Forum Replies Created
devo76, well put.
But as Linar says, you can always pass them onto your kids, so they have a head start into the buy and hold strategy and hopefully get to the positive return stage and continuous the growth, that us mums and dads have started up for them.
You need to start educating your kids when they are young, so you can be confident that your hard work will not be lost by kids that like to spend spend spend.
Terryw,
Thanks for reply and education.
I can understand what you are saying and understand the tax claim, but , boy it seems so dodgy to me. Basically, its saying, Hey I got this loan which I can't repay. So I'll borrow some more to pay the shortfall and claim it as a tax deduction??AnthonyJF
Agree with above.
New estates usually take a long time for house prices to rise over time, also usually located out away from rail and shops etc.
New house will generate more deductions over a longer period, but I think I would go for a near new home rather than get one built and have big hassles with building and never ending bills for things you just get for free ( not quite but you know ) with an established house.
My question is…. How can you claim the deductions on the LOC if it is not associated with the Investment?
The IL is for the house, so how can the LOC you build up be put against the house???
You can only claim the interest against the property that is getting rental.
I cannot get a loan for $400,000 against a $350,000 rental property??Am I missing something here??
chrislang,
Where is the house?
If its in Northern Australia then most houses have had some termite treatment ( or should have ). Something like one in three houses are or have been attacted by termites, thus its probably not a concern, especially if the pest inspection says no active termite infestation noted.If the house is in southern Australia then it still could be OK, is the house near trees or bush etc?
Maybe it could be worth another pest inspection by another company? Maybe the buyers could suggest the sellers could contribute to the costs? It would be hard to get out of the contract unless the pest inspection says that termite damage has caused a major structural damage. They should talk to their solicitor about it urgently and see what they can do.
timaruboy,
Dont buy now. Wait. Keep reading, but don't belief all that crap in API.
API is a magazine mad up of one off articles of one off situations, it tries to give you the impression that you will get the same result as the people in the article.Yes, you can make a profit in property, but not at the moment. House prices are falling, unless you can get a baigan that is paying rent of over 7% or so, then don't buy. Wait a few months and note how prices are falling.
If you don't have a steady job that will see out the recession, then don't commit yourself, you could loose it all.
Don't Buy – Wait….
2009 will be bad for employment and houses above $300,000 will fall and fall over the year. Cheap houses will sell to first home buyers and they will live in them for 6 months then rent them out and move back home.Just look at any suburb on realestate.com or any other house site, I have been watching for months now as house prices fall and fall, anyone with half a brain can see them dropping.
A month or so previous I said wait it will not be long for bargains, but I was wrong, you need to wait a few more months or even a year or so before we get to the bottom.Mark76g
Most house builders are now going broke because it costs them more to build a house than they can sell them. Houses only a few years old are now much much cheaper then new houses, why would anyone buy a new house?
You may be lucky and get someone who cannot resist the look and feel of a brand new house ( or unit ) but most people will see the near new house down the road with all the extras and go for that.
Good Luck whatever you do.Interest only is the way to go in a rising market, but today is another story.
TerryW is probably correct still, you can go for interest only to start and work your way to P & I or just put some cash into the loan when you get a bonus like tax refund etc to slowly make an impact and bring down your loan over time, thus releasing cash for other investments.
mark76g
Good point, well put on paper ( sort of paper).
I think many people have thought of your idea and come to the same conclusion.
We get a lot of experts telling us how they made millions by doing the obvious, but , as you say , they are always in a rising market. They just happen to be in the right place at the right time and be very brave in what they did, but its not a do this and it works pattern. If they tried it today, they would go broke.Really, the best way is the slow and steady method of one property at a time, pay some of it off, get lots of positive gearing and onto the next, etc.
hbbehrendorff,
Unfortunately, I have to agree.
I have seen it coming for the last few years, and read about the point of no return regularly on finance pages and postings etc by economists, but , no one seems to listen.
I am prepared, what about the rest of you?
You can still make money, but not by negative gearing, you are doomed to fail. Forget about the rubbish that property always goes up in value. Expect your house values to drop like a rock over the next year.
Focus06
Also, get 3 phase air conditioning if you can, its more efficient and cheaper to run.
When I lived in the tropics we had external horizontal aluminium blinds (maybe not called blinds I forget ). They were great for shading the windows. You see them on old highset houses in the tropics.
Agree with most of above, except I personally dont think the evaporative coolers work, but I have only used them when in Moree in NSW and maybe it was the high humidity that stopped it working?
hgwells,
What has storms got to do with landlords insurance?
Do you mean house insurance? If so try budgetdirect, they have saved me hundreds each year.pyramid,
Love it. Especially the bit on the end.
O those poor Americans. I wonder if it may be those poor Australians in 6 months?I can remember the old days of saving money in the bank and then paying interest to the ATO in advance for the next years interest etc.
I just lost interest in doing that.TerryW,
What year was that??wealth4life,
What no hits yet!!! hard to believe.By bottom I presume you mean the stock market?? or do you mean when will the Sydney or National house prices bottom?
Maybe you mean the superannuation bottom?
RR yes this is true. I heard of that one also.
They also ask the neighbours if you actually lived in the house and slept.
But this is rare, but has happened.
They know all the tricks, 6 months will go quickly, enjoy the freedom, it may do you good.TarikG
As TerryW suggests, its probably an agents game. Just advise them of your offer and say its open for one week and don't call the agent.
Unfortunately, you have had a bad experience, its very rare for this to happen. Also the price listed is not a fixed price , you look at it as can go down, but , it can go up, especially if two or more people are after it and have the wives liking the paint job in the laundry! Just a joke.
Don't give up on property just yet, give it time. Your early frustrations are common as you start out into property, but it fades with time and experience.
bespoke,
Hi, Yes the above is true to some extent.
As you point out the superannuation has lost 25% or so in the last 12 months. Maybe OK for him if he has 25 years to go, but not so good for the baby boomers just starting to retire. It's a crisis for them.Also Australian households have yet to be exposed to the global meltdown as yet – but we will get to it shortly, unemployment etc is on its way.
You have to think something BIG is happening around the world, what with 2 or 3 Trillion dollars being injected into the system in America thus putting them into debt even more. Now up to about 9% of GDP at last count, should be less the 2 or 3%. Future Americans are going to pay a large price for this debt.So I suppose we could go on , but just wait and hope that we in Australia can ride out the financial crisis as it unfolds, it takes many months for it to slowly eat up our surplus as China etc wind down.
