

Originally posted by indigo_violet1625738:
Thanks all for your responses-
I have about 10K available for redraw on my own home, however I would like to avoid dipping into it. My own mortgage is a debt i want to quickly get rid off to allow me to free up cash for investing. I divert part of my income into a high interest savings account which i…[Read more]

Originally posted by young investor:
Where would i go to speak to a professional about purchasing a property i have a appointment with a finacial advisor today at my bank but he said on the phone he can not advise me about real estate i need to speak to someone to understand more about tax can someone here maybe explain tax to me in more detail in…[Read more]

How about refinance? Have your 2 IPs grown by, say, 20% since you bought them? If so you shouldn’t need to use any of your own money to purchase your next one.

*** SPAM ***

where are the moderators?

Firstly, you have done unbelievably well.

Although you don’t say it, it seems like you may be taking out P&I loans. If you want to speed up aquiring properties then you should be taking out interest only loans to improve your cash flow.

This highlights that you are in fact after 2 different advisors
1) An accountant for tax advice
2) A financial advisor for investment advice

Neither can do both.

Navra Financial Services (www.navra.com.au) is Sydney based and is one of the very few financial advisors who strongly recommend property investment. The company has an excellent reputation amongst property investors on that other forum.

The example Dazzling gave looks only at cash flow, it doesn’t take into account capital gain. However as I pointed out, the financial benefit of owning a property is the captial gain. That is what my equation tries to take into account.

BTW, you need to put in your own figures into the equation. What do you think the capital growth will be for…[Read more]

As I said in another thread, “rent is dead money” is just a crappy cliche that means nothing and is plain wrong. Rent is the price to keep a roof over your head. What is dead about it? Interest on a mortgage is dead too, no??

Do not make you decision based on cliches you haven’t thought through.

That said, I say stay put. Nothing to do with rent…[Read more]

One question, why would this family do this, what is in it for them?

Here’s my equation with errors corrected.
===========
Removing emotional factors such as enforced saving, pride of ownership, tenure, this question boils down to numbers.
CG is the % likely capital gain
M is the mortgage rate %
G is the gross yield %
N is the nett yield %

Mull over this very simplistic equation:
1) Owning net benefit = CG – M -…[Read more]

Originally posted by foundation:
Originally posted by shake-the-disease:
1) Owning cost = CG – M – (G – N)
2) Renting cost = G

Lets look at a median priced house in Melbourne, the figures look like this:-

1) Owning cost = 8% – 7% – (3.5% – 2.5%) = 0%. Yes, this means effectively it is free to own a property based on those figures.
2) Renting…[Read more]

Got to agree with Wylie.

If you have negatively geared property then you mustn’t have bought them for the income, instead you bought them for the capital growth. So why are you now using just income as the criteria for whether you keep them, that is not what the investment was designed for, right?

Property is a great generator of capital growth,…[Read more]

What does “rent is dead money” mean?
If rent is “dead” money, then what then is interest on a mortgage?
What about food to keep you sustained, is that “dead” money too? No I don’t think so.

You need to question cliches like this.

Rent money is not dead money, it is the price you pay to have a roof over your head.

OK so back to the question, how…[Read more]

Congratulations, you are in a fantastic position, especially considering your age.

My advice is ……. do nothing. You are exactly where you should be, pushing 80% LVR. You have done the hard work, now let time grow your asset base and as it does borrow more and continue to gear into more property or shares.

Selling is simply absurd, I can’t…[Read more]

There is another person on this site posting up a storm, who used to be a RE agent for a bazillion years. (red flag, or what!?)

Is now trying to flog off his mates’ developments and offers them to me (!!!!) to offer to my clients and then split the fee!!!!!

I like guessing games. How about “Green Planetary Sticker Neglect”? Am I warm?

Originally posted by Qlds007:
Regrow

No the interest isn’t tax deducible.

Cheers Richard
richard@yourstatefinance.com
http://www.yourstatefinance.com

IP funding and US property finance
our speciality

I disagree, it is deductable, it is a legitimate cost of doing business.

Try the “How you could build a S10mill property portfolio in just 10 years” by Peter Spann. Peter bought a lot of properties in NSW. Don’t be put of by the title, it’s an excellent book and an entertaining read.

Even though the % managment fee may be the same, make sure you take into account the once per lease fees such as the letting fee (sometimes 2 weeks rent). Short term rentals mean more one off PM fees. Also, depending on how short is short, say less than 6 months, you might also want to consider
1) including utilities (except phone) in the rent
2)…[Read more]