Forum Replies Created
Hi Steve,
I agree, too, with Paul and Sonja – I can’t detect what’s read and what’s unread.
But in thinking about font size (too small) I suddenly realised that I’m not using 10cms of width on my monitor. Is there a way for me to set the forum to display 1280 x 768 (or whatever are the correct numbers?) I don’t see this, and, if I could, it would probably solve the “small font” issue for me.
The new forum seems to have a brighter look to it – I like that.
Thanks for your work anyway – changes can become challenges, but we’re equal to ’em all, aren’t we
Benny
I’m happy to second Ben Poulson – always done me well,
Benny
Hi GPS,
I would not contemplate a CBD apartment – the major reason being that (from what I’ve learned) 50% of CBD apartments are purchased by International buyers. As such, they are shackled by the FIRB guidelines – in short, International Investors may ONLY purchase NEW properties.
Thinking that through, as soon as an International Investor wants to sell, they are then selling into a market that now DOES NOT INCLUDE any other International Investors. Or, putting it another way, the buyers have immediately shrunk by 50% !!!!!!
So why would I want to buy in a market that can shrink by 50% at the drop of a hat?
Happy to learn if others have alternative viewpoints,
Benny
Hi Milnev,
Derek was saying this
If you do rent out your PPOR then you will be able to claim all allowable costs associated with this property as deductions. BUT temper this thought with the longer term impact of capital gains tax that may come into play.But as far as I know, if you DON’T move to another PPOR – i.e. you rent yourself – then CGT won’t be payable until your old PPOR has been rented for 6 YEARS. After that, the rules change. But, if this helps you out, then check it out, and go for it if it helps you.
Benny
I am 16 years old (17 soon) and want to start investing when I turn 18.Hi Diggo,
Well, GOOD ON YOU !!!! It is great to hear of one so young setting themselves up in such a good way. You deserve to do well, and I’m sure you will. Go, you good thing…
Benny
Hi Calvin,
We learn a lot from our parents, eh? And not always the way we expect – hope they’re OK anyway.
They were going to do it in partnership with some friends who pulled out; and even-though my parents had the money to BUY IT OUTRIGHT, they let it go………..What can you do? This has become one of the driving forces for me now.
Benny
Hi Geoff,
It simply means “by quarter” – so if they are talking upper quartile, they are referring to the top 25%
Benny
Hi Audrey,
Not sure I’ve got this right – but it sounds like you are opting for a $15k loss to prevent paying $6k per annum. Is this close enough?
From where I sit, if this is a good Capital Growth area, I’d be more inclined to hold it but look for another +ve gearer to offset it. But then, I’m more a “Capital Growth” proponent than “positive gearer” – so do take that into account.
Can’t see the sense in paying $15k to save $6k pa. Especially as only 4% growth will more than cover your loss – the only question then becomes “how long until 4% growth happens again?”
You mentioned a town – is no chance of higher rents from Uni students, or providing furnished accom. for visitors, or B-n-B, or Corporate accom, or “something else”? Rent out the garage if the tenants don’t use it?
Benny
PS Am I close with my figures?
Hi KT,
Brady has provided a suggestion that might work but there may be other sticking points. One I’ve read about is that a lender might give you a Personal Loan for a holiday, or a carport, but not as a deposit on a property. Still it seems it can be done. But then you need to approach another lender and now you have a personal loan that could muck up the DSR.I suppose I’m saying “go for it if you think it’s worthwhile, but be prepared for a few more bumps in the road.” If you’re prepared to put head down and the other up, you’ll make it happen.
Someone else here mentioned 100+% loans – might be a better way, though this will probably have a few road bumps of its own. Be prepared for this so that it doesn’t “get you down” and have you wanting to give up too soon. You’ll make it work if you want it badly enough.
Good luck, and let us know how you go
Benny
Hey Skippy,
Have you already done a “Propertyvalue” search on this one? (It’ll cost you $40)
Propertyvalue.com.au lets you enter an address, and tells you the sales in the last 10 or so years (of course, if it HASN’T sold in the last 10 years, then you’ve done your dough).
But if it HAS sold in that time, you now know how much was paid for it (could be useful). It also includes demographic data, and sales in close locality.
Benny
Just had to set the record straight
I believe it can not be used with the old dial up only with ADSL or BroadbandI have Google Earth working fine on Dial-up. And, yes, it’s the Free version,
Benny
Hey Pysch,
From your own words, I think you’ll be OK
the repayments i can handle ….You are on your way then – the tenant is helping you to purchase this IP. Just keep in mind that the Interest will reduce as you bring down the amount owing.
Did you have a complete month of Rent before the first mortgage payment? Are you receiving Tax deductions on a weekly basis to offset the cost (ITWV)? Are you buying with IO or P&I? All of these can have a marked effect on the final outcome. If P&I, it would normally take 75% of the term to pay down half of the mortgage owing. That’s how they work.
No matter, just go back to that quote of yours – “the repayments I can handle” – just keep on handling them. Maybe the Bank’s first payment was more than expected – they don’t always take the required amount in the first few weeks, then play “catch-up” with the first payment. If this is so, your later amounts will be less.
