Forum Replies Created
Thanks QLDs. Is there a way that I can actually find out the specifics. I input the data and the postcode and get an amount back for LMI.
Chris.
Barney, how can we help, this is a help needed forum, ask away i'm sure everyone here is very happy to help out, thats the impression I get when I ask my questions.
Ask Away…..
beaniemonster wrote:Be constructive, we are all here to learn and share… not pick on newbies like we are AT school!This is bully-free forum. Nuf said.
Even if you buy now and have no or little growth for a few years you can still put money in an offset account and may have a positive CF position, then after those few years you will be laughing when the boom hits. Whereas if you sat back and said yea next week, next month, next year, next lifetime, you'll be sitting watching the news on TV with articles like "houses again reaching record highs".
Also house prices tend to go up overall, overtime(i know of slumps and booms), so the prices might get even more out of reach, and then your motivation will drop as you will see your dream escaping, then you will let go and watch it fly off into the distance leaving you with the rest of the population.
I tend to get the responses of my attitude is "blah blah" or you are so young, you know nothing, Some people on this forum show no respect. Blogs, you have't disrespected me, i'm just annoyed at how people don't treat me with any seriousness and just push me aside as a young dreamer who thinks everything will be served on a silver-platter and wealth will follow.
Chris.
I wish I bought one of them, then I would be officially a property investor.Give me 2 and a half years and I will be jumping in and soaring higher and higher.
I'm so excited about my future, I don't know how people can keep on living their day-to-day if they have no dreams or desires.
You've got to dream a little, then wake up and tackle the world with your team of professionals by your side.Chris.
Remember you don't have to invest in your own postcode or even a surrounding one.
Many people even invest in real estate interstate and some overseas. So investing on the other side of the city, if its more affordable its even better that means you can g et in quickly and you will be able to expand your portfolio much quicker.
If the reason that you don't want to invest in property is because you move all the time. Why????? You are buying investment properties,you dont need to live in them at all. The house that your actually living in will have the troubles of moving.
If you can get a large enough portfolio maybe you could rent in more expensive suburbs and then you can move countries, change postcodes with little fuss and will give you more flexibility, you will still be earning more capital gains than most people as you will have a IP portfolio backing you up.
I hope I helped.
Kind Regards,
Christopher Fife.Buy now or buy later??
Ask that question to yourself everyday, for 10 years, and you will be following the buy never idea.
You need to be in it, get in as quick as you can, before you turn into one of those old people full of regrets(like oh "IF" I only bought an IP back then I would be…)For me I can't wait to get in, i'm so excited.
Tyson I like how you compared the depreciation to borrowing money.
People always say you can't save atx, but just defer it.
Thats like saying to your friend Bob if you can borrow 10K now and give him back 5K in 10 years. More logical to do this, evne though you have to less than half back due to inflation and the 50% discount.Great stuff, depreciation, every investor should get a quantity surveyor(i think thats what they are called) to do a thorough examination of every property to claim as much as possible, you can also claim the expenses on the actual quantity surveyor.
Christopher Fife.
P.S. And if you don't sell, its pretty much like saying oh sorry Bob, your not having any money now and you keep all of it.
Thank you everyone you have helped me heaps. I guess the best way now is to do what Tyson said.
Thanks,
Christopher Fife.I see where your coming from with the 'robbing from Peter to give to Paul'.
My main point for this is that you will gain some advantage in that you will have a lower non-deductable debt and a higher deductable debt. That is a good thing.
Whereas I could compare this to two similar debts one being deductable and one being non-deductable. If the deductable one is being increased when the deductable is being decreased you should get better deductions as the 'deductable' debt is larger and hence more TAX back.
How could I determine if it can be done, contact the ATO, see an accountant??Thanks,
Christopher Fife.hmm, interesting scenario. You buy in your name. and then you own a company and you are the director, now the company needs somewhere to operate, oh and the company operates in your residence, so the director works at your own house. Hmm, does this sound right. Maybe your onto something, or its already been done and failed???
Ah thanks guys.
So having no credit history and those details given above do you reckon that going with the 95% option will work?
