Forum Replies Created
Hi Chris,
Good on you for that saving. Did’nt have a brain to bless myself with when I was in your position. Anyway, as you obviously did not have your car ‘financed’ as such through a bank or credit provider, it is already unencumbered….or all yours. And of course, while you will be paying your folks back, and have nearly finished doing so, that is obviously ‘unofficial’ so as far as any Assets and liabilitiies go, it is your car is a 100% asset, and you don’t have any liabilities officially. With your cars value, rather than listing it as whatever it is worth according to a dealer, or redbook or elsewhere, if you have it comprehensively insured, you would quote the replacement value the company shows on your insurance policy….always more generous than a ‘wholesale ‘ price, and makes you look better naturally. All the best….you’re well on the way! [thumbsupanim]Originally posted by Dazzling:
[What I can’t understand for the life of me, is the amount of people who need or want glorification based on some prediction of what may happen based on their obvious and considerable knowledge.
The other thing I don’t understand, is if someone feels that strongly about something and are sure it (whatever it is) is going to happen, how they never seem to put that “knowledge” to it’s best use and profit from it.
People, stop worrying about what people say / predict……and get busy doing !!!!!!!!!!Dazzling…..Sentiments here that I agree with. Well said. Very well. (Congrats on the API article too……if that is/was you?)
Depreciator, they are some good figures and helpful comments too to put things in perspective. Thanks. [headphone]
Hi Paul,
You could always buy a house half an hour away in Ouyen for $50 grand…your FHOG would give you 80%lvr !!! (ahrgh..just joking!) Seriously though, if you are living there for two years, paying rent, and you could get into a modest home using your grant, and deposit where necessary, without paying any more for the loan than rent don’t you think that would kinda make sense? And even if not much is happening there at present, unless you bought unwisely you would have to be pretty unlucky to lose money. You would be back in SA, and have a nice little investment property to rent out in Mildura. How do the figures stack up? All the best with whatever you decide.Hi Draconis. Chalk it up to experience……at least you have a nice car, and if it is economical it is a win- win. By the time you sell it wear the loss, and then by a cheaper one, you will end up having lost money and have a pus-box, as opposed to having lost money and a newer reliable economical car! That’s not a lot to spend on a new, economical car that’s for sure, and with your motoring probs out the way for a few years you can concentrate on the property! With the Assets and Liabilities (or statement of position) if your vehicle is encumbered, or has a charge over it it is not yours essentially, as you have finance owing on it, and it is a liability… If you own it outright/pay it off or get ride of the charge over it, the whole car (or portion you own) is an asset, so it looks good on paper for you when filling out your application for finance, giving you a ‘stronger position.’ [specool]
All the best.Hi Rob. Congratualtions…..you have in your posession what others are scouring the countryside for…..cashflow and capital growth. The unit sounds a beauty…well done. My personal opinion (which is what you are asking for…) is that unless you were bordering on destitution you should hang onto these, and maybe still even then! The replies so far I agree with for sure. You have a ton of equity, and if you are happy to have one loan for two properties (often called cross collatoralizing, which some like, others say no way ever to) may even find you can leave one of the existing loans untouched, and still stay under your 80% LVR. All the best with your portfolio! [strum]
Hi. We are using AAMI at present, had a bit of a shop around and they are always good value. Got the Building insurance, with some contents cover, and the landlord insurance on top of that. (Got to get them all together) Seemed to cover most things, inc accidental and deliberate damage etc. never claimed though. The one occassion I wanted to was for broken glass but it was less than my exess….must think about lowering it next renewal. I would have gone with Terri Scheer i think otherwise, as it seemed to cover even more as far as court costs etc go, and from memory seemed more ‘specialised’. All the best with you r search.
Hey Josh….great explanation, especially re the cross collatoralizing. Pro’s and con’s both ways that’s for sure. Thanks[whistle]
Hi Tony. Good idea, and great to go for suggestions and input. POSH+ is what I use, and the features are pretty good, does a great P&L. Like anything, there is stuff that it could do without, and stuff it could do with too ….. A distributor in Australia is http://www.manac.com.au and there are some screen shots there, and it is also usually advertised in the back of API magazine. Be interesting to see what you come up with. All the best.[thumbsupanim]
Hi Porsha. Just remember that each state has different buying proceedures/processes as far as making and accepting offers, gazumping, conveyancing (whether you have to use a solicitor or not) and other issues, as well as stamp duty and land tax rates etc. among other things. Make sure you check that out first depending on where you are looking…sorry if that is overstating the obvious, but was not sure how much you have looked into it. Yeh, NSW sucks the worst, makes you wonder why we live here. All the best.
