Forum Replies Created
- JacM wrote:Gotta say I absolutely hate it when the insurance companies ask me how much it would cost to rebuild. Those not regularly in the business of building things would not know. I'd rather them keep a spreadsheet guiding them on the latest rebuild costs and advise me accordingly. It's also very easy to forget things like the cost of replacing driveways and paving, pergolas, carports, garages, fencing, washing line, and gardens.
Thanks very much JacM. Once again all the things you forget to take into account when insuring. Will take it onboard.
Jamie M wrote:Ahhh – Tamworth settlement today. It just clicked!Cheers
Jamie
Yep, it's me. Very excited today!!!!
Catalyst and Jamie – good advice from you guys as always. Will keep it insured for the $320k as is. Hadn't really thought about the demolishing and being taken away side of it before. I've also just had a look at how much my PPOR is insured for and I'm going to increase it tomorrow as I feel it's underinsured.
Shahin – insurer is NRMA. I also have PPOR and IP1 insured with them. Settlement takes place tomorrow.
tlm 1987 – why did I choose Tamworth? I wanted to buy regional and I liked the fact that Tamworth was a big town with several industries and sources of employment. The houses are also reasonably priced. Before I made an offer on it I had about 5 houses picked out in regional areas of NSW – Dubbo, Wagga, Bathurst and Inverell. While trying to decide which one to make an offer on, there was a price reduction on the Tamworth property so I went with that. It was a bit scary as we bought sight unseen.
Cheers,
Sundance
My intention is to stop being a "gonna" and become a "doer". In 2013 I will:
1. Settle on IP 2 later this month.
2. Buy year IP 3 and 4.
3. Sell land that's been on the market for way too long. Have just reduced price drastically so hoping to attract a buyer soon.
4. Sell PPOR and downsize to smaller PPOR.
5. Put excess funds towards investing.
Sundance
Can also highly recommend Jamie M on this forum. He's just organised finance for our 2nd IP in NSW (I'm in Brisbane). Doesn't really matter where you live or intend to buy – can all be done by phone and email.
Cheers,
Sundance
Jewel47 wrote:Hello All!I am a first time poster but a long time lurker. I feel like I already know everyone on the site! I often speak to my hubby and say, well "TerryW said", "Jamie stated", "Jac made a good point about", "Richard suggested". He thinks I am talking about people I know, lol.
I have just read your post out loud to my husband so he realises that I'm not the only crazy wife out there who does this! I could have written that myself!
Cheers,
Sundance
JacM wrote:What quantity surveyor are you using for the depreciation schedule? Maybe ring around some others and see if they can manage to do a better job of figuring out when the place was built for you.Hi JacM,
I ended up filling in the form and guesstimating the construction date. I'm sure they'll come back to me if they're not happy with that.
Cheers,
Sundanceluke86 wrote:Ring your council and ask for a copy of the occupation certificate, that will have the date on it. Its free.Cheers,
LukeThanks Luke86, will give this a try.
Cheers,
DiBrokota wrote:Hello Sundance, I have recently had depreciation schedules done on our houses and the business I paid to do them found out the build date as part of their research, thats what you pay them for. Also your local council will have records of when the house was built. I was advised by my council that if I wanted to know the build date of my house it was free, but if a third party wanted to know there was a small fee to pay. Hope this helpsThanks Brokota, I'll give the Council a ring today.
Cheers,
SundanceThanks for your help Brokota.
My accountant advised that I'd need the build date before requesting a depreciation schedule and have just started filling out an online form to get a schedule done and they are also requesting the build date. Think it may be best if I give the council a call on Monday and see if I can find out.
I assumed that building searches would have automatically been done as part of the conveyancing when purchased but they weren't. Is this normal practice or do you have to specifically request conveyancers to do a buidling search when purchasing? The only thing that was done was a title search. Confused!
Cheers,
Sundance
Jamie M wrote:Sundance wrote:There is an offset account against the loan.Hi Sundance
Do you have a PPOR debt or any other non-deductible debt such as a personal loan, credit card, etc? If so, knock that on the head first before placing funds into the IP offset. If you do have a PPOR loan – forget about using the IP offset and set up an offset against the PPOR instead.
Cheers
Jamie
Thanks Jamie, all good. Our PPOR is paid off and we don't have any other debt. Have been in contact with you offline in regard to setting up for our next IP.
