It is a split loan, the business cost 175k on total. So my family members loan is 70k and only pays interest on that amount. The security is the equite in her home. Her name is on the business loan (her70k) and the leases.Sorry Terry, im probably not giving you sufficient information. This is just my understand of what is going on.She is going to…[Read more]

Thanks for the reply Colin. I also might add the the partners say thay "cant afford" to buy her out. Even though they have a couple of investment properties around the place and seem to have a decement amount of money.So would you suggest to get the partnership valued and try to sell the share to the other partners?

They don't own the building, just the business. The lease to the storage shed and shop is another 6 years.Is the family memebers business loan able to go over onto say or home loan? If she was able to get out of the business. In other words take the loan with her and have her name taken off the leases and business. She says she doesn't mind just…[Read more]

It's a partnership, my family memeber owns 40% and the other two 40 and 20%It is a fruit and veg shop in a block of about 6 shops (all connected too each other) http://maps.google.com.au/maps?hl=en&q=old%20tudor%20launceston&gs_sm=e&gs_upl=63l469l0l750l4l3l0l0l0l0l0l0ll0&bav=on.2,or.r_gc.r_pw.&biw=1920&bih=849&wrapid=tlif131062340320311&um=1&ie=UTF…[Read more]

The difference being the 70k is against the equity in her home. And if for any reason the the friend and husband cannot pay, she is obviously liable for rent on the place aswell as rent for the storage shed etc. Im also not sure of the exact details of the loan they have together, I know she said she has a loan of 70k, woudl they only come after…[Read more]

I know pinkboy, lesson learnt it would be safe to say.Does anyone else have advice for my family member? Is their any accountants around at the moment?

I agree bjsaust, it can easily be left out though, considering they were best friends and had been for 20 odd years.And thanks for your input.I would of thought it would be possible to just sign over my family members side in the business over to the friend and leave with the loan, or this ALOT more complex or even not possible?Does anyone have…[Read more]

The library is a great idea, will have to check that out.Thanks Derek, no im not struggling Just no point of buying nurmerous books when I will be on one for a few weeks haha. It's just about choosing which book is going to be the most beneficial, but I will definitly have a reade of the Yardney book you suggested.Thanks though , much appreciated.

Thanks Derek, Im going to buy that book shortly. I read about the book and does sound like it will answer many ofmy questions, thanks alot!!I have also looked into a few books that you suggested Jamie. Struggling to just buy one rather than numerous you guys have suggested haha!

I assumed that thanks heaps mate!! You have help me very much.And yes, we should have skyped haha! Thanks for your time and reacting well to the million and one questions I put on the table

Sorry Jamie, would you also mind answering the above question from your comment, it would give me a lot better grasp of the idea.

Sorry, I have one other question to finish.Is the idea to keep the IO loan on the IP until I sell in say 20 years? Or would you change to pay it off? Or is the aim to only pay off when u sell down the track

Very smart man Jamie, that makes sense. Thankyou so much I will keep reading my books and use any resource I can and hopefully have a great understanding on everything to make the jump into the market.Thanks again

I would definitly be converting it to an IP, I plan to spend no more then 300k on my first property. I have a much more expensive idea for the home I would like to live in down the track.So it would be better for me, knowing I will convert to an IP to get an IO loan and pay the minimum repayments and pay into an offset account? Which I could t…[Read more]

If I had an IO, am I paying more interest then I would be on P & I?Would it be more beneficial to me to just have the 5% deposit rather than save for 10%?  is the mortgage insurance much different between the two? I guess what im asking is, is it worth saving for 10% deposit to save on mortgage insurance?This is why I said about negative gearing,…[Read more]

that is another good idea!It seems like a double edged sword, both have their advantages and disadvantages.The only way I would see it working is to basically pay off my PPOR and then save the amount to become neutrally / positively geared when I go to buy my IP. Which would many atleast 10 years before I am able to, atleast by myself.

Heath Workman wrote:

Chris89 wrote:
From what I have read, negative gearing is the way to go, however from the posts I have read here everyone says positive gearing is better? Is there a better and worse? Would I still be able to buy as many properties with positive gearing? As it is obviously going to take a longer period of time to buy a…[Read more]

Thankyou for your time Jamie, much appreciated . I have a few more questions if thats ok?For my first property (PPOR) would a PI or IO loan be better? Should I look to shave as much as I can off the principal before buying an investment property? Or would it be better to pay the repayments and save the rest to purchase an IP to be…[Read more]