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Viewing 14 posts - 61 through 74 (of 74 total)
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  • Profile photo of Chris-SydChris-Syd
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    @chris-syd
    Join Date: 2003
    Post Count: 75
    September 22, 2003 - 10:20 am

    Hi Renee2003,

    There is no reason you could not do that. While the loand and interest go down you will be making a bigger profit.

    This will allow you to get more equity in the IP until you are ready to buy another IP.

    Chris

    All post are IMHO.

    Profile photo of Chris-SydChris-Syd
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    Post Count: 75
    September 21, 2003 - 1:49 am

    With 350k in you PPOR you could borrow 80% to invest giving you 280K for deposits and fees.

    So if you find a property for 100k you lend 80% of it 80k get the 20% deposit from the PPOR investment loan of 20k and the fees approax 5k.

    So you have 80k on the invesment property and 25k on the PPOR investment loan. 105K loan all tax deductable.

    In this example you could get 11 deposits of 25K total 275K.
    11 properties at 100k each total of 1.1 million.
    11 investment loans at 80k each total 880k loans.
    Total loans 1.155 million.

    So you have 12 properties in all.
    11 x 100k =1.1 million
    1 x 350k = 350k
    TOTAL = 1.45 Million

    Loans of 1.155 million this is almosr a LVR 80%.

    If you can get positive geared property you will be WAY ahead.

    And yes it very hard to find an 11 sec property but it is great when you find one.

    Chris

    All post are IMHO.

    Profile photo of Chris-SydChris-Syd
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    @chris-syd
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    Post Count: 75
    September 21, 2003 - 1:12 am

    One thing about shares and property is levelage.

    If you have $100K in shares it is only $100k.
    But if you $100k in property at 90% loan that is $1 million worht of property.

    If they go up 10% you
    $10k from shares but $100k from the property.

    Captail Gains Tax is another thing. To get a profit from shares you generaly have to sell but property you can refinance.

    Banks and lenders will usually lend upto 90% on property but only about 60-70% on shares.

    Also a lot is personal preference. I own shares as well and that is diversification.

    Chris

    All post are IMHO.

    Profile photo of Chris-SydChris-Syd
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    @chris-syd
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    September 18, 2003 - 9:16 am

    I play with a group that has regular meetings.

    I am there on and off.

    Games are

    Monday at Weston in Sydney and
    Thursday at North Sydney Leagues at North Sydney

    Check out the website for more details
    http://www.northernbears.com

    Chris

    All post are IMHO.

    Profile photo of Chris-SydChris-Syd
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    September 6, 2003 - 4:13 am

    I am in the middle of doing one now. My suggestions would be to get a building and pest inspection done before making an offer. You can then get information about the place from these two sourses as well.

    It may cost a few dollars before getting a property but these are well worth it.

    Try calling another real estate in the area and get some details about the area from them.

    Chris

    All post are IMHO.

    Profile photo of Chris-SydChris-Syd
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    @chris-syd
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    August 18, 2003 - 8:37 am

    If you bought these places as a new investment property then they should have come with a depreciation schedule.

    If not then it is worth getting them done but a few people on the forum have used several depreciation companies for cheaper prices.

    Chris

    All post are IMHO.

    Profile photo of Chris-SydChris-Syd
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    August 11, 2003 - 7:19 am

    Hi Ben,

    You can use the equity in any way you want. From you information you are looking to borrow against the extra 20%+ that you now have.

    Generally you borrow up to 80% LVR of the property you have and the new property you want to buy.

    So for example your old proptery is worth 100K you can get a loan (with lenders moragate insurance) of 80K. So the differencce between this amount and loan you have is the equity you could us for a deposit on a new place so that you only have 80% LVR on both the old and the new one.

    Chris

    Profile photo of Chris-SydChris-Syd
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    August 9, 2003 - 4:22 am

    You can go over the 80% LVR it just means you have to fork out Lenders Mortgate Insurace (LMI). This may be a few thousand at the start of the loan.

    Have you found a good property yet?

    Profile photo of Chris-SydChris-Syd
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    August 9, 2003 - 4:15 am

    Knowledge and experince can change a lot of things you do.

    Read a lot but don’t rely on 1 Author. There are at least 3 others out there that are Australian that I know of as I have their books.

    Yes negative gearing is to be avoided.

    Profile photo of Chris-SydChris-Syd
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    August 9, 2003 - 4:09 am

    Northern Bears Casshflow Club runs on a regular basis.

    Monday nights in the city and Thursday night at North Sydney Leagues Club.

    Check out the website below for more information

    http://www.northernbears.com/

    Profile photo of Chris-SydChris-Syd
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    August 9, 2003 - 3:52 am

    It all depends on where you look. You need to look outside your own city a lot.

    Interest only loans are good but it depends on your own curcumstances on how you want to do your finances. If you go Principal and Interest (P&I) this will get you more equity in the property faster and then you can borrow against this to buy more property.

    Have you read any of the positive cashflow books out there? Do so and this will give you more insight.

    Profile photo of Chris-SydChris-Syd
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    August 9, 2003 - 3:47 am

    Hello Peter,

    Good to see you starting out early.

    I suggest you READ every book about positive cashflow/gearing you can get your hands on.

    Has anyone read Steve’s stuff? I have not yet.

    But there are at least 3 authors for Australia that I have read and they have very good details about the Australian Tax laws, stamp duty for each state etc.

    This will give you a good start. I would like to be able to start again. What every you do try to keep away from negative geared property. With a low income it can set you back years as I have found out.

    Knowledge is your tool so get as mutch as you can.

    Profile photo of Chris-SydChris-Syd
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    August 8, 2003 - 6:18 am

    Hello All,

    I have my own house I am living in and 1 negative geared [:(!].

    Bought off the plan some time ago 2 years and only just been rented out for 6 months.

    As it’s taking money outa my pocket I have been looking and reading lots about positive geared IP.

    Hopefully I will be on my way shortly with a postive one in the need few months.

    Profile photo of Chris-SydChris-Syd
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    August 7, 2003 - 7:24 am

    Thanks for the start.

    Anyone else got some useful question to ask about property?

Viewing 14 posts - 61 through 74 (of 74 total)
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