Cheers,
SundanceHi James,
I purhased an investment property several months ago through CBA. There is an offset account against the loan. Each week our wages get transferred to the offset account and we use our credit card to live off for the month. I also transfer the rent received into the offset account. At the end of the month I transfer the necessary funds back to the transactional account to make the loan repayment and pay the credit card.
Cheers,
SundanceCheers,
SundanceThanks Terryw – I hear what you're saying but we have already structured the loan that way so the horse has already bolted so to speak. Am just waiting on the sale of some land and will use the proceeds to pay down the IP loan anyway. PPOR is owned outright so if worse came to worse we would sell it, downsize and pay down IP loan.
Cheers,
SundanceThanks Jamie and Richard – the fact that all the costs were included in the loan was my main concern so glad to hear that's okay.
I realise that we have cross collaterised and have discussed my concerns with the bank but as we only intend to purchase one more IP and then pay both loans down I don't feel that this will be a problem unless I'm missing something?
Cheers,
SundanceThanks Richard and Terryw for your prompt repllies.
Will get in touch with CBA and see whether they're willing to do anything before settlement. Will definitely make sure I set this up correctly for IP2!!!!
Cheers,
SundanceQlds007 wrote:Sundance implications of C/C can be considerable.
I am sure the CBA would have disclosed them to you.I am unsure why they did not loan against your own cash rather than your PPOR.
If you are close to retirement and will be in pension phase you might want to seek Accounting advice before deciding to sell any of your current properties.
Cheers
Yours in Finance
Hi Richard,
Our IP is due to settle this coming Thursday. When applying for the loan CBA advised they could only approve the loan if we used our PPOR as security. Would you suggest I contact them again and ask if there's another way to do it? ie against our cash as you suggested. Or, and I know I'm leaving this extremely late and may be impossible to arrange before this Thursday, would it be better to see if I could find another lender willing to not cross-collaterise?
Any suggestions welcome.
Cheeers,
SundanceHi Terryw,
That is very good advice.
So going forward from where I am now. Own PPOR outright, just about to settle on first 1P. Would like to purchase another IP within the next few months. What is it I need from a professional at this stage? Would the first step be to find a good accountant? Or is it a broker? My aim is to pay down the two IP's in the next couple of years.
Any advice appreciated.
Cheers,
SundanceThanks Luke. I appreciate what you're saying but this is a bit of a Catch 22 for me. Damed if I do and damned if I don't.
Twice in the last 10 years we have acted on the advice of financial planners and been severely burnt in the process. The second time we lost a substantial amount of money. I didn't really understand what we were doing at the time but trusted the advice because these people were the experts and knew a lot more than us.
That is why I'm on this forum – to try to learn to do it myself from people who have been there done that. I expect to make mistakes along the way.
Cheers,
SundanceHi Richard,
No, not yet close to pension age but wanting to retire within the next three years. (I'm 52, hubby 57). Our goal is to have two IP's paid down as much as possible, sell our PPOR, downsize and then rent that out as well. The object being that the rent from the three properties will supplement our income whilst travelling. Hoping to pick up some work on the way. On returning we will move back into PPOR and keep the two IP's to supplement our superannuation. Because we would be looking to pay down the two IP's and because we intend to hold onto them for the long term I didn't think the C/C would be an issue? Please correct me if I'm wrong.
As to why CBA didn't loan against our cash instead of our PPOR I have no idea (light bulb moment for me with your suggestion). And I certainly wouldn't have even thought of suggesting it. I notice from reading your posts that you always emphasize the importance of structuring loans correctly. Other people on this forum might suggest that I should have gained more knowledge about investing before jumping in but seriously, if I had waited till I had a good understanding of it all the cows would never come home!!!! I buy the IP mags and I'm browsing the forum most nights trying to educate myself but for me it doesn't come easily. I am determined to get my head around it though so appreciate any advice you can give.
Sundance
Thanks for your input Derek, although I should have made it clear that what I was asking about was the non tax deductible portion of the loan in regards to taxation.
Richard – we own our PPOR outright. We do have another loan of $188k but we also have $188k sitting in that offset account IO so not paying anything. Yes, we will be setting up an offset account on this new IP loan. Have taken on your comments re cross-collaterisation and have read previous threads on this issue but I'm still having trouble understanding what the implications are. We have cross-collaterised previously with an IP and not had any problems. The property under the $188k loan is on the market and as soon as it's sold we intend using most of the funds to pay down this new loan. The remainder of the funds will be used as a deposit to buy new IP property.
We are nearing retirement and hoping to substantially pay down several IP's to generate retirement income (refer previous posts).
