Nice post, Shape !!!   

*applause*

Benny

Hi Muddle,
   … and a big welcome to you too.   Good to see a new member "jumping right in the deep end and posting"    

  I believe that in the Commercial Investment arena that is exactly how one determines value – all based on yield.   But hey, that also might fall over in a similar way to Shape's comment re "location" – I don't know.  The…[Read more]

Hi smartcube,
  I think Jamie has nailed it :-

Quote:
If there's a chance that the property may become an IP down the track then it might be best to pay a bit of LMI and borrow more from the bank.

  As Jamie also said, you would need to provide more detailed information to get any more detailed answers.  Re all of the other "ins and outs" of…[Read more]

Hi Dreaming,
  Can you provide more detail here?  e.g. did you buy it as an IP?  Was it ever your PPOR?   What is current value, and current mortgage?   etc.   

  Of course, if you ARE one of Jamie's clients, you probably have all of this at your fingertips.   And anyway, Jamie may well have already answered a lot of what I was thinking.  

  My…[Read more]

Hi Tracy,
  Welcome to another new member.  And "Well done!!" to you and your family for setting yourselves up so well.   Approach IP investing slowly and thoughtfully, and i have no doubt you will do well. 

  I mentioned in another post somewhere that I spent almost a year – reading books, going to (usually free) seminars, meeting with others,…[Read more]

Hi Draytone,

Quote:
I was under the impression that even if I do rent the property out for more than 6 years, pushing me out of the CGT exemption category, that a CGT event won't happen until if and when I sell the property?

  As Jamie said, you are quite correct.  However, what WOULD change after 6 years is the CGT-exempt status.   i.e. this…[Read more]

Hi Rob,
  Well done – you and your family sound like you are in great shape, and your "trawling" on here has obviously paid off.   Your ideas sound pretty good to me. 

  The only extra thought I had was "Do you think you might return to this home at some time in the future?"   The answer to that will determine what else you need to do.  

  I am…[Read more]

Quote:
Am I doing it wrong?  Surely you guys look at this information when looking at the cashflow of  property.  It can take a negatively geared property into being a cash flow positive property with good depreciation can't it?

  Yes it can !!   Many would say though "Tax relief is more a bonus than a reason to buy" and would crunch the…[Read more]

Hi Patterson,
 

Quote:
Wow cash flow positive properties really must be hard to find.

   One of the points often overlooked is that a negative-geared property can give a +ve cashflow – for that very reason (depreciation, borrowing costs, etc leading to Tax Relief). 

   The other thing (again often overlooked) is that fluctuations of Interest…[Read more]

Hi Patterson,
  Well that second attempt was a lot more readable !!  Re "What have you missed", I can say that the "Outgoing with IO Mortgage" seems to have a +ve value, while the "Outgoing with Repayment Mortgage" has a -ve value.  Based on the figures, they should be be one or the other.  

  Also, I see Depreciation showing as $3071 per year -…[Read more]

Hi Patterson,
  Most RE agents can give you "an idea" based on the look of the place (e.g. "Looks like 80's style") or, if they have been in that area a while, will know when certain pockets were built.  

  As Freckle said, this kind of detail usually comes later.  

 Once you decide you want to "go for it", then your DD can include finding this…[Read more]

Hi Patterson,
  I clicked on your link and saw mostly green dots.   Most of the green confidence levels were up to +/- 10%.  In one case though, even with a green dot, it should a conf level of +/- 14%, so not quite so confident about their estimate with that one.   And there was one Red dot, with a conf level of +/- 23%…….

  Guessing, I…[Read more]

Hi Patterson,

Quote:
I think I'm right in saying that if the building is post 1985 I would be able to claim section 43 ( the building itself) so the value of schedule would be higher. /

  That is one to think about a bit.  As I recall, lots of books mentioned the properties between 85 and 86 were able to be depreciated over 25 years (at 4%)…[Read more]

Hi Shelby,
  Back about 20 years ago, Eagleby is where people with little money were sent when they couldn't afford Woodridge.  Prior to that, Woodridge was where they sent people with little money.   So, Eagleby didn't start well, and, unlike Woodridge, it doesn't have the infrastructure that Woodridge has (train, huge shopping centres, bus…[Read more]

Hi Prado,
   Sorry I can't help you as I don't know Victoria.   Could it be that you might need to look outside Sunbury itself – like major centres up to 20Km away?   Looking after your property shouldn't usually require daily intervention, so once a good Property Manager is found, they probably wouldn't need to visit more often than every 2 – 3…[Read more]

Hi KSJA,
  I just saw this :-
https://www.propertyinvesting.com/forums/help-needed/4349569#comment-297139

  Something like that could fill in the blanks re "How much was in Offset after 10 years, allowing for reduction in interest payments over that period."

Benny

Hi Qlds007,

Quote:
Doable but needs a rethink on strategy.

   Hmmm, yeah – we need to know more of the seller's situation.   I figured just by asking for VF it would show a bit re the seller :-

1.   The seller was good enough to grant an extension without cost – maybe they have reasons to WANT this sale to go ahead.  

2.   Whether VF was even…[Read more]

Hi Baibai,
    Truckloads of luck – I hope you are finding your way forward.   And welcome to the forum too.

    Just a thought out of left field – if the vendor was not needing ALL of the money right now, is it possible he might leave 20% in the deal as Vendor Finance?  This would mean a whole new look at things – but, if they are wanting to…[Read more]

Hi KSJA,
  Good on you for putting it out there !!   There have been several posts recently discussing this "Interest Only" side of things.   Probably because our Mums and Dads (or grandparents) were brought up that you "Pay cash for most things, and pay off as quickly as you can those large-ticket items like houses!"   Sound familiar?

  So many…[Read more]

Hi anc,
 

Quote:
In terms of what amount to put down as a deposit, i was thinking 100-120k, and the rest straight into the offset.

  Pay the minimum Deposit you can – you may wish to avoid LMI, in which case it would be 20% (or $64k) but do consider whether it might be better to pay LMI (in the early 80's it is not very expensive) to retain…[Read more]