Tax is charged at your marginal tax rate. This may be 48.5% or it may be lower.

Do you have other debt that could be paid off first? What is the interest rate on your Home Loan?

Victoria
[email protected]

Reason can answer questions, but imagination has to ask them. — Ralph Gerard

Did he say why? This doesn’t really make any sense to me either

Victoria
[email protected]

Reason can answer questions, but imagination has to ask them. — Ralph Gerard

quote:
So if I put money into my ip it wont affect the amount of tax I get back at tax time for the propety??

Thanks for your help.

Income is income, regardless of where you put it.

Victoria
[email protected]

Reason can answer questions, but imagination has to ask them. — Ralph Gerard

Hi Renee,

Let me start by saying that a financial adviser or your bank are the people to speak with for specifics, however I can certainly offer you my opinion.

Depending on the way your loan is set up, it generally makes no difference whether you put money straight into the loan, or park it in the offset. If the offset is 100%, then the…[Read more]

A mortgage offset account reduces the amount of interest you pay on your loan. A broad example is:

Let’s say you owe $100,000
Let’s say you have $20,000 in your offset account
Let’s say the offset is a 100% offset (ie. it offsets the whole interest rate, as apposed to a portion of the interest rate)

Then you pay interest on $80,000

These are a…[Read more]

Hi there,

Closing costs are:

Stamp Duty on Purchase
Stamp Suty on Loan
Loan costs (application fee)
Legal Costs (Conveyancer plus searches)
Lenders Mortgage Insurance
Building and Pest Inspection

Anything else which you need to pay out of pocket to buy a house. NAB has a really good calculator which I have played about with and found…[Read more]

I agree with Tamara, variety is the key. I know you asked for reasons why to go into property, but let me express a few flip sides;[]

One good thing about shares, you can enter the market with much less opening capital. For example a managed fund, some start with as little as $100. Try to buy real estate with that little capital.

Or buying a…[Read more]

quote:
Hiya Apollonia,

The day I started to save money was the day I filled up a glass of water & put my credit card in it ! Then I put it in the freezer !!! []

You’ll be surprised how less you use it, then even more surprised to know that it’s REALLY not needed as much as you think it is. []

This concept of not having it on you can work on…

[Read more]

Steph,

Well the real beauty of this is the land. The intension I went with was “the building can fall around my knees, for all I care. That will even save us having to demolish”

As I said, zoned for units. The plan was to knock down and build 3 or 4 or even maybe 5 units and hock it off at a big profit.

Another similar property (a little…[Read more]

quote:
Brilliant Victoria!! Congratulations on winning the Auction. Tell us about it the tension, the excitment etc etc. More details!
Steph.

Success is 1% inspiration and 99% perspiration.

Oh Steph,

It was totally nerve wracking.

My BF and I went. I didn’t think I could bid, so I put him in charge. The bank had given us $277K to spend,…[Read more]

Thanks for all of your suggestions everyone![:X]

Just a note to let you know that the bank gave us a deposit bond and get this….

We won the auction!!! []

Our first investment.[^]

Rock on![8D]

Victoria
[email protected]

Reason can answer questions, but imagination has to ask them. — Ralph Gerard

quote:
you could sell one of your children!

just kidding

I don’t have any, I have a cat… anyone interested? He’s a ginger male, 2 years old, housebroken, persian… []

quote:
why is it such a good deal???

try not to get emotionally involved!

Trust me, the numbers WORK

Hello,

I thought I heard him say $1 million between the 19 of them.

I could be wrong.

Victoria
[email protected]

Reason can answer questions, but imagination has to ask them. — Ralph Gerard

Hi all,

An option I am discussing with my lendor, is keeping the existing loan and getting a seperate loan for the extra, like a split loan…

This way there are no break costs, no pay out fees, no discharge costs, only a new establishment fee, $700ish

Currently I have a portion fixed, some variable and have applied for a third amount to be a…[Read more]

You know if I had $110K I would be buying more that one property…

I would use as little as I could to pay a deposit on one property, leave the rest in a CMT and spend time buying as many properties as I could.

I guess it depends where you are, and how much property values are, but I am in QLD where $200K buys something quite liveable, 10%…[Read more]

quote:
Joint Venture partners.

That sounds sweet… how do I find a Joint Venture Partner, other than asking around or holding a seminar![][^][]

Cheers again for all your help

Victoria
[email protected]

Reason can answer questions, but imagination has to ask them. — Ralph Gerard

quote:
-JV partners -they pay deposit

Hi Terry,

I understood the rest, but this one has me puzzled.

Thanks so much for your advice, as usual.

Cheers,

Victoria
[email protected]

Reason can answer questions, but imagination has to ask them. — Ralph Gerard

Alan,

I have never heard of them…

One thing I can suggest is to look at the Comparison rate. For those who have not heard of a comparison rate, here is the speal given on the suncorp site to explain it…

“From the 1st July 2003, changes to the Uniform Consumer Credit Code (the “UCCC”) requires all Lenders to provide Comparison Rate…[Read more]

Hi all,

I don’t have any at the moment. Not long ago I refinanced my PPOR to pay out all my little grommity debts (car, c/c etc.) and so now I am concetrating on Saving Saving Saving… Trying to built up that illusive regular savings pattern for the darn bank…

Lots of research in the mean time… plus I have drawn up my 5 year and 10 year…[Read more]

Hi Mel,

I live on the North Side of Brisbane. Not sure if I want to look at Bris, or some of the smaller satalite towns… Ipswich, Gympie…

Regards,
Victoria
[email protected]

Reason can answer questions,but imagination has to ask them. — Ralph Gerard