[BenJonesParticipant@benjonesJoin Date: 2003Post Count: 23]

September 19, 2005 - 1:39 am

Thanks for the replies.
M.H, I’ll speak to my accountant about the offset account when I get back to Oz in December.
Sounds good,
Ben.

[BenJonesParticipant@benjonesJoin Date: 2003Post Count: 23]

January 30, 2004 - 11:39 am

Thanks for the feedback.
I am also thinking about IO loans for the next couple of mortgages to increase the likelihood of cf+. Maybe even paying more than 20% deposit for IPs (if possible), using the LOC.
Any experience or advice with this?

[BenJonesParticipant@benjonesJoin Date: 2003Post Count: 23]

January 29, 2004 - 12:25 pm

Hi Georgisj,
Thanks for your comment there. You got in before me and answered my question re. the LOC being takien into account in future borrowing. All the more reason to be very disciplined with the LOC.

Question: Did you (or anyone reading this) apply for the maximum ammount for your LOC or did you go for less than you could have? Just want to get a feel for how it’s helped investors ie. the more the better vs keep it low.
I realise that it would depend on the need of the investor, but I’m looking to get 2 properties and I’m pretty sure the LOC ammount offered will be much more than I need for deposits etc.

[BenJonesParticipant@benjonesJoin Date: 2003Post Count: 23]

January 29, 2004 - 12:13 pm

Thanks Shushbar,

So am I right in assuming that all of the current equity will be tied up in the LOC if I was to apply for the maximum ammount? ie. Once the LOC is established the equity is then used up even though it’s not spent?

Probably an obvious question for a seasoned investor, but a complex enough one for me at this stage[?].

Comments welcome

[BenJonesParticipant@benjonesJoin Date: 2003Post Count: 23]

January 27, 2004 - 12:27 am

Ask the paint store for ‘mis-tints’ for your gutters or metal garage. This paint has been coloured for another customer and they decided not to but it for whatever reason. I got a 10lt tin of solargard for my guttering and they kept tinting it till it was the color I wanted and it cost less than 1/2 original price.

[BenJonesParticipant@benjonesJoin Date: 2003Post Count: 23]

January 25, 2004 - 2:12 pm

Start my own religion?

Or, turn it into a 2 bdrm cottage; combine the toilets into one bthrm, simple kitchen, bag the brickwork and stick in an easy care garden, put up a fence and clothesline, generally make it a nice place. Maybe a fireplace. The floors are already done.

[BenJonesParticipant@benjonesJoin Date: 2003Post Count: 23]

January 25, 2004 - 4:25 am

I’ve got landlords insurance with alianz (was colonial) and that covers everything (I’m pretty sure[?]) such as public liability, building and tenant damage etc. Must check to confirm now that you’ve bought the topic up.

[BenJonesParticipant@benjonesJoin Date: 2003Post Count: 23]

January 23, 2004 - 6:21 am

I’m in Sth Korea working as an English teacher. The deal is free rent, free return flight, not bad pay and low cost of living which = high saving potential. I seem to have a fair bit of time on my hands which allows me to spend it on the net as BB here is cheap and is the norm (no-one has modem connections) so I’m zipping all over the sites, less frustrating in that way but more frustrating because I’m not in Australia and can only do so much from here.

We are many years behind the States and Europe and having property today will make us the rich of tomorrow. Property prices here are not beyond the average person here compared to Europe etc. But its starting to go that way.
I totally agree. After spending a few years in England and Europe I’m guessing it’s just a matter of time before Australia follows the trend. We also seem to follow the US by 10 years or so in some trends, so maybe property is no different.
Thanks for your reply.

