any ideas?[blink]
I’d pay off my credit card, pay off the balance of the mortgage on my ppor then take a holiday with the missus thinking ‘yayyyyy we don’t have to stress about debts anymore’ haha [biggrin]
Id buy 2 small investment properties
I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how
Hi Kwaidan,
Look at the size of my non-deductible debt/s and clear as much/all of that as possible and then set up/increase line/s of credit and invest again.
Any left overs would be offset against one of the remaining IP loans to reduce monthly interest bills and/or explore the holiday (celebration) option too.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Guys,
honestly, i dont believe its a good time to invest into property at the moment, nor do i believe in paying down non deductible debt, the reason being is, if you can create the cashflow, that soon enough or eventually will pay off your non-deductible debt, then you in a better position, than some one tying there capital up into a non deductible debt, that does not produce income, like Derek suggested, if you do pay down non-deductible debt, i would then definetly set up some form of line of credit, to be able to redraw that money when needed or necessary quickly, other wise if your not sure, just put the money into a offset account, and park it there till you know.
personally for me, i would be parking the money into an offset account, or trading equities, (if you can find a bargain.. (penny for dollars – a property for dam good value), i would then perhaps try to make the deal happen)
Cheers,
sisI would buy a couple of properties, but hay thats me…
Or you could invest it with omeone whos doing RE deals (i.e. cashflow deals not capital gain deals).
Rgds.
Lucifer_auI would pay down PPOR loan and then set up a LOC, use this as deposits and buy 5 more $100,000 properties.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I’d fix up all the niggling little maintainance jobs and renovate my current IP’s… Get them revalued and refinance into a LOC then start hunting for more IP’s
But if you haven’t already got IP’s I’d Pay down my PPOR, tart it up and refinance into a LOC and still start hunting for IP’s.
Best of luck, Barry
Damn Terry you gazumped what i was going to write. Pay off 100k on PPOR then get loan for 100k for investing as deposits. Reason for this you get no tax advantage with debt on PPOR but if then used for investment deposits after clearing debt, interest is claimable as investment tax deduction.
All good all happy and tax man cannot argue on that one.
Reason for not paying of 80k on PPOR and using the 20k for deposit is that you still have 20k with no tax break on your home so pay it off first then go again immediately.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
Just a comment on the buying of 5 X 100k properties. One still has to be able to *service* those properties. You then have another 400k to service. I guess if they are CF+ properties, the rents pay them, so in my situation, they would have to be CF+ props.
It all depends on the author’s situation. If he/she owns his/her own home, then non-deductible debt means bugger-all.
As for me, in my situation, I would but one more property (oh, I love this new IP- wish I could have it!) and use 20k as deposit, and chuck the other 80k into my mortgage, which is vastly fat already. Then my mortgage would be even fatter, and even with the 100k, I’d be mortgaged out.
kay henry
Hey kay,
what book you wanna rite about?
I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how
No kidding, geo- stupid cliche. I’m gonna change it. Remember when Elle McPherson said she only ever read anything she wrote herself? I thought that was hilarious at the time
But let me change my words before I wax lyrical about great authors (ahhh, Elle- too funny!)kay henry
ok Kay
<DD, please don’t advertise specifics. You’ve been asked before in many of your posts. You can advertise your services in your signature- kay henry>
Smile and enjoy the roses.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
But let me change my words before I wax lyrical about great authors (ahhh, Elle- too funny!)You must be logged in to reply to this topic. If you don't have an account, you can register here.