Did you have any alternatives to the 95% LVR and using offset as reno costs.
Also just another quick question. I think(kind aassume) that credit cards will hurt me getting a loan as they will see that limit of credit as another amount to be in debt and hence a higher risk, is this right?? is there anything else??
Thanks again guys, much appreciated.
Christopher Fife.
Good idea there 007. Um but i have no credit rating at all, and the deposit should be crucial in them lending me the money. How would I be able to go about getting a 95% loan with no credit rating. Also the income that the loan will be use will be 2 income earners with i reckon $1000 in total after tax per week. so would they lend to me. If not what other routes can I take for this situation.
Thanks again.
Kind Regards,
Christopher Fife.How do the prices compare between the pine and the MDF. These MDF ones seem pretty good.
Also If you have an issue with the water could you just put pine ones in that region and then MDF everywhere else??
Kind Regards,
Christopher Fife.I agree with Tyson, that consolidating your debt idea can be a trap.
It will decrease your overall repayments, but as Tyson said paying it off in 5 years at 12% is better than 25 years at 8%.
You and your girlfriend bought a 'house'. What do you mean by a house a PPOR(principle place of residence) where you live or an IP(investment property), from the figures given it sounds like you have a PPOR as you are not paying much off the principle of the loan.
Um, this is assuming that this property that you bought is your PPOR. OK, try moving out of your home and renting it out to tenants. Your interest will be tax deductable, and so will alot of other things aswell. Then just rent somewhere else in the meantime.
It will mean more cash spare everyweek to slam down that mortgage, and in doing so you will acquire larger equity faster.If you still have the car loan by itself and dont want to move it over to the home loan, then i consider you pay that off as fast as you can, if you are ahead in your home repayments, then throw all the money into the car loan. Once that is gone, you will have alot more cash free and your loan should fly down, this along with the renting out and renting somewhere else with tax deductions should provide quick equity which you could draw down in a few years or so for another investment property and you may hten be able to move back into your PPOR if you please.
We need more details, so we can assess your situation.
Kind Regards,
Christopher Fife.Thank you for your response Crj.
I just did a search on google as 'property contract clauses' (with pages in australia) and the first link is this.
http://www.ownitconveyancing.com/ContractClauseInformation.aspFrom first look it seems to have every clause under the sun, there is alot, it should be fine for you, but if you need any reassurance on any of them on the website i'm sure someone here can help you out further.
Kind Regards,
Christopher Fife.Thank you Xenia. I expected that answer, anyway back onto enjoying my sunday morning.
Happy investing.
Kind Regards,
Christopher Fife.Ah, I have a question. (I thought of it a few days ago and then forgot and was kinda angry, but i remembered so i better get it down).
So Elkam we have the same situation as we have been talking about in this thread but now say i decide to keep the property for say 12 years instead of 6. So i get CGT exemption for 6 years but then what happens with the 12 years, do i lose the whole CGT exemption or do i only pay a % of the CG in terms of the % over the 6 years.
E.g. I make 100K on a property, after the 6 years i pay no CGT so i get 100K(nice).Same thing after 6 years 100K up, but now i keep for another 6 years. and in the mean time io have made another 100K. So now after 12 years in total i have made 200K. Now if it is what im thinking it is then i only get taxed on half of it as i have had half of the time CGT free, so 200K, half time free, making the bill 100K, so i pay tax on 100K, say at 30% tax rate and get in total after the sale after 12 years 170K.
Also just to add, most of this time i have been getting +ve CF and am now reaping more rewards then jsut +ve cashflow for 12years.Hmm, Elkam what do you think of this? What does everyone think of this?
Christopher Fife.
Thank you again Elka, you have helped me so much.
Hmm, I did mean buying costs, not selling costs.
um, i said 2.5K because I should get stamp duty for free, but your probably still right and it should be atleast budgeted for 5K or more.I'm breathing a sigh of relief that I wouldn't haev to pay any CGT on it, provided I follow the rules that we have talked about.
Hmm, i'm outta questions at the moment, Elka you have done well by being able to silence my barrage of questions.
Thank you again,
Best Regards
Christopher Fife.
