If rent is at 80%

What is likely for second provate business. Like say I start a hire company and make $10,000 per year and keep my main job. Is that $10,000 assessed similar to my main employee job or is it like so many business owners who struggle for loans.

Welcome here and yes its overwhelming. First of all, if you have a loan in both of your names that will probably be the biggest hurdle to overcome. I may be wrong, and i am happy to be corrected but this is probably going to slow you down. See what a broker says but in my experience it means you each own 50/50 but owe 100/100. Im hoping…[Read more]

I was thinking that if i cant subdivide i may still be allowed to make a large extension, but its all new ground so for ost intents and purposes its more like a new home. Would it likley be ok if the existing house were joined by an alfresco…[Read more]

So, we all know its better to rent than own generally, in that it affects our borrowing power, but what if i had…[Read more]

Nobody will be able to answer your question without shaping it better. Why sell? What is your goal? This kind of thing. Will you make money, will you lose less money? I think with some research you’ll be able to answer your question best, you will know what you want. Start here

http://www.realestate.com.au/neighbourhoods

Good luck.

Anyway, you’re fighting well, but after that credit card you owe tax money. They’ll let you pay in instalments but it won’t be free.

I know you want to invest but the skills you will gain paying off the debt…[Read more]

https://www.propertyinvesting.com/get-out-of-debt/

http://www.mrmoneymustache.com

Don’t be embarrassed.

To make it really really simple. Imagine you have a business.

Calderan properties. Think of your mortgage interest and other costs like insurance, management fees as your costs. Think of rent as your income. When your business is making money it’s positively geared. If you are not earning as much rent as…[Read more]

I often wonder how the loans work on this. I have yet to do it.

House A. $500,000 value $250,000 owed. $250,000 equity. I reuse $100,000 for property B deposit.
House B. $500,000 value $400,000 owed.

Am I paying interest in that $100,000 equity that I assume is a line of credit or similar? If so what’s my total net…[Read more]

Let’s say it’s $400,000 loan. You’ll be seen to be responsible for $400,000 with only $200,000 equity. Sounds to me like you’ll have more trouble getting future loans. You can get an agreement where the loan doesn’t show it but you both own…[Read more]

On this forum people will always say

“It depends. We need more detail.”

Your post will get this kind of response if any. That’s ok it’s your first go.

I don’t know SA so I can’t tell you much but why SA? You can invest anywhere you can afford. If it’s SA then what is it you want? Don’t say maximum growth and maximum rental income.…[Read more]

It seems you need plans to subdivide often. Obviously that’ll increase cost but why not just subdivide and use the equity gained, why build at all? Is the money better because building and deprecation add bonuses?

Any ideas?

When we get too many fat people in our society the government bans donuts for everyone, including the skinny people.

One thing I know about though is LVR.

This too has everything to do with risk. I’ve seen plenty of info from people saying this and that gives better returns. For me, I consider it from someone who has little to invest and must burrow. The ability to borrow so much…[Read more]

Happy new year very soon.

So I was wondering who has had experience with selling off some of their portfolio to pay down other loans.

How did it go for you?
How did you minimise tax?
Anyone have any real life sums of how it went?

I can see how it works, reducing liability, increasing cash flow after there has been growth but…[Read more]

You are too nice. You can just tell people to put that in their pipe and smoke it. You are where so many of us want to be.

Congratulations.

Is it profitable to buy the land, get your subdivisions and sell the plans to a developer? This would save me the huge finance.

Property I’m thinking is already $1m, the development would be another $2m. I can’t afford it. What would you recommend?

Ever had a…[Read more]

thought I’d put this one out there. For an investment loan, would you fix 100% of your loan? Why? Why not? Would you split and fix half? What’s your strategy?

My first ever self help money book was the millionaire next door. It taught me that people who look rich spend their money doing so much of the time.

Then the richest man in Babylon. Taught me no matter what, simple budgeting and saving something was an easy way to get ahead.

After some time I went to the…[Read more]

Using offset or redraw on an investment has its place but when they say not a good idea it’s back to the negative gearing theory that you save more money and get better roi by having a loan. So reducing that loan means your money isn’t working as hard for you.

Using offset for non deductible…[Read more]

Thanks,
WTR

If there was only 5% deposit, with LMI, then I paid it down to 10% but later redrew 5% would that be easy enough or would the draw incur LMI again because theres less than 20% equity?

Thanks. Merry Christmas.

In terms if mortgage repayments the banks will normally insist on what the best savings are using offsets etc.

Pretty sure in regards to tax so long as you calculate right it doesn’t matter, but it’d be hard to work…[Read more]

Consider socio economics. Holiday parks and caravan parks are not the same thing. There’s also a law somewhere I believe about not being allowed to refuse rights of accommodation. Have to confirm…[Read more]

Other things I’ve learnt are fixing a loan for 3 years reduces the bank’s buffer zone when…[Read more]

Are council likely to grant this as we have two…[Read more]

Save $100 at 5% for 30 years

Or delay 5 years

Save $100 for 5% for 25 years

Notice the difference?

It’s massive.

Now, knowing when you borrow money for a house that your $20,000 deposit can be $200,000 enter $200,000 for 30 years at 5%

Have I convinced…[Read more]