Please keep in mind that not all banks/financial institutions offer 100% offset accounts and also the interest rate will be higher if you are doing IO with a 100% offset account.

Please feel free to correct me if I am wrong.

Cheers
Paul

You must be in a good growth area or done extensive renovations if you bought you house for $415k and think you can sell it for $500k?? That a 20% increase in 1 YEAR!!! Why would you want to sell your house?? Seems very strange to me

Have you actually had it re-evaluated or where are you getting these figures from?

Cheers

These forums are for helping people, if you don’t know what you talking about or your going to be a smart-ass then go somewhere else.

I get offended when people try to comment on stuff they clearly don’t understand.

I actually am a structural engineer and know what I am talking about. Not my fault if your just an IDIOT!

I agree with tools that this is not the case.

However, as a structural engineer, double brick houses will require a lot larger footings because their is a smaller tolerance for movement in the footings to prevent cracking.

However, if you have non-articulated double brick house then it may be alot harder to find a builder because it is…[Read more]

Firstly congratulations on taking the step to buy three investment properties. I believe that the buying costs to buy the properties and the high selling costs you pay to sell the property makes it not worth selling the property unless you absolute have to. You would probably pay $10,000 + commision to sell the property which makes it…[Read more]

I have actually done quite a bit of research into shares as well as property. In fact, while I was in Adelaide I attended a 6-week course at a company called “Trading School” on Greenhill Rd, however they taught more about trends which don’t suit the cheap “10cent shares” as much as your top 200 bluechip shares. So its a different type of…[Read more]

I am 22yrs old and am looking at buying 5+ properties over the next 10years. I also already managed to save $25k in 13months of working and that includes living away from home.

When you talk about making sure you get correctly setup for the long haul how would you recommend setting everything up a single male which great dedication,…[Read more]

I lived in Port Noarlunga (borders Christies Beach) for 5 years and i’m currently living in Victoria for 12months. However, all the areas around Christies Beach (Hackham, Morphett Vale, Noarlunga, Old Noarlunga etc) around priced around 180-220K for a nice 3BR house.

My personal opinion is that if you can find the right place in the…[Read more]

I forgot to mention Wallaroo on the Yorke Peninsula – I am 95% sure their is a new marina being built their as well. I know that vacant blocks (~600sqm) one or two streets back from the waterfront were selling for around $65,000.

Cheers
Paul[suave2]

I’m sorry to bust your bubble but their is no inland marina in South Australia. Their is a new marina being completed in Port Lincoln, but most of those properties have already been sold, their is a new marina/subdivision someone in Port Adelaide that has been advertised for a while.

Just before Christmas their was an article in the…[Read more]

Looks like you are doing very well to be saving $2k a month? Can I ask what you are doing to be able to save that much a month and go to university?

I graduated with a engineering degree in 2005 and if i’m a total tightass can save about $1800/month but thats in the months when I don’t have to pay car rego, insurance, sports…[Read more]

I’m a structural engineer and have dealt with these types of problems before. Their are two options in this situation that I generally use. Firstly, is to total remove the inground pool (a bit expensive).

I generally call up a low strength concrete (say 2-10MPa) which for your information 2-3MPa is about the hardest you’ll compact…[Read more]

I just thought of something. Can you pay yourself a 10% property management fee and/or charge yourself and hourly fee to look after a property? So therefore you could still claim 10% PM fees? If you think about it, by doing all this work you are losing money/time that could be spent doing something else. Therefore could include it as…[Read more]

Just clarifying: So to avoid x-collateralisation in the example you made you would need 3 individual loans?? The existing loan on the PPoR, the $40,000 equity from the PPoR and then $160,000 for the IP?? Is this correct, and how would you then go about paying off all these loans?

Do any incur extra fees and interest rates or…[Read more]

Thanks for your response!

Just to clarify, so those costs include closing costs when you purchased the property, ongoing mortgage management fees etc??

Did it also include the interest on the loan because that would probably be the largest thing??

