Forum Replies Created
Thanks for your responses. We worked out the difference between the interest saved (between 6.95% fixed and current variable 7.07%) over two years and compared to the $300 fee to make the change, it’s not worth it.
The loan will be kept on variable interest with the hope that interest rates don’t rise too much in the near future!
Shirley
We are with the NAB. This particular loan is our daughter’s – she had a ‘honeymoon’ 1 year rate of 5.49% on a $68000 loan which finished in October 03. The bank lost her request to refix at the time and the quoted rate is now 6.95% for either two or three years (with adjustments back to Oct as they admitted they’d lost her letter). She’s only 19, 1st property, so isn’t eligible for the Professional Choice package discounts.
Perhaps with the $300 fee we should advise her to keep it variable. What do you think?
I’ve just found out that there is a $300 fee involved in fixing so I’m starting to feel it’s not worthwhile.
Variable is currently 7.07%, fixed 6.95% over two years. I need to do the sums but we will probably leave on variable.
Thanks for your comments.
We use a NAB Gold Visa to pay everything and then transfer funds before any interest is charged. We accumulate a lot of Flybuys points this way.
As for carrying cash …. recently heard of someone moving from Sydney to the north who withdrew all her cash ($5k) but left her handbag in a taxi. Bye bye cash and wouldn’t that hurt!
Hi Chan – best to continue itemising everything yourself. You have a better idea of your business and the accountant would charge you more for the time it takes to sort through a ‘box of receipts’.
Most of you will remember Billfromoz – he’s predicting a fall in prices similar to 1994 in Canberra. He suggests that it would be best to wait until 2005 before considering purchase.
FYI, Bill is planning to start his own forum late January.
Shirley
We pay 7% (but it’s really 7.7% when GST is added) through LJ Hooker. They first said their management fee was 8.5% but we negotiated it down. If you’re paying 7.5% (including GST), that’s better than ours! We now have 6 properties with them and I’ve thought about trying to get a further reduction.
ShirleyI’d do a check on the rental vacancies here. They seem to be on the increase, especially at the higher end i.e. around $300 p.w. $210,000 doesn’t seem too bad a price – which complex/what part of Townsville is it?
ShirleyMackay is quite a nice spot – grew up there. It’s a sugarcane growing district and I read recently that the property market there is very good. The cane industry isn’t doing too well just now which might have an effect on the area.
Hard to believe blocks on Keswick are selling for $200K – I remember sitting in a boat as a kid fishing off the island and watching the goats run all over place! The island is not far off the coast.
We did plan to invest in Mackay mid 2003 – drove there for a weekend to inspect/buy a duplex only to find someone had beaten us to it.
Best bet would be to do a search on the net to find out more info on the area.
Shirley
Thanks for the advice. Our son will be happy to hear this. He didn’t want to miss out on the chance of a free $7000 later if he buys IP now.
Let’s hope the government doesn’t make any changes and decide to abolish the FHOG before he can take advantage of it. I can’t see they will as it can be so difficult for first home owners to get a start.
Cheers
ShirleyThere’s a Keswick Island off Mackay – is that the one you mean? There are two islands close together – St Bees and Keswick. As far as I know, there is nothing on the island but goats! I do seem to recall that someone had bought Keswick and was planning some sort of development. Perhaps contact the Mackay City Council for some info.
Regards
ShirleyS.I.S. – have they changed the rules in Qld? Our daughter bought her unit in Sept 02 and received the FHOG almost immediately.
ShirleyHi Dougdot – don’t write off the income-producing property idea. As well as our rental properties, we have a small mango farm but employ a manager to look after it. We helped pick some of the crop yesterday. It was very satisfying pulling ripe fruit off the trees although I wouldn’t want to do it for a living! A fruit orchard is probably one of the easier types of farming…don’t buy a dairy, whatever you do!
Cheers
ShirleyGhoti – do they not send notices out to say there is land tax payable by a certain date? Are we supposed to contact them to see if we have to pay?
Thanks
ShirleyWe use Kylie Douglas from LJ Hooker Townsville, city office. We’ve been very happy with her and were able to reduce the fee to 7% because we have several properties with them.
Cheers
ShirleyThanks for your responses.
Hope you all have a very Merry Christmas and prosperous 2004
Best regards
ShirleyThanks, Simon. We realised he’d miss the FHOG and I wasn’t sure about extra stamp duty. He’d be losing say, about $17,000. Hadn’t considered the CGT either. Wonder if the tax advantage would compensate?
He has about $35,000 equity in a small mango farm and about $5000 in savings – he hasn’t been working that long. We’d help him more but we are almost fully committed with our other investments.
Any tax experts able to give more advice?
We were keen on buying one a while back but the return just wasn’t there. It was more a 1:1 and we look for a 2:1 return i.e. purchase price was, say $250K, and rent was only $250 per week. Rent is guaranteed but the management fees are far higher than normal. I guess if you want an investment that is free of worry, they’re a good buy.
Our accountant tried to tell us that Quantity Surveyor fees weren’t tax deductible. We’ve spent over $2000 on QS fees and, thanks to this forum, we were able to tell him they were definitely deductible.
I guess the secret is to shop around for one who is up-to-scratch on property investing. I’m half way through an Accounting degree so will be doing our own one day!
We have six, all in Qld, buy and hold strategy. Rental income $1220 per week. We have $300 per week left over after bank takes its cut for rates, repairs and other expenses etc.
