All Topics / Help Needed! / doing ok???

Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of Phil_2Phil_2
    Member
    @phil_2
    Join Date: 2004
    Post Count: 45

    Hi this is my first time here I’ve only been serious about property for less than a year, we have 1 -geared house that has risen about 40K since last March, now we’re building a second, our goal is to get enough equity to buy a business are we heading in the right direction?

    Profile photo of The DIY Dog WashThe DIY Dog Wash
    Member
    @the-diy-dog-wash
    Join Date: 2003
    Post Count: 696

    Hi Phil

    Welcome to the forum.

    We look forward to hearing your experience more often.

    Good luck with your plan.

    Cheers
    Leigh K[:D]

    Carve your own path and lead the way …

    Profile photo of richmondrichmond
    Participant
    @richmond
    Join Date: 2003
    Post Count: 831

    Hi Phil,

    Give a bit more info, and you’ll get some more details replies.

    Cheers
    r

    Profile photo of Phil_2Phil_2
    Member
    @phil_2
    Join Date: 2004
    Post Count: 45

    Ok Richmond
    3years ago we paid 104K for PPOR now worth 180K, In march we bought a 4×2 IP for 155k now worth 195K. now we’re building a 4×2 IP cost 220K finished aprox value 280k. So 665k total value and 465k of debt. And as I said I want to buy a business in the next couple of years does it look like I’m on the right path?
    Thanks

    Profile photo of melbearmelbear
    Member
    @melbear
    Join Date: 2003
    Post Count: 2,429

    Phil, it looks like you are doing well. You’ve added approx $180K to your bottom line since purchase of your PPOR 3 years ago.[^]

    If you like the strategy of building, it obviously seems to work for you, so maybe continue doing that. As for the business, well, I guess it depends how much it would cost, and therefore how much of a bank loan you could get against it, unless you wanted to pay cash.

    I guess if I were you I would be working out exactly what I needed to buy this business, and then work backwards from that to see what you need to achieve, and in how long.

    Cheers
    Mel

    Profile photo of Phil_2Phil_2
    Member
    @phil_2
    Join Date: 2004
    Post Count: 45

    Thanks Mel
    I have two issues in my head 1. our 2IPs are negatively geared and 2. the idea of selling anything and paying 25% CGT kinda bugs me.
    I want to build again but with out some major change I can’t afford to pay another dollar.

    Profile photo of melbearmelbear
    Member
    @melbear
    Join Date: 2003
    Post Count: 2,429

    Phil, there are ways to ‘minimise’ your CGT. Basically you sell when your income is going to be quite low. I think you can still prepay interest on your loans – this is one way to reduce income. Also if you’re sitting on any capital losses anywhere (shares for instance) now could be a good time to liquidate – even if you were to buy back in at the same price.

    Another thing I am looking at doing at the moment is to refinance and pull out some of my equity. I will use some of this to continue investing, but I will also keep some aside to pay my interest bills – so I don’t have to worry about where that’s coming from.

    You are on Interest Only loans? If not, there’s a way to save some $$$ from your monthly payments.

    Cheers
    Mel

    Profile photo of Phil_2Phil_2
    Member
    @phil_2
    Join Date: 2004
    Post Count: 45

    Thanks Mel
    How exactly do you pull out equity by refinancing?

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