Hi Adrian,
I’m not an accountant, so do check my thoughts with the right person – but here is what I believe to be true.

Purchase Costs are allowed to be claimed over a 5 year period – so, not as a lump sum. If you were to sell again in the future, any unclaimed amounts remaining can be cleared at that time. I think Building and Pest would…[Read more]

Hi Claudio,
Good on you for asking the questions first – smart move !! You have already received some invaluable knowledge from several qualified members, each offering good reason to question this loan and where it may lead.

This is a very important decision for me and my family and I am a bit scared to take the wrong choice, I hope someone…

[Read more]

Hi Claudio,
And a big welcome to you – I see this is your first post.

On an loan of 450000$ means an interest of 60000$ in 30 years, 2000$ at year, and this is the reason why we have decided to go with them.

Just so you don’t get too confused later on, I wanted to point out that you are missing a zero on both of those amounts.
One year’s…[Read more]

Hi Wiwin,

Exit strategy for every purchased ip is kind of hard.

I think the real reason for the seminar to mention this is because we don’t automatically think of this when buying things – at least, not to any depth. e.g. when you buy a new handbag, do you naturally think “This will do me for just one year, then I will pass it on to St…[Read more]

Hi Pati,

This is just a scenario, they gave me. They will probably recommend 3 bed 2 bathroom house and land from Brisbane.

Ah, no wonder everything seems “above board”. It is designed to show the benefits of negative gearing. Actually FINDING a house that would meet those numbers would be the hard part. e.g. in Kingston (Logan City) new 2bdr…[Read more]

Hi Pati,
Welcome aboard, and a great suite of questions. I’ll have a go, then see what others can add (or to pick me up if I get it wrong… eeek! :p )

1) How can this scenario be positively geared.

Except for the Tax deductions, you would be losing ~$85/week in the first year, then $65 in year 2. They assume a rental increase of ~$25/week…[Read more]

Hi Cooper,
Simply scroll right down to the very bottom of this page and you should see this line :-

2001 – 2014 PropertyInvesting.com Pty Ltd, All Rights Reserved Terms & Conditions | Privacy Policy

Click on the links to read them,

Benny

Hi Knox,

Am I right in saying that using this method I’m basically freeing up more cash to purchase more IP’s?

Correct – the bank only asks that you pay Interest – nothing needs to be paid off the Principal – so you “pocket” the extra, putting it to work in your Offset account (which helps to REDUCE the Interest owing each month).

And you…[Read more]

Hi Knox,
Maybe an earlier reply re a “IO vs P&I” question might help. Note how, using IO and Offset, you may CHOOSE to pay at a P&I rate, while keeping your funds in Offset. The result can be similar, but your flexibility is WAY higher by going IO/Offset than by paying P&I.

Especially, see the last post in the thread where I foretell a…[Read more]

Another area that raises a lot of questions is around LMI (Lenders Mortgage Insurance) – how it can be used, when/where it should be used, and why it makes sense to “gear higher” in some situations.

I am looking around for articles and threads that go into detail on this…. If you see one that seems well-written and could be used here,…[Read more]

Another area that raises a lot of questions is around LMI (Lenders Mortgage Insurance) – how it can be used, when/where it should be used, and why it makes sense to “gear higher” in some situations.

I am looking around for articles and threads that go into detail on this…. If you see one that seems well-written and could be used here,…[Read more]

Another area that raises a lot of questions is around LMI (Lenders Mortgage Insurance) – how it can be used, when/where it should be used, and why it makes sense to “gear higher” in some situations.

I am looking around for articles and threads that go into detail on this…. If you see one that seems well-written and could be used here,…[Read more]

Hi Mitch,
Further to what Jamie has said, do read up here :-
https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/

Some great answers to many questions – including “IP first, or PPOR”, “IO vs P&I mortgages”, etc. Enjoy !!

Benny

Hi Aque,

My goal is to buy a PPOR and aim at a strategy I can have all my saving in PPOR

I’d suggest you add the extra bit at the end that keeps your options open :-

My goal is to buy a PPOR and aim at a strategy I can have all my saving in an Offset Account against my PPOR loan….

See, though you might buy a PPOR now, you MIGHT, in later…[Read more]

Hi Aque,
It would be helpful to understand a bit more of your situation before we attempt to show you “another way”. Would you add more info re these questions?

Is buying a PPOR your next priority, or are you talking of paying down the debt on an existing PPOR?

PS Tell us more about the title – “Contaminated deposit” – how is this so? I h…

[Read more]

Is the landlord keen on selling the property though?

It is on the market now, so I guess “Yes”. Maybe the vendor can leave in 10% ………. – it’s worth a try.

Thanks for the thought.
Benny

Hi Buddy,
Use the instructions shown in this post to put an image in your post ;-
https://www.propertyinvesting.com/topic/4995714-youngest-nobel-peace-prize-ever-winner-malala-yousafvsai/#post-4996543

Benny

Check out some on here – a Mortgage Broker will be able to identify your lending limits, and an experienced one will have all kinds of useful knowledge that may not be advice per se, but will no doubt be useful.

Some on here are certified to give advice too – pick someone who posts here regularly, whose posts appeal to you, and have a chat with…[Read more]

Hi JZ,

Is it a sound strategy to find the right property and negative gear it for 2-5 years before it becomes a CF+ property?

That can work too – but so much depends on your situation. Negative gearing in an area of good growth can see Equity growth that makes up for the loss over time. But it helps to have an Income that can “ride a few…[Read more]