Forum Replies Created
How about a verbal agreement between you and your friends. And have them pay cash.
James
Thanks Mel. Will get everything moving tomorrow. Offer is James Georgis and/or nominees, so there shouldn’t be an issue. The bank though would be another. May ask to put back settlement to give me extra time.
James
Leonor,
I have done exactly the same thing.Rented out initial PPOR for $350 per week, and rented around the corner for $225.
Also changed loan to interest only. Although, I was going to make a profit, however, with a tax depreciation schedule, allowed me to negative gear.
I did it specifically because it placed me in a better position for future finance and reduced my outgoings overall.
James
From a purely selfish point of view, happy for the AUD to increase. Pushes inflation lower and increases pressure on RBA to not increase rates.
Last night was just the normal machinations of the FOREX market. I think there is still room for it to appreciate further.
James
I have just received Trust Magic by Dale Gatherum-Goss (and read it in one night!). It was an eye opener.
You’ll need to get it directly from http://www.gatherumgoss.com
James
Lisa72,
What is the loan amount. I have calculated for;Loan $36,000
P&I repayment 7.07%
Repayment $241.20
Yearly repayments $2,894.20I thought the rates amount is quite high for $45,000. Even the closing costs might be a touch high as well.
James
Wouldn’t it be better, if you were doing extensive renovations, to get a valuation before you do the renovations, so there are no surprises.
James
Rachel77,
Sorry to hear about your child, I wish you and your family the best for that.
One thing about this forum is that you will get some great ideas, insights and next steps about your situation.
Initial suggestion from me, would to be examine the option of renting out your current PPOR. At the same time, if you downgrade (hate that word) into something more modest (renting is what I am assuming), you get a benefit from that. (Your first IP without the need for stamp duty and other legal costs)
You may be able to negative gear your current PPOR, which may through a tax variation, reduce your husbands weekly tax bill.
These two factors should be able to assist you in saving a little more.
You may be able to re-value your PPOR and allow you a deposit for a +ve property.
If you keep renting in the longer term and don’t buy another PPOR, then your new IP (old PPOR) can still be sold without capital gains tax applicable within the next 6 years.
In your search for an accountant (previous post), I would think that trusts may be an alternative worth pursuing and finding out more.
James
MH,
It wasn’t for a specific case, but I have seen commentary from some people that redraws in some circumstances are better than refinancing.Understand the basic difference and that re-financing allows you to use capital growth in your property. But I was wondering if there were any other costs (aside the stamp duty, loan costs etc) or other implcations for the future that should be taken into account.(Maybe I am looking for something that is not there!!)
For myself, I would always seek to unlock increase in capital growth, so re-financing I would imagine be applicable to me.
James
Can only concur with Alexander2. I am a Purchasing Manager and I know how closely we analyse and scrutinise costs. The time spent in ensuring an optimal value proposition for the organisation.
I have caught myself many times, for personal expenses being on the flippant side…yes, I’ll buy this, yes I’ll take that. Now, I don’t think you can live a decent lifestyle if I was to adopt the same approach as I do at work for home expenses, but there is much to be learnt about applying it logically to your personal budget.
James
Rachel77,
This highlights the point that at the end of the day, even experts have their own blind spots, preferences and prejudices. That you need to know they are practising and advising in the areas that you want.James
Rachel77,
You of course don’t necessarily need to be in the same region as your accountant. E-mail, fax, phone all aid this. If you don’t end up getting someone you are happy with in your area, you can look at some of the accountants mentioned on this site.James
Alan Greenspan has mentioned in his comments recently, that the low interest rates in the US will seemingly be in place for a little while longer.
As an aside, the Bank of Canada have reduced their rates by 0.25%, to 2.25%.
James
Got sucked into that one then!!….
James
Deborah,
Let us know if and when it goes through. On the surface it does sound a little crazy. But, like you it sounds a pretty good offer.Just take into account capital gains tax, selling costs etc, which may take a big chunk out of your profit.
Maybe its time to re-value the property again.
Is there anyting happening to the land or developments around your property?
James
Julian,
What areas are you interested in purchasing in??James
Kay,
Don’t know how big these are, however, there are storage units available for rent in other residential apartment blocks in Southbank/South Melbourne and currently rent between $15-$30 per week. These are generally, wire mesh cages. (body corporate is almost negligable)
Similar for car parks in those buildings, but they are being sold for $35k!!
Don’t know about outgoings in this Lonsdale Street building and of course access may be an issue. ie 5 or 6 days a week between certain times. Of course, finding parking to out your goods may also be an issue.
James
Yes, he won the 5th out at Cranbourne last week, in a Group 2.
But he is also an accountant in Melbourne – http://www.gatherumgoss.com.au
James
Renting is generally cheaper than owning a property. (No paying for maintenance, building insurance, rates, land taxes etc and rent is generally less than an equivalent mortgage payment for the same property).
Should we (ie society) move on from the concept of home ownership to property invetsment ownership??
James
Well, you can’t leave us hanging on….what was in the little bag??
James
