[blueheelerParticipant@blueheelerJoin Date: 2007Post Count: 45]

August 8, 2007 - 3:17 am

Colin Gowan wrote:

Since a trust is a separate entity and I cant use the negative gearing personally from a trust.

And the loss in a trust can be carried forward until there is a profit or I hope I have this right?Please some one tell me if I haven’t?Can a trust still benefit from a depreciation on a property held in a trust just as I already use the 2.5% pa depreciation to help offset the negative gearing loss from a property not held in a trust?

Hello, u can use a "property investment trust" where ur able to use your negative gearing to capitalise on your marginal income tax. This trust is unique and new. Hope this helps?

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August 3, 2007 - 6:29 am

Quote me if I'm wrong about the difference between shares and property, The difference are, risk and value. You can add value to property with a paint job or reno, but u cant with shares. You have control over your property, someone else has
control with your shares. What happens when your shares crash? The word "Crash" is, self explanatory. 

Just my thoughts between the two.

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August 1, 2007 - 2:07 am

Great comments from Vesson. Hang in there and dont be too disheartened,  be patient and let your properties  work for u, not u work for the properties.

Dont limit yourself on other peoples wisdom or vision 'Banks,Morgage Brokers', keep looking for the right people with the right attitude.  

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July 31, 2007 - 10:07 pm

Bez wrote:

Hey guys, I have been paying off my first Investment property for 4 months now. Iv only been paying the minimum amount on the loan as iv had other things to buy and just havent had the money..
My question is, where do I go from here ?
Do I put as much money as I can spare into paying this one off or do I start saving for the next one ?
It is negitave geared but not by much, is there any tricks to make it possitive geared other than increassing the rent ?

Details on my property are :-
2Bedroom unit
Purchase price – $125,000
Loan remaining – $114,000
Rent income – $310 a fortnight
Loan repayments – $403 a fortnight

Any advice on helping me get the most out of this property would be greatly appriciated

Cheers…

Hi Bez, just on about your PI, i dont think you can claim negative gearing for this. If its IP then you can claim everything available……….depreciation on building and fixture/fittings-2.5% after 1987, negative gearing, rental income, look for an accountant whose experience in property investments. Check your capital growth by re-valueing your property. A great comment made by Elka is beneficial for you………………..100% offset account will account for your interest.

Property Price                             100% Offset Account
$125k

Morgage Loan Remaining             11k Interest Free
$114k

[blueheelerParticipant@blueheelerJoin Date: 2007Post Count: 45]

July 31, 2007 - 9:36 pm

Hi there, congrats to your awesome portfolio. Just a short note on 'Cross Collaterilisation' never ever Cross Coll with any more properties, this is securitiy for the bank and less flexibility for you.

If your bank don't like it then terminate your relationship with the bank and take your business else where, his loss and someone elses gain. I'll prefer a morgage broker with experience in investments etc……………..see Qld007 ' Aka, Richard Taylor'

Keep up the great work with your portfolio

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July 31, 2007 - 3:59 am

Hi there everyone, just new to this thing. I've just seen all your great comments and wanted to add to this without offending anyone, The strategie soundz like 'Call Option Deed' which is legal and Developers sometimes use it to great effect.

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July 15, 2007 - 11:21 pm

Yeah, that's a great idea. That's why i was trying to explain capital and exponential growth, thanx for the comment

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July 15, 2007 - 6:38 am

I think it's pointless continuing on this discussion and thank your for your comments, appreciate that.

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July 12, 2007 - 11:37 pm

I do understand that but, ur using someone else's "money", not yours, someone elses . I cant see where you have lost out on this transaction, 60-40% ratio is pretty good.

Whats happening here is people are forgetting, from the start, the "money" wasn't yours to begin with. U have to be happy with a 60-40% "money" ratio?

Now! For u to benefit from this using their "money" you must, hold on to the property and capatilize on
"capital" and "exponential growth"…………if your plan is to invest in more properties,this is the key element. If u sell early then you maybe selling yourself short of the mark.

