All Topics / Help Needed! / Need some help Please!!!

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  • Profile photo of JpcashflowJpcashflow
    Participant
    @jpcashflow
    Join Date: 2007
    Post Count: 575
    February 20, 2009 - 1:42 am

    Hi Every one,

    My name is Johann i am 24 year old from melbourne. I have two IP properties under my belt.
    IP 1) Loan Amount $149,000, Loan Repayment: 185.00 a week   Rent Income: 260 a week,
    I Purchased property at 185,000 and has been valued at 260,000 to 280,000
    I have had this property for 2 years.  

    IP 2) Loan Amount $268,000, Loan Repayment: 421.00 a week   Rent Income: 280 a week,
    I Purchased property at 285,000.
    I have had this property for 1 month.

    I dont have any other debts and i earn about 60k to 80k depending on sales "etc".
    a) Know what is the best way to keep all this information organised?
    b) IP 2 is a property i might move into in the next two years IP 1 is just an investment.
    – Should i try put as much money into IP2 as i will be moving into this later on?
    – With IP1 do i just let it pay off by it self? or even sell and use the capital for future invesments?

    I am very confused on where to put my money?

    thanks
    Johann

    Jpcashflow | JP Financial Group
    http://www.jpfinancialgroup.com.au
    Email Me | Phone Me

    Your first port of call in finance :)

    Profile photo of ducksterduckster
    Participant
    @duckster
    Join Date: 2004
    Post Count: 1,674
    February 20, 2009 - 9:15 am

    Property two as it is costing you money of $140 a week in cash flow .
    When you move into IP2  it you will have to find $421 a week, any interest will be no tax deductible when you move into it.

    Selling property one will incur capital gains tax on $80,000 to $100,000 being after 50% discount a sum of minimum of  $40,000 being added to your yearly income for tax.

    Property one is making you money !

    Profile photo of kum yin laukum yin lau
    Member
    @kum-yin-lau
    Join Date: 2006
    Post Count: 342
    February 20, 2009 - 9:39 am

    Hi, sounds quite simple. You've done really well with IP 1. Don't need to do anything – yet. Appears to me you're suffering the uncertainty after doing something.

    Have you looked into depreciation benefits? Throw in whitegoods & furniture & increased rental or even same rental with depreciation & -ve gearing will bring IP2 to a better position. The cashflow from IP1 balances the deficit from IP2

    I'm sure you can do the sums yourself & come to a decision that best fits your own needs.

    No need to be jittery 1 month after buying. If you like IP2 well enough to make it your home, save enough [an offset account is best] to balance repayment with what rental you're currently paying then your financial position is no different from before.

    This is what I always thought was a good way. Buy IP for future PPOR, renovate/improve [claiming expenses/depreciation while it's a rental] then some years down the track [after milking depreciation & -ve gearing benefits], take it back, clean it up & live in it.

    Sounds simple, in practice maybe a bit harder.

    Good luck

    KY

    Profile photo of JpcashflowJpcashflow
    Participant
    @jpcashflow
    Join Date: 2007
    Post Count: 575
    February 21, 2009 - 4:29 am

    Thanks Guys…
    I think i might just pump as much cash into IP to and once i bring the loan down il re finance.
    Shoud be allright.

    thanks Guys
    Have a good weekend

    Jpcashflow | JP Financial Group
    http://www.jpfinancialgroup.com.au
    Email Me | Phone Me

    Your first port of call in finance :)

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