Cheers

Paul[suave2]

Firstly I’d like to say a HUGE congratulations on what you have achieved so far. I don’t think their would be many people in Australia that would be in your position at 26yrs old when you did it all yourselves!

Just a quick question: You mentioned that you bought a couple of vacant properties obviously for CG purposes. Did you…[Read more]

However, you might want to talk to an accountant to make sure that the increased interest that you are paying on your IP will be tax deductible.

Cheers

Paul[suave2]

Unless you bought property 5yrs ago when it was still possible to find cashflow positive properties you will most likely find that you will have to work full time to maintain the repayments on the loan because it is VERY unlikely you will find a property that pays for itself and can allow you to stop working.

I personally didn’t find Steve’s…[Read more]

I thought you said a good return?? That rental return on this property is only 5.94% plus I would need to come up with 5% closing costs and it already needs work.

Sorry, but it doesn’t sound all that great to me. I can get 6.25% interest for leaving my money in the bank at the moment with no hassle.

Thanks anyway

My parents just had a similar situation. They have bought their first IP property but when they went to the bank for a loan the bank valued the house $40,000 less than they are paying for it. Their reasoning being that the property is in a new area and their are no similar houses to compare prices. I feel very nervous for my parents at…[Read more]

So does anyone have any new years resolutions?

My aim is to buy 1 IP by the end of 2007! That will be a great deal to me because I am only 22yrs old and 2006 was my first year out if university studies!

Goodluck everyone!

Thanks for all your replies. They have been very helpful. However, reading the last response from Richard prompted another question: Other than the purposes of keeping your money more readily available with an IO loan if I have an IP that is on a P&I loan is the interest fully tax deductable?

I ask because the last response by Richard…[Read more]

Just a quick question about mortage insurance: How is the amount of mortgage insurance you pay worked? i.e. Will is be less if you are borrowing 90% as opposed to say 85%?[suave2]

Cheers
Paul

Congratulations on starting to save money. I too am saving as much money as possible. At the moment I am earning ~$1200 per fortnight and saving ~$700 per fortnight, which isn’t bad considering i’m not living at home either. Although over Christmas I will probably not save anything because of presents and rewarding myself for a good year…[Read more]

The couple I was talking about one works as a nurse (like you said) and the other is a police officer. I know the wife that works as a nurse gets the salary packaging which would confirm your thoughts.

Cheers
Paul[suave2]

I don’t agree with what Kev said about selling and buying another property to renovate. It is simply not wirth the hassle with a child in the house. Also, as Kum Yin suggested capital gains less than 25% is not worth it because you won’t make enough money after you take out all your costs to make it worthwhile.

However, one suggestion that…[Read more]

Everyone recently has been talking about interest only loans for property… If I was adopting a “buy and hold” strategy what is the advantage of buying a property with an interest only loan and that is still negatively geared?

I ask because if the property is negatively geared (which it most likely will be) than you are totally relying…[Read more]

thats a great story!

How can you afford to 5 IPs, be 22 years old and earn 35k pa??
Are the properties in regional towns and are they cashflow positive?

Do you have a problem servicing the loans and how do you go about getting approval from the bank/lender to borrow more money?

Cheers

Paul[suave2]

Without looking at the property it is impossible to know why the price is so much less then other properties in the area. Their may be some problems with the house such as structurally, termites, plumbing etc..

Alternatively, the vendor is in a hurry to sell the property before Christmas and has just dropped the price. Maybe the figure…[Read more]

Just a quick question:

With a residential IP what is the tenant expected to pay?

i.e. Electricity, water, gas, land/council rates etc..

Thanks
Paul[suave2]

Just a quick question:

When you allow 20% of rent for outgoings does this include everything – i.e. property management, land rates, electricity, water etc. that have to be paid.

Also, in a residential IP does the tenant pay electricity and/or water rates?

Cheers
Paul[suave2]

Think of Today Tonight and those type of programs as “reactive” as opposed to “proactive”. They only broadcast information that has already happened. Otherwise everybody who watches the program could just get rich by doing whatever the little person on the tv screen says and we all know that simply is not the case…

The way to become…[Read more]

You could have sheep AND alpaca’s. Alpaca’s are often put in with flocks of sheep because they keep the foxes away. I have a couple of Alpaca’s at home – $1500 for a female it cost me!

