“Once upon a time, bank interest rates were closely tied to, and tracked the RBA cash rate.”

So true, Jacqui. I watched (in horror) as the gap steadily widened after the GFC hit. What had hitherto been a 1.3% gap quickly became 2%+ Nice work if you can get it – become a Bank.

And, much like RE agent’s fees (where the 2.5% commission was once…[Read more]

Hi darkness,
I wouldn’t be too stressed, and would just go get a depreciation schedule anyway. As I recall, a QS will cover a lot more ground than a builder will anyway, and usually come up with a far more complete list of depreciable items. e.g. the builder might provide the cost of a stove, but he won’t be including the cost of the…[Read more]

Hi Vyaw,
Hehe, why would I tell you that you are investing wrong? Your story reminds me of the Mexican fisherman:-

http://www.wanttoknow.info/051230whatmattersinlife

Sure, you could try other stuff if you wanted to, but it seems to me you don’t need to, and you could just keep doing what you are good at until you choose not to. Well done.…[Read more]

Hi Kristy,
I used to buy API (Australian Property Investor) magazine monthly (about $10). Toward the back of each issue would be a data section – it would variously show Median value increases over 12 months, or rental value increases, etc. for ALL of Australia.

Check out your newsagent and the mag to see if they still do that.

Benny

wouldn’t my property value decrease due to age (10%), and the land goes up buy 60%/4. So my value in land still goes up.

True – but what if your land is only 1/20th of the total land size (you are in a block of flats with 20 units). Your land increase in $ terms is miniscule because you only own a tiny portion. Yet your unit drop of 10% is o…[Read more]

Hi VYAW,

A savvy/experienced investor told me i need to buy land (with houses on it) not units.

The reason they would have said that is because land appreciates while buildings devalue. e.g. If a property gains 50% in equity over x years, that likely reflects something like a 10% loss in building value, and a 60% gain in land value.

Hence,…[Read more]

With the Cash Rate currently at 2.0, I don’t see it going much lower – maybe just one more tick….

But then, I’d not want to see it crank up again too quickly. So, down 0.25 then back up a similar amount?

Voting for the status quo over 12 months. What say you?

Benny

I don’t see the rate going much lower – maybe just one more tick…. But then, I’d not want to see it crank up again too quickly.

Voting for the status quo for 12 months. What say you?

Benny

I don’t see the rate going much lower – maybe just one more tick…. But then, I’d not want to see it crank up again too quickly.

Voting for the status quo for 12 months. What say you?

Benny

Hi Mark,
Good on you – that last comment says it all really !!!

it was very difficult to say no but I just thought to myself “you usually take more than a day to buy a car” but sign away the equity in your house in one day I could not do.

Benny

Hi Kristy,
Maybe start by chatting with a Mortgage Broker. See, it is no good considering buying in inner Sydney if your finances don’t allow it. Better to get a good idea of how much you can spend. This will likely provide some limits as to “where to buy” right upfront. As well as that, just by answering questions the Broker asks will help…[Read more]

Hi Fiona,
Perhaps your nervousness comes from having skimmed over some posts like this one :-

https://www.propertyinvesting.com/topic/4405609-just-joined-members-alliance/page/2/#post-4661898

Read it through carefully, then see if your nervousness has abated, or if it has increased. Be guided by your gut.

Regards,
Benny

Hi Asou,

how can I get away from paying the massive capital gain tax?

Two ways that spring to mind are these:-
1. Wait 12 months before onselling (be sure you check which dates are important – I believe Contract Date applies, and NOT Settlement date…. but check that). In so doing, you HALVE the CGT owing – well, really, you HALVE the amount…[Read more]

Hi Desmo,

The interest payment would have effectively gone up by the reduction of funds in the off set. Is this allowed.

Your words sound to me like you are doing things absolutely correctly. An Offset account has your spare $$ sitting in it, and, being your money (Tax paid, etc) may be used for any purpose at all. The removal of those funds…[Read more]

Hi Melissa,

A good question, and one oft-asked – “Do we invest before buying a PPOR (own home)?” Click on the link below, then check out the third post in that thread. It takes you by the hand and shows you the answer. Of course, it may not be the WHOLE answer, as it is written as though “financial reasons” are all that exist.…[Read more]

Hi Benny,
Great name you have there !! ;) You sound like a younger person just wanting to find out about property investing, so let me point you to a thread that will answer a lot of questions you don’t even know you have (including the one re “do I buy my own home first, or an investment?”).…[Read more]

Hi Benny,
Great name you have there !! ;) You sound like a younger person just wanting to find out about property investing, so let me point you to a thread that will answer a lot of questions you don’t even know you have (including the one re “do I buy my own home first, or an investment?”).…[Read more]

Hi VYAW,

But it will obviously take longer to pay off the larger loan.

Hmm, if that is part of your plan, then you are likely right. But what if paying them off is NOT part of your plan? Have you given that option some thought?

e.g. Did your Mum and Dad pay off a $40,000 home over 30 years? What if they had also owned an investment…[Read more]