Hi. Good on ya! Just thought I should clarify a point mentioned in another reply as far as Interest only loans/payments go …….there is no problem getting an IO loan for owner occupied property, so the refinance issue would not arise. Andas Aperry mentioned make sure you link it to an offset or all in one account until you move out, so you can save as much on interest as possible. [specool]
The take home message here, is there will NEVER be a good time to buy.
Tsk Tsk Dr.X Umm…..I’ll be positive. I just could not resist the age old saying that we should probably all take a bit more notice of (IF we plan on an RE investment path as our future thing…)
The BEST TWO times to buy property were 10 years ago and NOW !
There. WIsh I could credit myself with that. .. Courtesy of John McGrath I believe, but simplisticly accurate eh?
Good posts DLPP and DrX.[party]Hi Sarah. Agree about the inner west coast Tassie mining towns. But the area on the North coast, between Wynyard and Devonport seems ok, and I think parts of Launceston would be good to buy, although I have not looked there. Done a bit of sniffing around over that way, but Burnie area is pretty hard to beat for value I think. Tight rental there at the moment. Smithton could be interesting in the future too. There are parts of most areas it is good to give a wide berth to though, but you can usually get a basic idea by the price to house quality, and a generally question to a good real estate agent over there…..ie. You are interested in looking at a property there, very approx price range, and say you have not looked at anything specific but are there any areas in the town you are looking at that they would class a ‘not good’, and they will usually tell you. After all, they want you back. (supposedly!) All the best if you buy there. [specool]
Hi modern. Congratulations on making a start. A few years back the concept of an interest only loan made me laugh, as I only thought from the prospective of being a home owner, and of course interest only means you never pay off your home. For purely investment though, the interest only componant of your loan is tax deductable (against the rental revenue) whereas any payments made off the principle amount are not. Naturally, if you have money coming out of your ears paying off houses is great of course. With the interest only loans the paperwork will usually show that you have a period of interest only (eg. 10 years) followed by X amount of years principal and interest, (eg another 20 years) and then she is yours when you are old and grey! The idea being, as you said, after the interest only period you can sell, refinance, or do something else that you probably have not even thought of at this point….with the idea that what you bought the house for, and have not actaully paid any off, is a small amount compared to what your house is currently worth. As far as banks/others saying you cannot get IO loans, all I can think of is that the very cheapest loan pacakges/interest rates sometimes do not allow this, but other than that you have the choice. As DLPP said, see a good broker, or non-bank lender, they will help if you have no joy locally where you are. All the best!
Thanks John for your words of encouragement. We can’t all snatch the jobs and go galavanting around the countryside. I have done heaps of research via the net, (and a couple of purchases, one sight unseen) and while less than ideal it beats the hell out of doing nothing. Hope you do well with your deal. Again, postive comments (when true!) are good. Thanks
Hi. I am quite happy with a program called POSH . You can get infor at the following link, all the best. http://www.manac.com.au/cgi-bin/products.cgi?sku=73931
I think we can nail this topic shut now? Not that I am a moderator or anything, but I did give one reply that I hoped would be helpful, and others with more experience/finance wisdom than me have done similar…….what is that expression about a brick wall again? A local TAFE course in spelling or workplace communication will go no end to assisting with making financial and other decisions, then perhaps consider talking to some banks, well known non-bank lenders, or MIAA qualified Mortgage Brokers I reckon. That bottle of Shiraz beckons me to finish it…….. [offtopic][sleepyanim]
