Hi all,

Since I’ve had a few requests to provide a link (it’s NOT intuitively easy to find – but Google came thru) – here it is.

http://www.eaussie.com.au/aussie_valuer.htm

Would those that emailed please accept this as my response to them (saves a lot of typing [biggrin]

Benny

Hi Michael,

“The main benefit, however, is that your serviceability improves and you can then borrow even more funds.”

This sounds like Steve’s “Multiplication by Division” strategy. Must say, I tend to like this idea – on the surface at least. And if being able to buy more (better value) properties by selling one, it has to have merit. But…[Read more]

Hi myoung,

You’re not my long-lost flatmate, are you? His name was Maurice – is that you? [biggrin]

Anyway since that is unlikely, I just wanted to add these – homepriceguide.com.au (no rents, but medians and averages on a month to month basis.

Then, there’s the “Aussie” website which has an Aussie Valuer section. This give 5 years worth of…[Read more]

Hi Micasa,

A few back of the envelope calcs, and I think I’m seeing that IP 1 and 2 are not too -ve. So, if you were to change these to IO, you’d save around $150 per week, and push them a lot closer to neutral or +ve geared.

With Int rates as low as they are, the Principle repayment becomes a larger portion of the monthly repayment. Only…[Read more]

Hi Pepper,

If your finance is in place, and you can offer a clean contract (not too many conditions – or none), you can be quite successful with an outrageous price. At times like this, the vendors want to know “it’s sold” and will be more amenable to accept $310k (no conds. 14 day settle) rather than $330k, subject to everything, and 60 day…[Read more]

Hi Bennido,

Not many numbers posted, but I thought it’s worth looking at what can be done. For example:-

Bennido says “I did some quick calcs and I would need to pump about $100K into the investment loan before the apmt becomes +ve geared !”

From that, I assume you are negative around $7k per year (or $140 per week – close enough?) I figure,…[Read more]

One I loved was the “Intrepretations of Murphy’s Law” – it broke down that famous law into MANY “sub-laws”.

The only one I remembered from it was:-
“Any measurement is likely to be presented in the least usable measure – e.g. furlongs per fortnight”

Benny

Watch this space! SE QLD has a lot going for it – a rush hour that lasts 30 mins, lower taxes, room to grow, warmer weather, cheaper homes, etc.

And it plays second fiddle to Sydney and Melbourne in the property stakes, but hey – if you want to make money QUICKLY, keep SE QLD in mind in the next boom.

SEQ seems to languish while Syd and Mel…[Read more]

Hi Luckyone,

“I would like to make sure that before I put these extra costs into our existing mortgage, that they will all be tax deductable.”

Something that always confused me were the words “deductability of interest depends on the original purpose of the loan” (or words to that effect). It had me thinking that if you ever rented out your…[Read more]

Richard did say this – “The profit would enable us to almost eliminate any debt left on out PPOR (which is now rented out)”

That last phrase tells me that his PPOR debt IS deductible! So is it really useful to pay down that debt? No more than paying down any other IP?
Who can tell me? It’s an interesting question

Re the unit, I would…[Read more]

Rentmaster,

Thanks for posting those figures (I was quite shocked to see the P&I repayment – until I realised you were paying off the loan in 10 years).

Assume you have a 200,000 loan, for 10 years at 7%
For interest only…
per month pay 1166
total interest paid = 140,000
total payments = 340,000

P and I….
per month pay 2322
Total interest…[Read more]

For the good of the forum, now might be a good time to overcome your natural reluctance, Admin !!!

Benny

Del,

Following on from Stuart, what is the likelihood that it could jump another $5k – $10k in the next 6 months? I agree with his summation of CGT saved, but whatever you were buying would need to
a) make up the $6k lost in CGT – plus
b) make up any selling costs – plus
c) grow at least the same amount over the next 6 months as this one would…[Read more]

Sorry, crashy,

I’ve got to go with RodC on this one. It is pointless to use the same growth figures for +ve yield vs -ve yield property. Unless the -ve yield is just a “dog”, then the main reason for -ve yield is a corresponding +ve growth curve.

Now, if you were to use 10% yield with 5% growth, and compare it to 5% yield with 10% growth,…[Read more]

Fizman,

I assume you are paying P&I on your Home Loan – if so, then this virtually negates any plans of buying property until some other things change.

I have figured that you are paying around $1220 per month – and that is MORE than 30% of your gross wage. BUT, if you were able to borrow another $35k at Interest Only, (and use it to pay off…[Read more]

Mitch,

Just to help put things in perspective, any LOAN you are repaying is limiting what a bank will lend you. They tend to use a simple formula – i.e. you earn $40k – 30% goes in tax, 30% can be used for repaying loans, the other 40% is for LIVING !!!

So, keep in mind that only 30% can be used for loans – you are repaying for a car, HECS,…[Read more]

The building manager said they wouldn’t do anything about it because it is in my car space

Any chance you can manouevre it into common area (so it is not in YOUR car space?) Once a few tenants complain to the Body Corp about having to dodge around the wreck, they would have to do something, wouldn’t they?

My thinking here is that you are…[Read more]

Well done, Diamond Gus – my suggestion would be to consider purchasing properties that could be reno’ed, or are simply at a discount. Anything that could give Capital Growth instantly by throwing cash at it (an LOC is as good as cash isn’t it?)

Use the LOC to fund them completely, reno them, then refinance after they have been spruced up. Or,…[Read more]