Hi Kiwi,

To me, one of the major questions is this – are you wanting to buy a house in Newcastle to be your own home, or to be an Investment Property?  Depending on your answer would change what I would do.  Here’s why:-

1.  You have some good equity in the Whyalla place – if it is not selling, that could mean you are asking too high a price fo…[Read more]

Hi Propdir,

“Does this -22% still apply, and if so, what meaning can we put to it?”

I would think it does apply, and indicates a 22% loss.  I don’t know of any more complicated way to view it, but would be interested to hear from others on this too (especially if my answer is wrong, or incomplete).

Benny

we are taxed on the increase of the asset not on the total asset.

That’s a very good point Sinner.   Tony Robbins does say to “take out 30% tax at each stage” and I hadn’t questioned it further, as my calcs seemed to meet with his original answer.

Well considered on your part though – that was a good catch.

Benny

Hi Sinner,

I took a look at your workings and noted a couple of things:-

1.  After the second line, you were only removing 15% instead of 30%  and

2.  You seemed to double the original expected figure (1, 2, 4, 8, 16, 32, etc) instead of doubling WHAT REMAINED after the 30% tax was imposed in each year.

So to clarify, your first 4 years in th…[Read more]

Hi Philip Green,

Let’s say that 10 years ago, when you first purchased your home, interest rates were 5% on your 30-year fixed-rate mortgage. Now, in 2020, you can get a mortgage at an interest rate of 3.5%. Those one-and-a-half points can potentially knock hundreds of dollars a month off your payment, and even more off the total cost of f…

[Read more]

Hi again,

I hear you, and yes, your questions make sense – Steve mentions two phases – accumulation, then consolidation.  As I understand it, the accumulation phase is where you go “all out” to gain equity that you can then convert into Income down the track.  Steve makes the point that Commercial Properties give a better yield (Income) than r…[Read more]

Hi Big Lachie,

From your words, I suspect you’ve got to page 100 or so, but perhaps not much more yet?   I see where you read the part about “thirds” – it is between pages 92 and 100 – or thereabouts.  Did you spend time on the other two “thirds” though, and what each of them does for you?  ‘cos it is all about the whole picture.  Steve used the…[Read more]

Hey thanks Terry – appreciated !!

Benny

Hi Amelie,

Sounds like you may have a DSR concern rather than an Equity one.  i.e. that the Bank may not let you take on double the loan so you can pay out the other partner.   I’d think the way to find if there is any chance is to speak with a reputable Mortgage Broker.

There are several who post on here (their signatures tell their tale), or…[Read more]

Bump – click here for the first post:-

https://www.propertyinvesting.com/topic/5031421-to-all-mortgage-brokers-and-other-advisers-too/#post-5031421

In short, if you are an adviser with a signature, DO include in your sig the details of the cities you service, and log your details in here too so that other members wanting your services can find…[Read more]

Bump – click here for the first post:-

https://www.propertyinvesting.com/topic/5031421-to-all-mortgage-brokers-and-other-advisers-too/#post-5031421

Benny

Hi Alex,

That sounds like a healthy business you have there.

Owning a small bakery business in Vic. My weekly net profit $5000 pw for our whole family after all business and family expenses.

Since this produces so much active Income, what if you made it Passive by employing others to run it?  I don’t know how many wages you’d need to pay, but…[Read more]

It has been a while since last comments, but a chance comment on TV re Switzerland and its success with Covid19 has led me to share this info.

As the whole world waits with bated breath for a vaccine for Covid19, the Swiss seem to have stumbled onto something that is worth a second look, and maybe a third and fourth too.  You likely all know the…[Read more]

In answer to your question about “something bigger”, I guess that remains in the lap of the gods – any major world event will always impact on Aussie. But for me, I think the home situation (above) is far more relevant right now.

Well, another year has flown by, and what a year.  And how’s the Covid19 pandemic for a “major world event”?  Didn’t…[Read more]

Hi Alan,

As Steve has shown there are many options – even too many to mention right here perhaps, but do spend some time familiarising yourself with this site, and some good books on the subject.  Also did you check the link in the welcome message I sent you (the “Big Picture” one)?  It shares a host of different thoughts on the “How to” and “…[Read more]

Thanks Principal,

Good to hear that is an option that does work – appreciate you taking the time to let us know this,

Regards,

Hi Terry,

>>> Not sure how you get that idea from my posts.

Maybe this one confused somewhat?  Worked for me….  :p

If I take the 800k and put in the redraw then take it out to buy a new property, will the full 800k be deductible?

=  No

Hi Ben,

I would think timing might be of some importance….   By that, I mean it may be better to buy the IP and THEN go and buy the other investment with the remaining cash, rather than taking the cash out first, which might impact your borrowing for the IP.   e.g. you wouldn’t want to spend $25k then find your deposit needed to be $80k.  Firs…[Read more]

Hi Norman,

Just a thought – have you found a new property manager as yet?  If you have, is it possible they might be able to provide an easier path for you?  e.g. like switching banks – don’t deal with the bank you are leaving, deal with the bank you want to go to (they want your business, so may well handle the “shift” in large part for y…[Read more]