Hi Patrick,
Smart move to ask first – especially re Fixed Loans – they can bite, and bite hard, if you are not fully conversant with them.

If it were me, I would be staying Variable IO with Offset account, and pay down nothing off the loan. What you WOULD have paid can be saved in the Offset account, then removed to be Deposit/Costs on your…[Read more]

Hi Angela,

Minus expenses it would be neutrally geared.

Cool !! So it is paying for itself then.

The “where to next” is the question you appear to be asking. And that is quite a complex question, so not one to rush to answer. Have a think of what your major goals are – e.g. to be able to have partner retire within 10 years, or reduce…[Read more]

Hi Little1,

Congrats on starting out with IPs, and welcome to this place too. You’re in a good place !!

Gearing is all to do with leverage (think of the gears on a bike, or a manual car). If the Income is equal to Expenses, then it is neutrally geared. If Income is less than Expenses, then it is negatively geared. And Income greater than…[Read more]

Hi Adam,

Has anyone mentioned yet a less attractive but more realistic option? You purchase a negative cash flow property in a high growth area

We certainly have heard of it – look for articles or threads on “Negative Gearing”. It is a workable strategy for some, especially when combined with other +ve geared investments in parallel. It is…[Read more]

Hi exposed,
FYI, I don’t know Oscar, or CDC. All I do know is that you seem to be acting like Oscar has taken your lunch money or something. What IS your point?

And I, Benny, was just attempting to open the discussion on WHY Oscar might have chosen to sell for a lower price. And to show that his original projections don’t appear to be…[Read more]

Hi exposed,
Wow, you are one hard marker – and your choice of words in several places won’t do you any favours either. I’m with TraceyB and others who see a lot of value in what oc1 shares on here.

On a quick look-around (assuming you have the correct address – it does look like oc1’s photos, so let’s say you are right), I don’t see a lot…[Read more]

Hi AM2778,
I am not currently looking for more, but I have previously held IP’s in these Eastern suburbs. I find there are many things to like about most of these ‘burbs. First off, these appeared to have been significantly developed around 20 – 30 years ago. This means there are really good, settled areas with facilities long in place. i.e.…[Read more]

Hi Raist,
Good on you for adding your thoughts re Penalty Rates. I can certainly see your point of view there, and agree that this could/would have an effect on many workers. And yes, any change there would directly affect their discretionary income.

On the other side of the coin though, in this 24/7 world we live in, the payment of double…[Read more]

Hi Snowlionz,

Also, how is land tax calculated? Is it market value of the home minus the cost of replacement of the home or is it calculated differently?

I can only answer for Qld (NSW might be different) – up here, the Land Tax is paid as a percentage of the UCV applied to the land (that is the Unimproved Capital Value – the supposed value of…[Read more]

Hi PS,
As Jamie pointed out in another thread, we are an Australian based forum, and some of the answers given are specifically Australian-centric. However, the comments may hold some clues for you.

Based on the questions, you are obviously quite new to the role. I’d be suggesting you find someone else in your area who is alrady doing it…[Read more]

Hi Chris,
THank you for providing that ‘blow by blow” solution to your posted question. JUst tried it for myself, and yep, works beautifully. Well done,

Benny

Hi Yuley,
There have been changes made recently that make things better than before. Previously, we could go back or forward just one page at a time, or to first or last page.

The recent change now allows us to move forward or backward up to 4 pages at a time, as well as going to first or last page. So, a big improvement over “what was!”

Benny

Hi Ronnie,

So using the same example if I was to put a 20% deposit on a $600,000 property ($120,000) does that mean I have instantly a equity of $120,000 and be able to use it to invest in another property?

You are sort of correct – but wait, there’s more….. :p

To be able to use ALL of that Equity, you would need 100% loan AND extra…[Read more]

Hi Deza,
It can drive you nuts – but don’t let it. First off, I’d say to check what you can of their words (e.g. call, or have a friend call, asking questions about “availability of houses for rent” – get as much data as possible, even invite them to post you stuff). What I am thinking is to determine the rental vacancy rate – how many homes…[Read more]

Hi postup,

I’d like to ask what your due diligence involves actually – is that history on the property, depreciation schedule, flood reports, pest inspections, what else?

Those items you list are a good start. Due diligence is all about finding out as much as possible (especially the stuff NOT covered on paper in a contract). So due dil…[Read more]

Hi bla,
Sounds like a great start – and, in addition to the other worthy replies, have you had a trawl through this thread?

https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/#post-4697977

It may be one you have seen earlier. I like it because it is not that old – it shows how a young bloke had worked…[Read more]

Hi Glen,
If chasing +ve cashflow, this one isn’t it, surely?

Currently renting for $455
Body Corp is $1500 per quarter
Rates $250 per quarter
Water $200 per quarter

Even without Insurance, Maintenance and any RE fees, the fees shown above are costing $150 a week !! *Eeeekkk!!* That’s one helluva impost right there. Not looking like being…[Read more]

This has been the loose advice from a few accounting type friends, who believe if you primarily operate as a developer, then you do not pay CGT. I will pay, however, income tax, of which a Company is capped at 30%.

Hi JimBo,
That is how I believe it works too – but then, I am NOT an adviser of any sort, so this is truly just an opinion.

Benny

Hi Richard,
Would you expand a little on this please :-

Wouldn’t be buying in Morayfield in a month of Sundays.

Care to share?

Benny

Hi Jamie,
Personally – I prefer land. You can do more with it and don’t have to deal/pay for pest body corp fees.

WHen I first read that, I thought “Why you were ONLY buying land?” But I think in hindsight you were referring to buying a house (on its own land) over a unit, yes? (My choice too, BTW).

Benny