Look forward to your positive feedback.

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July 12, 2007 - 10:58 am

APerry wrote:

"Wouldn't it be wise to deposit your 20% into a 100% offset account to counter interest on top of the loan as well?

In doing this, u have saved 40% interest on your loan."

Mate, you sound like you think that 20% equity mortgage amount is free. It isn't. It doesn't matter whether an expense is deferred or immediate, its still an expense and the rate is potentially very high if you get good growth from the property.

Sorry if im confusing the subject but if the 20% deposit from Equity Finance Company is interest free then i see a great savings. This is not an expense it's a savings.

Look forward to your positive feedback

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July 12, 2007 - 4:55 am

Hi Elka

Thanku for your positive feedback and i do understand what ur saying. What I’m trying to say is, ur using someone elses money, not yours, someone elses.

Lets say the Equity Finance Company asked for 40% of capital gains, u still come out on top with 60% if u decide to sell, i think 40% of your cg is a small price to pay when youve used their money to make a 60% profit for yourself.

To be honest, i would not sell my property and what i would gain from this is capital and exponential growth.

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July 12, 2007 - 12:09 am

No offence taken Mortgageman.

I do understand what ur saying about sharing part of your capital growth but ur using OPM……….interest free.

Wouldn’t it be wise to deposit your 20% into a 100% offset account to counter interest on top of the loan as well?

In doing this, u have saved 40% interest on your loan.

Look forward to your positive re-action.

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July 7, 2007 - 7:10 am

The Company I’m refering to is called,
Equity Finance Morgage,Milson Point, NSW. You can contact them on 1300 720 110 or 02 9466 8200.

Their are some criteria u must qualify for.

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July 6, 2007 - 2:17 am

Sorry about the confusing info ive provided, what i was trying to say was………………instead of depositing 20% of your own money towards the investment, deposit that money into a 100% offset account to counter the interest rates. i know some 2nd tier banks who will.

There’s a company who will loan u 20% deposit interest free. There are a couple of policies that the company is asking and that is, u need to come up with 5% of the loan. So therefore, u have 25% and the Lender comes up with 75%

Could u plz explain why u wouldn’t use LOC, thanx?

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July 6, 2007 - 1:28 am

Have u thought about putting 20% deposit into a 100% offset account to counter any interest rates from the loan and, to use equity finance company to invest 20% of the deposit into the loan thus leaving u with a deposit of 5% towards your loan. The lender will top the loan up to 100% and the repayments will be low, inthe end ur only using 5% of your own money and saving on interest rates. I know it soundz like your money is going around but, its actually offsetting towards your interest rate. Have u also thought about a line of credit, this will counter your interest rates as well. If your not sure about this, ask your broker.

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July 3, 2007 - 8:20 pm

That’s a small price to pay. U can claim back the commision thru tax deductions.

Apply your conditions and a fixed commision to suit your needs, dont speculate or determine the outcome of your situation.

If the real estate doesn’t like it, go to someone else who does. At the end of the day, take your business ‘Money’ some where else where u can ascertain good value.

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July 3, 2007 - 4:50 am

Do a valuation on the apartment, no doubt there will be some equity. Pay half of what it is worth now and change titles to his brothers name.

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July 3, 2007 - 4:44 am

How about contacting the Real Estate for any potential rent to buy clients? Let the real estate do the research, and u provide the conditions that suit yourself, u can build a rapport without to much hassles. Make sure u screen the real estate as well as the tenant/buyer.

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July 3, 2007 - 4:27 am

Hi there, why dont u ask the tenant if he is interested in a rent to buy. Therefore, he pays for the service of the investment as well as buying it. The investment remains under your title until full repayments have been met. It may give you more options and time opportunity.

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June 30, 2007 - 2:40 am

I prefer a high capital growth suburb with a median price range affordability and an acceptable lifestyle. Dont get too emotional with your property investment about how owner/occupiers look after their properties, your priority is to look after your interest to service your investment.