Forum Replies Created
Congratulations Andrew,
That would have been a great title! (Bad luck)[
].Steve, the book so far is GREAT, so easy to read, but I’m only up to chapter 4. I’m looking forward to spending some time today sitting next to the fire and get stuck into it!!
It’s a winner![
][]Del
Good idea Westan!!![
]….Not too early though!Talk to you soon,[
]Del & Will
Hi archiZEN,
Yes, 20% deposit plus costs from LOC.
80% stand alone separate loan – ALWAYS!!!!!
Don’t be concerned about the LOC running dry, as long as you leave a little there for an unexpected emergency. After all, that’s why you took it out. It is there to fund deposits.If you use variable loans for your IP’s, they are easy to refinance once you have built up some equity in them. From there, you can fund more IP’s.
Do not let the bank use your PPOR as security against the IP. Do not put your PPOR at risk any more than you have to.
You have been given good advice from Stuart and Regina.
PS.. Try a broker – much better than a bank![
]Regards,
Del & Will
Hi Mum,
Sorry for the delay in answering your question.
Yes, our LOC is mortgaged against our PPOR.
The bank (ANZ) offered this option to us when we applied for the line of credit.
Keep our separate home loan (stand alone) and have a seperate LOC to keep our accountant and the ATO happy.
It was quite simple to set up an entirley different loan (LOC) mortgaged against our PPOR.
eg…Value of property, say…$500,000
less current mortgage………$100,000
EQUITY……………………..$400,00080% OF EQUITY FOR LOC……$320,000
Hope this is clearer.
Del [
]Hi MJK and mum!
MJK – Yeah, Liberty will be making a killing on poor unsuspecting people.[
] But if it’s the only way you can do it, it’s the price you pay to get into the game. Hopefully after a while you can find other cheaper avenues for finance.Mum, (can I call you that)[?]
Yes, we do have a mortgage still[
] on our PPOR. Our LOC is seperated from that. (Two totally different loans), so that the interest doesn’t get to complicated. Our mortgage for our PPOR is P&I and we pay extra off it as much as we can. The LOC is of course IO, as it’s an overdraft.We also have a mortgage offset account, (against our PPOR home loan) which all our rents received get paid into. The offset acc builds up, reducing our home loan. Our repayments to our loans come out of that as well.
Works pretty well so far.[]
Hope I have answered all your questions OK. If not let me know, and I’ll have another go at it!Have a great day,[
]
DelAnother way to look at it:
We use 80% stand alone loans at around 6%
We use 20% deposit from line of credit 6%
We use 05% fees etc from line of credit 6%
TOTAL:105% FINANCEFor those with equity in their PPOR, this is the cheapest way by far to do it.[
]Regards,
DelHi Diamond, (and crew),
[
][][][][][][][][][]To insert a smiley face, simply click on the faces to the left of your message box. I mean when you are putting on a post, or replying to one. (If you haven’t noticed them there are four lines of them). [
]Also, if you hold your curson still on top of the smiley face, it gives an explanation of what the face is, i.e. sad,[
] angry,[!]Where ever your cursor is on the msg. screen, that’s where it will appear. The actual smiley face doesn’t appear until after you have posted your reply.
Does that make any sense[?][?][?][?][?][?][?]
Give it a try, it’s fun.See ya,
Del & WillHi Aussierogue,
Yes, we bought our first IP in Traralgon in about Feb this year. Cost us $80,000. We spent almost $8000 on doing a reno – new kitchen, new bathroom, new laundry, paint outside & inside, new downpipes & guttering. It come up great![
]The house still took 6 weeks to rent!![
] We had lots interested, but they cancelled out the day they were supposed to sign the lease, or other frustrating reasons. The house seemed like a lemon for a while.It’s now rented at $165 pw to what seems to be great tenants.
Personally, I’d steer clear of the valley for a while. I reckon there will be a few fire sales in the near future.
Too many investors – Not enough tenants!!!!!!However, the agent did appraise it after the renovation at about $120,000, so that was nice.
Del
Hi Neologism,
We have used Paul Bright at Armitage Downie, at Warragul (ph 03 5623 6322) for about 4 yrs. He’s a director there, and is VERY good. We would reccommed him highly.
He has cashflow pos properties also, and is very knowlegable about setting up trusts. He has recently set up ours.
It’s a large accounting firm, and if he can’t help with your query, someone else there will know.
Tell him Will & Del sent you…[
]Good luck,
Del
Hi Gavalynn,
I agree totally with Mini on this one. If I hadn’t first of all gone to Geoff Doidge & Paul Eslick’s seminar this year, I wouldn’t have found the web-link to propertyinvesting.com!!![
]Once I read this forum, and Steve’s newsletter, everything seemed to click into place. I straight away bought Property Secrets Revealed, and went out and immediately bought my first 3 properties (within 2 wks of eachother). I probably only did that because I was so green!!!!!![
]We did a reno on 2 of them, and with what I had learned at Geoff Doidge’s seminar, I put it into action. It probably saved us thousands, (more than the cost of his seminar & flights), by doing things to a plan & strict budget. We then signed up for the Aust. Property Investing Masters. As Mini says Steve gently pushes you on to make a start or to continue with your investing and not be one of the 99% who become seminar statistics.
We have done this, and I’m sure that without Steve’s gentle persuasion, we’d probably still be sitting here thinking about investing again “soon”.
Basically, I feel you’d get your best value for money with “Property Secrets Revealed”, and become a regular on this forum. It’s a great starting point, and then if you feel you still need a seminar to help you – why not???
Good luck,
Del
“The only failure is the failure to participate”.Hi Glauco,
I’m with AD on this one.
When you make the change, you’ll wonder why you hadn’t done it sooner!!
Stuart is a great place to start.
Good luck,
Del
** Some people wait for their number to be called, hoping for success some day.
Others develop a plan, take action and create the opportunity to build their own success plan.[]Thanks for that Dave,
You’re right. That’s a great one..[
]I think I will write that one down!!
I really believe the saying “if it feels right – do it!!! So many people procrastinate and go grey worrying what is going to happen if I make a mistake and buy the wrong one etc….[
]
They spend their life researching, instead of taking part.Life is a wonderful journey. Try new things…
Take part in it – don’t watch it pass you by.[]Have a great day,
Del
].
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]
] But if it’s the only way you can do it, it’s the price you pay to get into the game. Hopefully after a while you can find other cheaper avenues for finance.
] on our PPOR. Our LOC is seperated from that. (Two totally different loans), so that the interest doesn’t get to complicated. Our mortgage for our PPOR is P&I and we pay extra off it as much as we can. The LOC is of course IO, as it’s an overdraft.
]