Congrats for taking the plunge though; if you need more info, then please provide a bit more of your situation. We may be able to help more,
BennySteve,
First off, I’m NOT a legal adviser so this is all opinion – fair enough?
As I understand it, if you set it up as Joint Tenants, the ownership will be 50/50 – but, on the death of one, the title goes to the surviving member (and this might not suit a couple of friends).
So, tenants in common might be preferable as I believe this might allow you (or your friend) to have their portion to be assigned to another party in the event of their (or your) death.
You said the right words though – seek legal knowledge over the whole deal. BTW, was the North Coast relating to Sydney, or Perth?
Benny
Funny how things go – I heard about “the GC corridor” when I moved into Logan 21 years ago. (Each generation of RE agents must have been schooled on the phrase)
Finally it MIGHT be coming to fruition. Certainly the GC highway is top quality (4 lanes each way, and smooth as a billiard table).
Whether or not this translates into “NOW is a good time to buy” is beyond me. It sounded good back then but 21 years is a long time….
Many “advisers” have been selling into the corridor over the years – how’s everyone doing?
My concern over all that time is the availability of land in and around that whole area. But now time has now passed, and maybe today things really are getting better.
The more land is sold, the less there is to sell. So, sooner or later, there WILL be a land shortage in the corridor – and then anyone holding an acre or 10 will make some serious dough.
Good luck with it all,
Benny
Hi Wylie,
I think philosophical is good !!!!
Anyway, I used to mentally kick myself when I thought about the money we “gave away”. It took a while to stop beating myself up about this and I am much more philosophical nowdaysNot sure if I was double guessing, or what – but our first IP was bought for $48k with rent of $150/week. Guess we didn’t know just how good things were (or how good they would get when interest rates dropped from 17%). Whatever, we sold it as it was costing us to keep it.
Today that same house would be worth $180k – rent probably $200/week.
In hindsight, would I have kept it? Absolutely!!! But then, you don’t know what you don’t know – and we didn’t know how good we had it.
As I said, though, it helps to be philosophical. The money that was released on sale helped to pay for education for our two sons. What’s that worth? And, today, the knowledge gained from such mistakes has helped us to grow our current portfolio – to our benefit.
Stay philosophical,
Benny
Hi Mini,
Onya, girl !!! You said it good. And what if they only need the credit card for 3 months – $250 to borrow $10k sounds pretty good to me,
Benny
Wayne,
No one (including Steve or his associates) asked me, told me, threatened me or intimidated me into writing this post.Care to share what DID lead you to this retraction? Like the others ahead of me, I am bemused, confused
Benny
Yasmina,
This is what I hear from the thread
1.You want the best financial result
2.You want to cut down your cost
3.You don’t want to work so hard.So, from your input, your PPOR is in a good area and it has lots of equity. It is too big for you.
Here is what I would look at doing –
KEEP the house, but rent it – this should bring in $450+ ($500?) per week to offset the P&I loan (and leave you some change – up to $200 per week?) Out of that, you pay rates, maintenance, Insurance, etc and still have something left. This extra amount can help to cover the rent you might need to pay elsewhere.Because it is now an investment, there are Tax deductions applicable too. Some $$ come back to you from that. And you can live away from it for up to 6 years and still resell later without paying CGT
I’d keep your IP (as long as it is in a good area) and let time work its magic.
Then you need to look for somewhere to live – and that is up to you. Will you live in a 2 bdr home somewhere? Will you live with friends? Will you rent a room, rather than a house? A unit? Buy a tent? I dunno – but you will.
If you sell your PPOR, it would release a lot of cash, and allow you to set things up to suit you. That could be useful too. But that is YOUR call. You know better than us just what it is you require.
Good luck with your decision
Benny
Gimme a Skyline any day.
First was a Co. car when I had a permanent job. The good bit was discovering that wife (who has had back problems forever) couldtake a 4 hour drive with NO probs – usually stiff and sore after 1 – 2 hours. So…..
When I became redundant (thanks, dudes – best thing ever !!!) and a contractor, bought wife a Skyline ’88 GXE, 2nd owner with 180k for $4000. I now have a 1990 (also 2nd owner) with 200k on it for $3000.
They go like cut cats, have the steer, air, and comfortable seats (eh, wife). Shame they discontinued the model.
The Jag (my desire) can come when we’re “financially free” – not quite there yet…
Benny
PS One owner cars are great – someone buys “their last new car” when they retire, then 15 – 20 years later, it’s on the market, well-kept, low Kms, and just waiting for the discerning buyer.
Hey Oshen, Dazzling,
How about cutting joytony a bit of slack here.
I checked the link and found the quote on the post was word for word with the link. ie. there was NOTHING left out of Daz’s post – so what the??
Joytony, relax, you’ve done it good !!! I can’t see any problem with what you’ve done here.
And Daz, Oshen, let’s not drive new posters away here for no good reason. Or am I missing something here? Keep in mind that I’m reading this as MOST other posters would read it (you might have some other angle that we are not aware of)
Benny
