8.5% + gst is pretty standard up there for PM fee.
5-10 for petties per month.
1 week rent + gst for each new tenanted lease.

Mal

Getting out of your comfort zone, can help you become comfortable

Avg 92-95% on IP’s
60% on PPOR

Guess I’m not as conservative as most.

Mal

Getting out of your comfort zone, can help you become comfortable

I don’t think there is any CGT in this scenario.
Consider building at the back first though.

Mal

Getting out of your comfort zone, can help you become comfortable

As non of my IP’s are within 2000km of home, I guess that makes me an “Intermediate”. But as far as I’m concerned I’m still a bit wet behind the ears, always learning though.

Mal

Getting out of your comfort zone, can help you become comfortable

Hi Parvin,

I can’t really help you out in Vic contracts.
I’d get an Inspection report for your own piece of mind, everything may be fine. If there is anything significant, speak to your solicitor.

Mal

Getting out of your comfort zone, can help you become comfortable

I’m an Analyst Programmer working on investment/ portfolio management solutions. I’ve been doing my Comp Sci degree part time for the last 6 years, which this time next week it will all be over. Woohoo, now I’ll have even more time to focus on my real passion… real estate.

Prior to IT, I’d done accounting for a big 4 bank, mechandising, night packer, general hand in a factory, a courier, and I guess I can even say that I cycled full time for a period there.

Definitely not a computer nerd, it’s the business behind the solutions that I enjoy.

Some of you may have just inspire my next career move.

Mal

Getting out of your comfort zone, can help you become comfortable

Hi Rabey,

That is how I pay all my IP expenses that are not already deducted by the PM.
I don’t authorise the PM to pay any of my expenses, like BC, insurance, rates etc. Only adhoc maintenance that they organise if required. I draw down from a seperate investment account against my PPOR mortgage. All rental income goes into my mortgage, every month the interest due on the investment account is swept across from the PPOR account.
The balance on the investment component keeps increasing, but you pay off your mortgage faster. It’s an effective method of moving your Personal debt to Investment debt legally, as your rental income does not have to be used to pay the expenses. But as Simon said, you cannot claim any capitalised the interest. Easier just to pay it when it’s due.

Mal

Getting out of your comfort zone, can help you become comfortable

Hi Trish,

I think you already have a pretty good idea of what you need to do, you just feel like you need the reassurance that what you think is right.

You sound like my wife. I never did understand why she saved money, and had it sitting there earning interest, and have personal debt being charged upto 4 times the interest that she was getting on the savings. – her answer – she was tying to establish a savings history. – my response – but you’ve got a personal loan that you are proving that you are capable of paying off.

Unless, someone needs a car for work, i.e they are on the road a lot and its a business deduction, I have no idea why people get into so much debt with something that they know is going to lose value. – I’m a bit bias though because I’m not a car person.

1st suggestion – pay off the Credit Card from the savings, the repayments that you don’t have to pay on the card, should go into the Personal Loan, this will pay it off much faster.
Leave the rest of the saving there, it will help knowing that you have savings, and it’s not as hard to get started again.
2nd- if you don’t need the car, get rid of it, or downgrade. – this is a hard one though, for people that are car lovers of see the type of car they drive as a status symbol.

See you didn’t need anybody elses suggestions did you. Good luck, you will achieve what you want, as soon as you’ve worked out the difference between good debt and bad debt.

Mal

Getting out of your comfort zone, can help you become comfortable

Hi Jason,

I understand what you are saying, but I would tend to agree with Simon with having IO mortgages. If you want to pay in extra, pay it into an offset account, so you have easy access to the money for your 6/7 purchase.

Having said that I have 1 mortgage at the moment that is P&I, due to the fact that I really wanted this place but didn’t have everything sorted at the time, so I borrowed 90%, incurring LMI, thus not being able to have it as an IO loan. This was in Perth though where it is in a rising market and the plan is to have it revalued within the 12 months. The valuation should come very close to having the loan to new value being 80%. I’ll then shuffle things so it is at 80%, then request a refund on the LMI, and convert the loan to an IO loan, freeing up an additional 200+ per month.

In the meantime, upstamp another mortgage that has sat there for a couple of years to 80% LVR. This gives me a deposit, the 200+ gives me cashflow to ensure that I can fund a -cf purchase.

Mal

Getting out of your comfort zone, can help you become comfortable

Dazz,

You can’t rent a 2 bedroom unit within 20 of Sydney for the price of a 3×1 in Perth. I say we all jack the our Perth rents up an extra 10%, then tenants really don’t have a leg to stand on. Lets just pretend we a dealing in petrol.

Mal

Getting out of your comfort zone, can help you become comfortable