Anyway, good luck with the challenge! Any ideas what your next trade will be? What happens if you can’t sell that ticket before the seminar is on – then you…[Read more]

That sounds interesting. Were their any particular requirements that had to met before they would approve your purchase? i.e They would only lend 80% of property value or had to have equity in another property?

Where was the property? EU? What the stamp duty, morgage fees etc. similar to Australia

Thanks

Paul [suave2]

The property sounds very intriguing. Can you provide a bit more
detail about the property?

Like how old are each of the houses? What suburb/town is it located? These are all things we’d need to know before investing $240 in a property…

It just seems a bit vague and dodgy to me…

Interesting topic. Just out of interest, is it possible to salary sacrifice my HECS debt? That would be very handy. Also, how come some companies allow you to salary sacrifice everything (inc. home loans) but other companies do not. This seems highly unfair, for example the private company that I work for only allows salary sacrificing…[Read more]

i reckon 15% under is a pretty good spot to come in at. Don’t tell the agent what you are gonna offer. Go out to the car, sit and write an offer, go back in, give it to the agent along with ur card if u have one, and leave.

Give em the impression u know what u are…[Read more]

I was not aware about the stamp duty exemption on a first home. Can someone please tell me how much this stamp duty exemption is? And for which states it applies to?

Thanks
Paul[suave2]

That was a very interesting response that you wrote, however I also had to read it a couple of times to make sense of everything it says. Especially because my background is structural engineering and not economics.

Are there any websites or books you could recommend reading to get a better understanding of how australia’s…[Read more]

Just a quick one…. Someone mentioned concession on stamp duty for first home owners?? Is this true, is their any states that give a discount on stamp duty as well as the FHOG to first time buyers???

Thanks
Paul[suave2]

I’m 21 and just finished Uni, i’m on about $40k p.a. as well and have a $20k HECS debt. Now you are telling him that he can still buy a $300k house. I’m sorry, but that simply is not the case. I’m not a negative person but I will point out some interesting facts:

Stamp Duty on $300,000 approx $13,000. Now if you add in all mortgage…[Read more]

I’m a bit confused as well… Is the property rented out at the moment? Your not clear, because the tenant should have first contacted the landlord first not you (unless it is privately rented).

Anyway, it sounds structural to me and i’m a structural engineer and have done a few reports that sound very similar to this. Especially in regional…[Read more]

Terryw I recieved Steve McKnights chapter in the post last week and yes he does say that you shouldn’t withdraw money from your loan for items that depreciate.

However, the single chapter did somewhat annoy me because he talks about the property making money if the gross rental return is larger then the interest paid on the property.…[Read more]

Cheers

Paul[suave2]

In this case I agree with you. I think Marc is dreaming a lot if he thinks he can still buy a property for $60,000 and get a return of $150pw and still get a 200% increase in capital growth over 20 years.

Also, I prefer you idea of buying an investment property first. This way, the government and the tenant is atleast helping me…[Read more]

Foundation you seem to be very ridiculing of Simon quite unnecessary. He is simply giving him his opinion based on his personal experience. And in an unpredictable market the only thing you can do is base your opinions or your experience and previous history.

If you have a different opinion than you can tell the person that but that…[Read more]

Can I ask how you are getting 5-6% management fees? Have you got a lot of properties or something because my understanding is that management fees are around 8-10% ?????

Thanks
Paul[suave2]

Thanks for your responses. It sounds like its not worth the hassle of pre-approvals until i’m serious about submitting offers. Does that mean that pre-approvals specify the bank/institue that the approval has been given? I will assume so unless otherwise told.

I suppose its hard to crunch numbers the first time for a property when I don’t…[Read more]

Can you tell me when his seminar is on, where it is and how much it is to go too? I will be in Adelaide from 20th October til the 7th November.

Sounds like it might be worth going to because I live in rural Victoria so I don’t get to the cities very often.

Regards
Paul