Hi Hamish,
  Welcome aboard !!   Of course, family friends only want the best for you – but their answers might be coloured according to their own life experiences.  Not that their experiences should be dismissed, but it might help to delve deeper into "Why they think the way they do" and use the results to weigh up against information from…[Read more]

Hi Daniel,
  Wow, lots of work there !!   This introduction of yours leads me to ask you a bit more (I was confused…)

Quote:
i bought it 5 years ago for 76,000 i have refinanced and done a whole reno etc now i have tenets in there and the purchurse price i have worked out but geting my new valuation and deducting the current debt and the money…[Read more]

Hi Lea,
  

Quote:
However, why start again with new properties when we already have multiple between us that were purchased a couple decades ago?

   Don't lose sight of the fact that buying and selling any property costs you extra $$.   So, like many of the others, I'd say "take it easy" with selling them off right now – with the IP's being…[Read more]

Hi Pep,
  I hear where you are coming from.  I'm glad you decided to ask first (might've saved yourself some serious coin).   I can't help you with Perth as I have no knowledge of it…..

  …but your comments about paying down your PPOR had me thinking "Wait a minute…. !!"    Here's why:-

  To reduce your payments would mean re-applying for…[Read more]

Hi Catalyst,
   Wow, wow, and wow !!   NICE job !!   It looks like a new pin – thanks for sharing,

Benny

Hi Catalyst/Connolly,
  Thanks – and yes, it does make sense as venetians do look ugly once bent. 

  Re the verticals, do you prefer the wooden slat style, or the "bendy cloth" style?  I'd think the wooden ones would look ace, but maybe more expensive (and heavier…)  We typically just throw up curtains (easy to install, and often get good ones…[Read more]

Hi AT,
  I would think any easement would be showing on the Registered Plan for the property.  Note that I don't know this absolutely, but I do expect these should be showing.

  If you can find the Lot # (from a Rates Notice of the property you are buying), or get a Rates Notice from your parents.  Get their Lot #, then use Google to search the…[Read more]

Hi Connolly/Catalyst,

  You both mentioned "verticals".   Are you talking walls here, or are you fitting vertical blinds to windows?    If the latter, what is the idea with using vertical blinds – is it a cost saving or is there something else (e.g. a better look)?

  Just curious – I hadn't heard the term used before as an item of…[Read more]

Hi NHG,
  Might be good to mention a location (otherwise you might be shelling out for airfares….  )

Benny

Hi Bella,
  Sounds like a great idea to me.  Perhaps run a makeshift "passbook" which you update every 3 months with "Interest" as well as recording each addition of cash from them. Use separate passbooks – one for your Mum and Dad with their contributions, and another for your in-laws showing theirs.  Make it an "occasion" when visiting to have…[Read more]

Hi Kate,
   Below is what I "think" is right…  but I am not an adviser of any kind.  I can't help with question 1, so let's see what others say……

Quote:
Question Time:
2. Is there any deductions available for the buggered Air Conditioning unit that has now been removed?

  If you were already writing it down via an earlier Depreciation…[Read more]

Hi Niccy,
  It is quite likely that some of them will be dropping by this thread of yours later on….  
  Check out their signatures telling you their professions.   They will likely also be providing you with a direction in their replies.   Keep watch….   

Benny

Hi Niccy,
  It is the "purpose of the loan" that is important.  Your words seem to say that you have purchased Prop #2 as a place to live.  In that case, I would tend to agree that you wouldn't be able to claim the loan as for investment purposes.

  But do you HAVE TO move into Prop #2? 

  If you can stay where you are, then $100k of the $104k…[Read more]

Hi Scott,
  Thanks for taking the time to expand on that for me – I think I will give it a miss for now,

Regards,
Benny

Hi Ferdinand,
  It seems to me like you (and your wife) would be wise to sit down in front of someone like Richard to thrash out all of those aspects.  Even as a layman, I see a number of good possibilities for the two of you.  With a plan that is agreed to by both of you, you can do very well.

  Re the current PPOR becoming an IP later, that can…[Read more]

Hi Johnny,
  And welcome !!   It sounds like you are in good shape, despite a little "untangling" to be done.

  I'm sure if you choose to utilise one of the Mortgage Brokers on here, they will be on top of everything.  But, should you choose to go another way (via a Bank, or another Broker somewhere), do consider your current situation re your…[Read more]

Hi Tommy,

Quote:
My biggest question has and still is: where does the deposit for the next property come from? ……
This just seems a long way off my traditional understanding of purchasing 1 property a year.

The early days are always the hardest.  When starting, more than ever, buying property "at a discount" or buying where you can add…[Read more]

Hi Schplak,
 

Quote:
how would you choose between two $500,000 properties in an area with a median house price of $500,000, compared to four $250,000 properties in an area with a median house price of $250,000 (all other variables and potential gains / income being equal)?

  Purely to "help you get your head around it", if all other variables…[Read more]

Hi NI,
  The answer to your question comes from the "numbers" – at 95% LVR, there would need to be a really good Gross Rental Income to be +ve geared.  This is simply because of the high %age borrowed, thus making the loan a higher number.

  Yield comes from Income divided by costs.  Thus with a 95% loan, the Income needs to be higher to still…[Read more]

Hi NI,
  Jamie is right with this….

Quote:
You're only disadvantaged if you decide to rent the PPOR at some point – because you would have paid down a chunk of the principle (which would become tax deduticble when it becomes an IP).

… but again, it is something that isn't a major problem.  e.g. If you decide you want to move out of this…[Read more]