hi all

well this post has moved on since my contribution days ago.
one thing for sure is there is no need to lift rates by .5%.
Bill sorry for causing you confusion, i can feel the stress my response caused you.
i actually asked my wife if she understood my post and she did, so i assumed you guys would. Especially with your financial background. Bill it is possible to increase the mortagage by simply refinancing the property, getting approval for the extra cash and then putting the money straight back into the loan and then redraw the money if needed, (no not off set account i didn’t even mention that, you did). what i’m suggesting is almost the same as a LOC except a lot lot cheaper. melbear understands fully what i am trying to say. Mel clearly stated LOC can be very expensive and a big financial risk. there is a lot of hype about them, it is clever techniques to sell the product.
Even some people selling them believe the story of the wonders of LOC’s. i have a LOC but got into it with no application fees and use it carefully and sensibly. Bill if you are still struggling to understand this i am more than happy to give an example how this stategy will save you and others money.
alf get a second opinion on the loc you are being encouraged to go for, i can put you in touch with a bank who will give you a full 1% off the interest rate of a LOC, no establishment fees, no monthly account fees, small discharge fees, and a very small redraw charge, if that helps
regards westan

hi riffraff
Long term a property 6km from Brisbane city has to appreciate in value. i wouldn’t sell especially if this is your only IP., oh yer thats right it’s only hypothetical. Refinance and then you can put the money back into the loan so you are not paying interest on it. only draw down on the cash if you find a great deal. In regard to investing don’t spend heaps on courses, as books cover a lot of the info so read a lot.
the idea of renovations that will increase the rent is also a good one but be careful to make sure you are getting a good return on your money.
westan

hi arty and Muppet

wouldn’t it be a fantastic world if everyone was honest. i know i’m a dreamer to think this. we can’t control what others do but we do have a choice on what we do. so lets make a differnce in what we do. we had a stove installed ina rental property and the local retravision who had been incredibly slow in suppling it, then they didn’t send us a bill for it. after six weeks my wife decided to go in and pay the bill. she could have got away without paying it but good on her she did the right thing. lets try honesty on all occasions, guess what its catchy.
westan

thanks C2
i agree totally.
i would like to add that while i got for high returning properties this is just one factor in the whole decision to buy.
westan

hi all

normally with a neg. Geared prop. it would be best to go for the best tax deductions if the plan is to hold long term? therefore you would put the property in the highest income earner.
as you both earn the same amount, as Melbear said, it sounds like it would be best in your name as the cash pos properties will raise your income above your wife’s. i agree with Melbear to consider trusts.
westan

hi all

leigh
i got a great laugh outa that link
thanks westan

sorry Simon i was writing while you were posting so i didn’t see your previous post.

i agree with your point that you can put heaps of your own cash in to make a neg. geared property turn cash positive (good point)[]

i was writing those comments about Yeild to help others who aren’t as familiar as you are[]
bye westan

hi simon

to a certain degree you are right but the Yeild is a terrible indicator of a good deal. the yeild does not take into consideration such things as rates / body corporates etc. so sometimes a 7% yeild can be a better deal than a 10% yeild. the best way to see if the deal is good is to look at every single expense and do the sums properly, yeilds are only a quick guide in my opinion.
westan[]

good on you bill, a very interesting post. i agree with sweetie and love your “honesty” approach. its good to see that your years of property selling havn’t effected you adversly. i was involved in sales many years ago and sadly too often people are quick to sell their own integrity to make a dollar. the R/E idusrty is a shocker for lack of honesty and deserve the negative image they receive.
i also look forward to you next post
westan