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  • Profile photo of wonderlandwonderland
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    @wonderland
    Join Date: 2010
    Post Count: 22
    August 5, 2010 - 11:25 pm

    Thanks guys so much for the advice. I aim is to buy and hold long term. I would prefer that to buy and sell, too much tax and headaches.

    I am in the position to buy one now if i wanted to, but cant really spend as much money. I would like to preferably buy a house unit as apposed to apartments because I like the thought of land. I would assume that land would have great capital growth, and also i wouldnt have to pay for body corporate each year.

    When you say outter suburbs, where do you mean? I live in south eastern suburbs atm, are you saying that its not wise to buy around here. Should i buy closer to city fringe?

    Thanks for all your help?

    Profile photo of wonderlandwonderland
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    @wonderland
    Join Date: 2010
    Post Count: 22
    August 5, 2010 - 6:47 am

    Also, how can i find out what yield the property has? What percentage is considered 'good'?
    thanks.

    Profile photo of wonderlandwonderland
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    @wonderland
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    Post Count: 22
    August 5, 2010 - 6:45 am

    I heard that the market is steady at the moment. I'm just worried that if i buy now, and property starts to get cheaper later on in the year, i'll be kicking myself!

    Thanks for your advice.

    Profile photo of wonderlandwonderland
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    @wonderland
    Join Date: 2010
    Post Count: 22
    August 2, 2010 - 4:13 am

    Can someone recommend a property accountant in the south eastern suburbs of Melbourne?
    thanks,

    Profile photo of wonderlandwonderland
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    @wonderland
    Join Date: 2010
    Post Count: 22
    August 1, 2010 - 11:27 pm

    Hi Catalyst, thanks for your advice. I am looking to buy in Melbourne. Also, do you know any good books or websites to get more information on property investment? Or should I see a financial planner for information?

    cheers.

    Profile photo of wonderlandwonderland
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    @wonderland
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    Post Count: 22
    July 29, 2010 - 2:31 am

    Good question, I'm interested in the exact same thing!

    Profile photo of wonderlandwonderland
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    @wonderland
    Join Date: 2010
    Post Count: 22
    July 29, 2010 - 2:30 am

    Anyone got any suggestions of good books or which website is good for getting more knowledge of the property investment game?
    thanks

    Profile photo of wonderlandwonderland
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    @wonderland
    Join Date: 2010
    Post Count: 22
    July 28, 2010 - 4:23 am

    Hi guys, thank you so much for your advice.

    Daniel, where do you suggest that i could go to learn about these 'property investing, investor concepts and investing psychology'? Should I read some books? If so, which books do you recommend? I dont know where I should go to learn about all these investing knowhows. Or do you suggest that i seek a financial planner?

    I have heard that if you are on maternity leave, you are unable to do negative gearing. Do you know why that is, or can you give me any info to start my research?

    thanks again everyone.

    Profile photo of wonderlandwonderland
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    @wonderland
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    Post Count: 22
    July 23, 2010 - 1:23 am

    Sorry for this question as it may sound silly, but what is student accommodation? Are they apartments which are around unis? And why would it be harder to re-sell down the track, or why would it not appreciate well over time?

    thanks.

    Profile photo of wonderlandwonderland
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    @wonderland
    Join Date: 2010
    Post Count: 22
    July 23, 2010 - 12:55 am
    duckster wrote:
    You need to consider if Libra76 will be taking time off work for maternity needs as negative gearing affects family payments

    Alot of interesting info here, its going to take me a while to have it sink into my brain!
    This one particular statement has gotten me? My partner and I are thinking about buying our first IP end of this year. However, we are also looking at starting a family probably another year or two. I was wondering how negative gearing affects family payments? Does anyone know much about this, can someone please elaborate?!

    Many thanks

    Profile photo of wonderlandwonderland
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    @wonderland
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    Post Count: 22
    July 22, 2010 - 5:10 am

    Now i'm starting to understand it more.!!
    I was just wondering, would the bank say that because they are afraid that you might default on the other home loan?

    Profile photo of wonderlandwonderland
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    @wonderland
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    Post Count: 22
    July 22, 2010 - 5:04 am
    Terryw wrote:
    You would generally have all monies going into the offset and all repayments coming out of this.

    Hi Terry,
    Would this method save you much money? If the money goes in from rent, and out again for mortgage repayment, when does it actually offset your mortgage?
    thanks.

