While you didn’t mention any specifics, I would say you’re on the right track and he’s just trying to make a sale.

I am not an accountant. But depending on your interpretation of recent ATO statements around capitalising interest, and where you think the property market will go and the rent on your Melbourne property… you could do something like this:

– Move into your parents and live rent free! Yay.
– Refinance everything to interest free loans to minimise…[Read more]

I’m not an accountant, but that’s generally how the tax system works as far as I’m aware. Your tax bill is based on your ‘taxable income’, so in this case it would be $13000. So any tax you paid on that ‘final’ $7000 is refunded, but if you’re still in the tax free threshold then there is little you’ll get back. Just like it might be now, say your…[Read more]

Hi MattyC

It sounds like you’re in the exact same situation as me about 6 months ago when I came to this forum and posted a similar post! You could probably find it if you do a search. In the end I went with the BA and I’m happy. I did go through a few other options, financial advisors etc that I found didn’t really align to what I wanted. For…[Read more]

Hi Yuley,

I’ve got no financial quals, but that sounds like a load of c#$p.

The LOC is held against your PPOR, say $100k. While the IP loan (80% or whatever it is) will be held against the IP. As long as you can service all the loans, you’ll be fine. I have done this in the past, but I’m in a bit of the opposite situation, my serviceability is…[Read more]

Hi yuley,

As mentioned above, I would have a goal that I’m aiming for and then try and figure out how I’m going to get there. You have $1mil+ in equity and plenty of people retire with less, so the question is how do you best use that equity to meet your financial goals. Property may or may not play a role, so I would be looking at finding…[Read more]

As already covered, if you owe $250k on a $400k house. I would:

– Get the bank to revalue the house.
– Change to an IO loan now.
– Refinance the loan, to something like:
– $250k. IO loan that is 100% tax deductible
– $100k. Loan to use as purchasing cost for new PPOR (deposit etc). Either IO or P&I depending on what you want. Secured…[Read more]

Congrats. I wouldn’t worry about the article too much, as hopefully your IP won’t be empty for 5 years!

I would probably rent out both, not just for the reasons above but because:

– It’s an arms length transaction. I don’t really want to be living next door to my tenants. This might work well though if you want to self manage, however, I like to let the property manager handle this.
– If you knock down and build you’ll need to move anyway, and…[Read more]

Just remember that the agent is there to get the most money possible, and things like calling you to say that there is ‘other interest’ is a way to help get the sale and increase the price. If the property is only worth $210k to you, then don’t go above it (especially if you already said that you wouldn’t).

I would reply with an email and say,…[Read more]

I would be interested to know the numbers here, because it sounds like quite a variation.

I will add a bit to the discussion about who is at fault.

– There are good and bad brokers, but a bad broker doesn’t mean he’s a (grossly) negligent broker. Just like any other occupation – surgeon, lawyer etc there are variations in skill set. When using a…[Read more]

I just wanted to add that if you throw in some cash again, to try and get that from a tax deductible source. So if you have a PPOR, pay down a loan and redraw a LOC for investment purposes. In your case you should be getting tax deductible loans for 102% if you set it up correct, which in this case it sounds like you’ll probably do.

Short answer – If your current manager is good, I would keep them.

Longer answer. It really depends on what your time is worth, and how much effort you will put into the property. Take into account the time, increased cost of insurance, the risk you’ll make a mistake and the increased cost of maintenance and it’s probably not worth it. With the…[Read more]

My wife gave birth to our 2nd child, so I’ve been getting very little sleep!

Bought another IP through Richard, and that’s going well.

Looks like my father, brother and I will be doing a sub-division of a property. The contract was just signed for a house with a 2000m2 backyard, and we’re looking at a 12 townhouse development and keeping the…[Read more]

I don’t know why I keep replying, but you’ve completely missed the point. Don’t consult a PM, what would they know? Consult a lawyer, as this is covered by contract law. The PM is the worst person to ask this sort of question as they are completely biased in their opinion.

Contracts need to have ‘consideration’. In this case, the PM will manage…[Read more]

I agree with Jamie, but I will add that with $1mil in equity you should definitely do something with it. With the right advice and decisions, it could easily set you up for life and provide an excellent retirement plan.

No, you wait until you get paid and every RE I’ve used pays out the balance every month / fortnight, then you have the money and they have none, so they will need to get it from you. Most importantly though, a contract GOES BOTH WAYS – they provide a service, and you pay for it. If the Real Estate breaches the contract by not providing the…[Read more]

A tougher stance, would be.

I would send them an email outlining your concerns and ask that they rectify the problems by a certain period otherwise you will terminate the agreement.

If the fail, and since you have contact with the tenant give them new bank account details and get them pay you directly.
Wait until the latest payment from the RE…[Read more]

Hi Kieth,

Why are you going with a new build?… that might be another topic, but I’m not 100% sure I would do the same without looking at the numbers.

Anyway, my father has a couple of units that are set up through CentrePay and he actually likes it. Basically, it’s about as low as you can get, when Centrelink pays the rent / bond directly to…[Read more]

I agree with Kent, especially the Psych part. I don’t really buy on feelings anyway, even on my PPOR. For my current place I openly told REA’s that I had multiple offers in for other properties and the first accepted offer wins. This worked perfectly for me, because two offers were in to different REAs at the same agency. So they found out that I…[Read more]