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Thanks Guys this is really great info i really appreciate it.
So let me get this right, i can use the 1st IP as a deposit and then borrow the other 80%, so would i be able to pay the mortgage section off first or would it be there for the life of the loan????
now if i wanted to get 2 more IP’s could i use 40% mortgage divided over the 2 new IP’s and then the rest the new IP’s as 80% each???
once again sorry for being a pain in the rectal passage, but i am only just starting out and the more i learn from you guy the better i’ll be.Ok
At this point in time my brother only owes about $10k on the property, so i don’t think that that will be a problem.
once i beat him into submission to sign the loan documents, where do i go from there???
do i take the loan out and use the house as a guarantee on the loan or is there a better way ie Equity mate. not that i now how that works either.
i have only ever got personal loans not housing loans, i paid cash for my half share in this house, so i am not real sure on the proceedures or the best way to do this.
I am also guessing that i will still need upto a 20% deposit whichever way i go is that correct??thanks again
Ty
Ronulas
I asked a simular question not long ago and was put on to this address
http://www.ato.gov.au/individuals/content.asp?doc=/content/42782.htm
This explained everything that i needed to now, give it a try, i learnt a hell of a lot from it.
Ty
Go hard or go home
ok guys
I have started to read the stuff on the ato web site that derek informed me of, the way i read it, if i have a loan to add the extra room on, i can claim all the interest incured on the loan. Am i reading this correct????
As for the depreciation, i can claim this each year but only get a certain % back each year, but can the new room be depreciated, the rest of the house wouldn’t be able to be due to it’s age.thanks guys, sorry for being a pain in the arse but i want to now as much as possible before i make the leap.
Ty
work smarter, not harder
Thanks Derek and Dram’s this infomation is great it’s just what i wanted sorry needed to now.
Just to extend on it a bit more, we are looking at building another bed room on the house, the rest of the house is old can we do the depreciation on the new extension??Ty
hI gUYS.
I AM VERY INTERESTED IN WHAT YOU GUYS ARE TALKING ABOUT AS I AM ABOUT TO START INVESTING WITH MY BROTHER, TROUBLE IS I DIDN’T UNDERSTAND ANYTHING THAT YOU HAVE MENTIONED HERE IF YOU COULD EXPLAIN IT A BIT FOR ME IT WOULD BE GREATLY APPRECIATED. WE HAVE ONLY DECIDED TO GO PARTNERS OVER A FEW BEERS AT XMAS SO I HAVEN’T LOOKED INTO IT THAT MUCH AT THE MOMENT. ALSO I REALISE THAT WE WILL NEED A CONTRACT FOR THE PARTNERSHIP, OTHER THAN A BREAKOUT CLAUSE (ie IF WE GET DRUNK AND BEAT THE PISS OUT OF EACH OTHER AND NEVER TALK AGAIN WHAT HAPPENS WITH THE PROPERTIES) WHAT OTHER STUFF WOULD WE NEED IN THE CONTRACT? AND DOES IT NEED TO GET CERTIFIED BY A SOMEONE?
ANY FEED BACK IS GREATLY APPRECIATED
Ty
(SORRY ABOUT THE CAPS, DIDN’T REALISE IT WAS ON)[blush2]
Collie
One thing to look at is if you are going to rip up the carpet and polish the floor boards, how old is the house/floor boards, what type of timber is it and in what sort of condition are they in. might be an idea to go under the house and have a look at them to make sure they are in good condition or that reno figure could blow out in a big way if they need replacing.
Just a thought, good luck.Ty
Thanks for the input people.
Tony the house is actually in Tassie, my brother only paid $15000 for it 5 years ago, has spent around $15000 extra on it but is in short supply of cash to finish the reno’s, and wants me to put in $15,000 for a half share(it is worth approx $150,000 now), i will have a look at the web site you posted and see if there is a way around paying the stamp duty legally of course.(just noticed that it is a NSW site and will try and find the Tas one)
Does anyone have the web address for a stamp duty calc for Tassie?
once again thanks all for the input. i have a lot more Q???? to ask so stand by for more posts.Ty
I have been thinking about doing the same thing but the Van i was looking at has a long term tenant in it already(old couple) and think that if the van you are buying is in the same boat with a long term lease i couldn’t see a problem. Remember to check out other costs though, ie rental of the caravan park lot etc would have to be factored in and during peak seasons(XMAS) rental of the land it’s on usually doubles.
Good luck and let us now how you go
Ty
Terryw
He paid cash for the house 5 years ago, but due to his work(dairy farmer) he doesn’t have the time or money to finish the repairs. I am currently in the Navy and am going to Iraq for 6 month and will come back with an extra $30,000 for being there so i will be paying him in cash as well. i can understand that you think it is a deal to good to be true, i did to but it is a honest deal and once i finish this one i will be going hard for the next one.
Hi Neo
As i have previously stated i am originally from tassie on the north west coast(Burnie). personally i would have stayed away from Q’town, yes the house was probably cheap but the number of possible tenants in the area is pretty stagnent and as you said yourself the mine barely escaped liquidation, this has alarm bells ringing for me straight away. However, tourism Tas has been promoting the whole state big time and one of the main draw cards is Q,town so with any luck the population will pick up, as for the price they have rose significantly in the last 5 years so you may be on a good thing.
Anyway good luck
Ty
Hi Rav
Thanx for the input, the $120 a week rent is a figure that is on the low side for the area(smithton) and the reason i stated that is because i work on the theory of the lowest figure and if i get more than that it’s a bonus. At the moment the problem is not the contracts between me and my brother it’s trying to get my wife to understand that it is an excellent oppitunity, she is focused on the fact that we will lose our $7000 first home owners grant if we go into this house, she can’t grasp that having a half share in a house worth $150000 is 3 times more equitable than getting the $7000, plus if we got say $120 a week($60 for our share) then saved it, in 2 years we would hace the $7000 anyway + interest and that’s without the tax advantages. i think i will get a proper valuation on the house and rental valuation take it along with her to my accountant and let him slap it into her[biggrin].
Hi All
this is my first message so bare with me
Being originally from Tassie(Burnie) i have considered trying to buy property down there but was informed that it was hard to find positive c/f property. i read Steve’s book about a year ago and have been trying to get into the property market ever since but i am finding it hard to get the cash up for a deposit. however, i was in Tassie for xmas and whilst talking to my brother he made an offer for me to go in halves in a 3 Br house that he brought approx 5 years ago. he brought the house for $15000 back then and has put an extra $15000 or so in getting it refurbished, therefore his price for me to go in with him is $15000. The house still needs a bit of work before it will be ready for tenants but will probably bring in $120 a week, Being a farmer he has no time to keep going with the refurbishment and would use the money to get someone in to finish it off. Looking at house prices in the area for the same sort of house, the prices are around $150000 and upwards. i feel this a great oppotunity for me to break into the property market for a very low outlay and a great on paper profit ie($15000 in for a half share in a house worth $150000[biggrin]) it seems to good to be true, i know but my brother and i are very close and this is a genuine offer does anyone have any advice/comment??????