    Profile photo of wonderlandwonderland
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    @wonderland
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    July 22, 2010 - 4:37 am

    Thank you so much, i'm learning so much lately!!

    Terryw wrote:
    Your existing loan is separate, so that won't change.

    The LOC will have a limit of $120,000 but a balance of nil initially. When you take out $30,000 you will only pay interest on this amount. this would be loan 2 as described above.

    The other way is
    $320,000 existing loan secured by house.
    loan of 105% of the new purchase price secured by this property and your house. ie 2 securities for one loan = cross collateralised loan.

    So i guess with this cross collateralisd loan, does that mean that if you cant repay your mortgage, the bank can take away both huoses from you?

    Profile photo of wonderlandwonderland
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    @wonderland
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    July 22, 2010 - 3:05 am
    Terryw wrote:
    If you get this as a LOC then you only pay interest on the amount drawn dawn.

    When you put the 10% deposit down you take it from the LOC and borrow the rest from the same or another lender.

    Most people do it the other way, the crossing of securities, but this is not a good idea.

    Terry, I totally forgot about the fact that i was only allowed $120k, thanks for reminding me.
    When you said that i will only pay interest on the amount drawn down, what does that mean. Does that mean that my loan will go up from $320 + $30k (10% deposit) to $350k? Or will the interest of that 10% be part of my repayments for the second loan?

    Also, if you dont mind, can you please explain what the other method is? The crossing of securities?

    Thanks

    Profile photo of wonderlandwonderland
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    @wonderland
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    Post Count: 22
    July 22, 2010 - 1:48 am

    Thanks Terry for the advice. I'm still abit confused on the example of using your PPOR as security? What does it mean to use both the places as securites against each other?

    I understand the second part, and I think this is the way which my broker told me to go. Here is my situation. My PPOR is roughly valued at $550k, i have a loan of $320k, that is an equity of $230k. If i buy an IP for $300k, i was going to use the $230k equity to use as deposit. My broker told me that we can use Line of credit, where we only draw out what we need for the deposit. Say i put a 10% deposit, i would draw out $30k + $15k (stamp duty) from the $230k equity. Then borrow 90% LVR + LMI to finance the IP. Is that what most people do? Did i explain that right?

    Thanks.

    Profile photo of wonderlandwonderland
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    @wonderland
    Join Date: 2010
    Post Count: 22
    July 22, 2010 - 1:22 am

    Sorry if this sounds noobish (which i am!), but what does it mean when a property is secured by other properties? I've got a PPOR atm but looking to buy an IP and using the equity in my PPOR to finance the purchase of the IP. Any info/advise would help. Sorry to hijack the thread!

    Thanks.

    Profile photo of wonderlandwonderland
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    @wonderland
    Join Date: 2010
    Post Count: 22
    July 20, 2010 - 1:27 am

    Are buyers agent fees only claimable when you sell your IP?
    So if you plan on keeping your IP, you'll never see any of that money back?

    Profile photo of wonderlandwonderland
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    @wonderland
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    Post Count: 22
    July 18, 2010 - 11:28 pm

    Thanks Evolve for your advice.
    When my mortgage broker told me that i could afford an IP, we were really excited. But as you said, she's probably just wanting the commission from my loan. So that's why i'm trying to read and understand this forum so that i am better aware of how it all works before I jump into anything.
    cheers!

    Profile photo of wonderlandwonderland
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    @wonderland
    Join Date: 2010
    Post Count: 22
    July 16, 2010 - 6:36 am

    Thanks Terry. I think I will stick to my original plan and just buy our IP under our names. Makes it nice and simple!
    Cheers.

    Profile photo of wonderlandwonderland
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    @wonderland
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    Post Count: 22
    July 16, 2010 - 5:35 am

    Thanks Terry for your reply.

    To answer your question, its just myself and my husband:
    -We would like to buy in Vic (melb)
    -No risk of litigation whatsoever!
    -We currently have a joint income of around $120k
    -when you say 'family income' do you ask whether i'm from a rich family? if so, then definitely not haha

    -no kids yet, but will start in another 2 years

    -we will most likely negative gear the property

    I hope those answer helps my case. I am starting to think that i wouldnt need a trust as my situation is so basic.

    thanks.

Viewing 20 posts - 1 through 20 (of 20 total)