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]