Hi Island! Nice comments. I too have read both books, and enjoyed both. Steve’s is a lot more gung-ho, Margarets more slow and steady. I admit to feeling the same way a bit, and while I admit it was essentially Steve’s book (the second one, with the MAPPERS in it) that got us fired up, there are so many ‘seminar junkies’ that have been ripped off blind by armchair property ‘guru’s’ that a few warning don’t go astray. A lot of the so called ‘easy money’ some of these property books mentioned is long gone, and you can be left feeling a bit out of it if the elusive ‘killer property’ cannot be found. A lot of the members here have stated you simply have to get out from the office, and go hunting, scouring and doorknocking. Good, but depending on your circumstances can be most difficult? Naturally this is my personal opinion, but based on some I have seen, is FORGET the financial planners. (Although Margaret Lomas I would exclude from that based purely on what I have read) and take in whatever info you can from books like you have read, others that have an interest in real estate, and then make a start…small and simple for the first one or two. We have settled for stuff that is a few dollars casflow negative (only $7 a week) but it got us started, and with the 3 or 4% growth so far will return money down the track. Don’t get discouraged though…….As Matthewc73 said, get your own little strategy worked out, and you will not look back. There are a few forum members doing this full time now (although a lot of them drive ordinary cars but that’s another story!) against what a lot have said, and it sounds like they ae going really well…..gotta take my hat off to them. ANyway, enough waffle from me……let us know how you go! [specool] PS If you really want to get fired up, check out Paul Connors latest book, get real get rich (No I don’t agree with it all, or know him, but if you want motorvational, that should take care of things for you after Margaret Lomas book!)
Hi. If you withdraw the actual funds that you have paid in extra, you can do what you like with them…..it’s yours to use as you both see best. What some people do though is withdraw equity, claim the interest as a tax deduction, and use the funds for personal things, buying a car, holiday etc, and this is an absolute NO NO. Just something that you may like to think about though, even the best interest rate in a savings account will not be as high as the interest you pay on your houseloan/s, so what makes sense from where I am (and we have done) is stick the money either in an offset account or in the actual loan account (if it has redraw) and the money you save is not taxable, whereas the ‘interest ‘ is in another account. While if you do not earn any other income yourself, you will not earn enough money on the interest to pay tax, I thought I should just mention it. All the best. [cowboy2]
Hi Damon. My understanding with the breakfree package is that you have direct access to your ‘personal manager’ via the phone , for the running /details/questions etc on your account. You will find the ‘head office’ may be more knowledgable on this than your local branch manager. I have the info on both accounts, and under the breakfree package the Equity Manager annual fee is waived, is basically, other than the interest rate of course, your main difference is that the equity manager is a full transaction account, so your income etc does go straight in, and your credit facility/credit cards etc are also all linked in. The Home equity loan is basically just that, LOC on the property, with no other ‘tie in’s . You may like to double check, but according t o the ANZ website, it looks like your accessing Equity manager funds via ATM it has to be an ANZ? Have a look here if want to see them side by side. http://www.anz.com.au/aus/homeloans/productinfoequity/equityManager.asp
I guess with the interest rate lower, you would have to not want an ‘all in one’ transaction account to not go the one you chose in the first place….equity manager. All the best.Hi Daniel. Good on you for making a start. Without getting technical, you are actually in quite a good position, in the sense that purely depending on how you go about deposit/finance, based on your goals as far as living arrangements etc, you are ideal to try and get into a cheap but oozing potential home, that needs some TLC, using the first home buyers grant, and your deposit, and then over a year or two just be sensible, freshen it up, and then you can sell it all going well, and whatever profit you make (assuming you do….which you will if make sure you look inot it a bit) you will not pay capital gains tax on, and then you can use this to fund the next place and so on. Some will say never sell (which I agree with in purely IP’s) but you can use the sale of the house that it is your principal place of residence to make some ‘tax free’ (not really, you pay enough along the way eh?) money to look at your next step together. The prices down in our part of the country have dropped a bit, and may do a bit more, so get a feel for what places are going for over the next few months until you are in a position to pounce. As a side pont, some of the books you ention are great, but while the principals still are spot on, the strategies are a bit dated now, as the positive cash flow properties for entry level purchasers are few and far between now, and eve[strum]n less with interest rate increases since the time they were written. Have a read of Cathy Jayne Pearce ‘Real Estate cash form treasure and trash’ and Paul O’Connor ‘Get rich get real’ if you are after some new ideas, and also wish to rennovate/value add to a proeprty for resale.
I genuinely wish you all the best. V8
