aaabbbccc,

Could I please be added to the email list.

If possible would I please be able to get the details of the meeting coming up this Thursday. I will try and attend it.

Cheers,
Dave

Very good reply Marc

I agree totally with Marc’s explanation.
Negative gearing always increases the risk but not always the return.
Cashflow neutral or postiive, allows you to retain cashflow for quicker accumlation of properties. negative gearing can tie you down.

There is a massive amount of information on this subject, just scan some previous posts.

Anyways that is my 2 cents.

Cheers
Dave

Peach

One possibility is to purchase a property as a PPOR so you can claim the FHOG and get the decreased stamp duty benefits but then after a year once you have satisfied the FHOG grant criteria you could then rent the place out.

So effectively you can claim both the stamp duty and the FHOG but the consequence is not renting out the property for the first year. Also remember that once the property is an investment not a PPOR you can also claim the interest and other expenses, which is very significant.

Hope this helps,
Dave

Hello Melbourne investors

Author and Business tool designer of ‘Property Millionaire’, Gary Seeto has just started up a Young @ Heart Property Investment club.

Y@H is a national investment club but is divided into states so each state can easily organise meetings and discussions.
Lachlan and I are the moderators for Victoria.

I have negotiated six free 3 month trial memberships with Gary.
If anyone is interested please contact me immediately and i will pass your details on to administration.

To take a glance at the website click on the link below
http://www.888abundance.com/forum/

Cheers
Dave

Thanks for the reply blogs

Those traffic figures are times in non-peak traffic and i believe are realistic. For peak periods double them. I agree the traffic is bad in peak hours, mainly before and after school.

I haven’t been to Edge Water. I have heard a lot of people talk about the up and coming western suburbs. I rarely travel to the west side so I a can’t really give an opinion.

Glen Waverley and surrounding suburbs has seen significant growth recently so maybe they are overpriced, who knows?

If anyone else has an opinoin in regards to this area, please post it.

Cheers,
Dave

Frank,

Glad to hear your willing to help everyone with painting tips, etc.
The easiest way to go will probs be to post it somewhere on the internet and then put the link into this post.

Im sure someone of this forum will have internet space where they could post your word file and then dispaly the link.

Hope this helps,
Dave

Well that adds a whole new dimension….

It really boils down to what is best for you.

There is 3 options

Op1-
Borrow full amount off parents and pay them back ASAP (Over the 3 years this is the cheapest way)

Op2-
There is a part payment way where you get a 20% discount on any amounts over $500 so you could put in as much as you possibly could and the rest be HECS. Probably 2nd cheapest method (you’d have to calculate this)

Op3-
Full HECS and then try to generate the greatest savings in 3 years to match what you could have saved by paying upfront. Remember CPI adjusted (CPI = 3% approx this in turn decreases the purchasing power of your savings effectively by 3%, hence your saving rate would not be 5.85% it would be 2.85%). Also note interest will incur tax on the interest you earned.

Another Factor-
Was mentioned earlier but i’ll repeat it. The HECS option would allow a lot more options to invest and potentially generate a greater sum in the future. It is also taken out slowly when you reach that certain income so it will not drain your cash flow.

Hope everything makes sense. In summary i still believe paying upfront is the best option.

Cheers Dave

Ok, well.

I am also in the same situation as you, but i am paying my fees upfront. This is the reason why.

Year 1 Hecs 7000
Total Savings 5821.75 (5500*1.0585)
Year 2 Hecs 14000
Total Savings 11984 (5821*1.0585+5500)
Year 3 Hecs 21000
Total Savings 18506 (11984*1.0585+5500)

So after 3 years your Hecs will still be more than your savings. Thus as i see it you still owe money for your education when it could have been paid off. Also don’t forget that you will have to pay tax on that interest you earn

So my advice would be if you can afford to pay upfront then do so otherwise maybe find other investments with a higher return.

Cheers, Dave