[BenJonesParticipant@benjonesJoin Date: 2003Post Count: 23]

January 21, 2004 - 4:48 am

I have a dual occy in Canberra and as such, am able to get significantly more rental return than if it was a normal 3 bdrm. Luckily for me the work was done before purchasing, such as: 2 driveways (one with carport and one with garage), 2 clotheslines, seperate electricity meters, 2 water heaters, phonelines, and most importantly it has divided backyard areas. The large section (2 bdrm) has the front yard and a courtyard area at the back, while the 1 bdrm has the garage and grassed area of the backyard. This maintains some privacy for both tenants. The only link between the 2 sections is via the 2 bdrm laundry door, but this is a very heavy door and is bolted on both sides.
As for problems, the only one that has come up in the last 2 years(according to the PM) is the gardening and who does what bit. Even though it has been explained to them by the PM it still causes some confusion (maybe selective hearing has a part to play).
I think dual occupancy properties are the way to go if you get the chance to buy one. Luckily mine can easily be converted back into a large 2 bdrm house with large 1 bdrm granny flat, or opened up into a 3 bdrm w ensuite, making it a possible PPOR in the future.
Good luck with what you decide to do.

[BenJonesParticipant@benjonesJoin Date: 2003Post Count: 23]

January 19, 2004 - 11:48 am

My property is a dual occupancy 2 bdrm + 1 bdrm, seperatley metered etc but all under the same roof. As I was renting out the 2 bdrm while I was in the 1 bdrm as my PPOR I was able to claim 70% on such things as land tax and rates. 70% was considered to be the ammount of the property being rented, going off the house plans. I’m not there atm (and probably won’t be for a while) so should be able to claim more for those things now.

[BenJonesParticipant@benjonesJoin Date: 2003Post Count: 23]

January 18, 2004 - 1:15 pm

Ben if you dont want the hassle of coming back to OZ ill send u my bank details and ill go buy a place hehe
Hey ta. I’ll keep that in mind[]

Time saving? Internet to look for the properties- should give you an idea of what youre after I spose
Yeah, doing plenty of that from here. I don’t seem to get many email replies from local REs when I enquire about particular properties thay have listed.

…but your PM should be able to get one of the agents in the company to do a valuation for you on your current property to give you an indication, but the bank will need to do their own valuation (which you have to pay for) anyway.
Did this with PM about 10 mths ago. I’m just not sure if the lender do this in my absence.

One of the mortgage brokers on here may be able to help you, Im sure that most of the correspondance could be done over the phone until you have to sign the loan application docs which could be posted to you to sign.. That way you can come back and buy knowing how much you have to spend, saves the disappointment aswell if you dont get finance approval!
This is my next move I think. Ideally I want to have all of my finance sorted before I get back as I;ll probably be time limited.

If you know the area now,- why not buy overseas? *shrugs*
Sth Korea is not open to foreign residential property investors unfortunately. A shame as there are some real deals here and a huge rental market, from what I have discovered.

Dunno if this helps but hey…
Thanks for your help.

Hey Ben, best bet is to contact one of our esteemed mortgage brokers on this here forum.

they should be able to cover all your questions re finance, borrowing, savings etc.
I’ve made a couple of general enquiries but now it’s time to get specific.

Thanks.

[BenJonesParticipant@benjonesJoin Date: 2003Post Count: 23]

January 1, 2004 - 5:18 am

Thanks to pisces 133 and Steve for your replies. pisces I’ve sent you an email, and I’ll chase up Stuart from Steve’s reply, then try to put the important points together in an answer on this thread as soon as I know.

Thanks and Happy New Year to all on this forum.

[BenJonesParticipant@benjonesJoin Date: 2003Post Count: 23]

December 21, 2003 - 10:43 am

Thanks for the help folks. A big WOW to the usefulness of this forum. Wish I’d found it sooner as I could have got shaking on a few things by now.

[BenJonesParticipant@benjonesJoin Date: 2003Post Count: 23]

December 21, 2003 - 10:06 am

1) When you purchased your investment?
2) How much you paid for it?
3) What structure is the investment (eg: buy and hold, vendor wrapping etc.)?
4) What is the weekly gross rent (income)?
5) What your net Cash Flow is?

1. Start of 2001.
2. $170,000.(valued recently @ $340,000)
3. Buy and hold.
4. $385
5. Not quite sure what you mean as I’m starting out here, but after all expenses around $2000-3000 p.a. in my pocket.