Hi Terry,

There is no need to move back in or even to have an intention to move back in.

Hmmmm, I’m not sure which part of my thoughts were suspect, Terry, but it was a bit of a muse re how the law might have come about. So, yeah, I could well be quite wrong – point taken.

Anyway, since your answer didn’t seem to answer Adam’s original…[Read more]

I think the answer lies in “other things” not yet mentioned. Like these :-

Are you still working and what date do you have set for retirement?
Do you enjoy living in the PPOR you currently have?
Is your plan to buy Growth properties, or Income? Or a mix of both? In the end, the “numbers” will have a lot to say!!
Expanding on Terry’s answer,…[Read more]

Hi Mike,

The yield ranges between 2.75-2.85% over the 10 year period after taking consideration of risk premiums and outgoings.

We usually work on Gross Yields when checking if a deal is possibly viable (it is a quick rule-of-thumb check). From your words, it appears you may be talking a Nett Yield of <3% So it may not be as bad as it…[Read more]

Hi Adam,
That is a great question !!

Question: How long is an “acceptable period of time” so that my property remains my PPOR when I re-rent it out?

I believe the 6-year rule was brought in to assist where (for example) someone is transferred interstate or overseas, but plans to come back to their home down the track. Given that was the…[Read more]

Hi Brett,
When working out if a H&L sales outfit is “good or bad”, the main thing to know is the values in the area in which they are selling.

So many of the “bad dude marketeers” will be selling in an area foreign to YOU (e.g. they would fly interstate people up to the Gold Coast FOR FREE). Without knowing the “local values”, you could be…[Read more]

Hi Alex,

My hunch however is that we won’t be able to push through the DA and associated paperwork if the title is still in the vendor’s name? Can we get some opinions on this please?

I have heard “There are ways” – these might include taking the vendor into the deal as a JV partner.

Or purchase an option from the vendor with a long eno…[Read more]

Hi Mark,
Welcome aboard !! You have started well with IP’s to have two already. I find it a bit hard to say whether one way is better than another as I don’t know the areas, the rent returns, whether one or both are negative geared, etc.

I’m getting married next year and looking for a PPOR. We don’t wish to live in either IP.

Based on…[Read more]

jmsrachel asked (in another thread)

Steve / admin – Don’t get upset I tried for hours working out how to start a new thread with photos. Ended up pulling my hair out.

Since that comment supports this thread, I wanted to put it here to add to the count !!

Benny

Originating post is htt…[Read more]

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