Dragonflyz wrote:
Hi…

I have been watching, reading and learning from the forums for several weeks now. What a great community, I can’t get enough of the shared knowledge and experience I have tapped into here… thanks everyone for sharing.

Yep, it’s an awesome place

Dragonflyz wrote:
My husband and I are new to IP purchasing and we are…[Read more]

Personally, I don’t see a problem with topping up a loan above 80% LVR (this is only my opinion – and not advice). It sure beats saving like crazy, it allows me to get into the market sooner and I’m using more of the banks money (instead of my own). Again, this isn’t everyone’s cup of tea and this sort of decision obviously comes down to the…[Read more]

I’ve been in a similar situation and received the same advice – as long as the sheet wasn’t broken, then it should be fine.

Cheers

Jamie

Hi zgnilek

Welcome to the forum.

Congrats on purchasing your first home on a single income – it certainly isn’t an easy thing to do.

You’re on the right track. Most first time investors tap into the equity in their home in order to fund the deposit and purchasing costs (stamp duty etc) on their investment property.

In your circumstance, you…[Read more]

Hi Rich

Welcome to the forum.

Your question regarding where to purchase outside of Brisbane is extremely broad. You’ll have to do some ground work – read up on forums like this, grab some books/magazines and begin educating yourself about what to look for when investing in a particular area.

To qualify for the FHOG you usually have to live in…[Read more]

Hi Wade

I’m having a little trouble understanding what you’re doing.

The easiest way to think about the ideal structure (from a tax perspective) is to have your IP debt high and your PPOR debt low. This is an extremely general comment but might help shed some light on your situation.

Therefore, if you’re looking to allocate funds to pay down a…[Read more]

Totally agree with Terry – you shouldn’t pay off an IP debt if you have a PPOR debt.

The rent received from your IP will be added to your taxable income – and because you’ll have no interest to claim (if you pay it off) then it will be positively geared by quite a bit (because you only have other expenses/depreciation to claim).

Cheers

Jamie

Are you the buyer or the seller? Either way, if exchange has occurred I’m sure you’ll have to compensate the other party in some way.

Best to seek advice from your conveyancer/solicitor.

Cheers

Jamie

mech81 wrote:
Hi Jamie,thanks for your comments. Will definitely call a few property managers in the area. I was hoping for this property to be as minimally negatively geared as possible for a couple of years (almost paying for itself) as it is hard to get a positively geared property within capital cities and capital cities are where I'm more…[Read more]

Hi Mech

Welcome to the forum.

My thoughts on your questions are:

1. The current tenants may be paying too much. If/when they vacate you might not be able to rent it out for the same amount. For that reason, it would be prudent to base your calculations on a lower rent.

2. What is the particular demographic of the area? What do they demand?…[Read more]

Hassassin wrote:
From what i understand, income tax may be payable on the rental income earned, however any mortgage repayments may then be tax deductible, because in effect your place becomes an investment property!

Yes – it would just be treated the same as any investment property that’s why it’s important to track income and expenses.

Cheers

Jamie

The exact closing costs generally aren’t known until a day or two before settlement as there could be rates adjustments, etc that you may need to reimburse the seller for.

However, the big ticket items which account for the majority of closing costs such as stamp duty, conveyancing, etc can be worked on well in advance. Particularly stamp duty -…[Read more]

zeusrumble wrote:
Think i can afford it and id rather rent and use the rental income to get more capital up for purchasing another investment property
just not sure who i contact. Obviously a real estate agent to handle the rental side of things but ither than that do
i need to contact an accountant to see what taxbreaks i can claim or would i…[Read more]

rz2010 wrote:
I now plan to convert existing loan to offset before using the extra payments for deposit on second IP. I will set up the second IP loan with offset also (no cross-collateralisation between IPs). Also will make both loans IO.And yeah definitely shop around for best deals. I agree with you Terryw about CBA. Time to break up with…[Read more]

Hi rz2010

Lenders don’t necessarily charge more for an offset account. However, a lot of the loans that come with an offset are part of pro packs which generally have an annual fee.

That said, lenders like AMP offer a really competitive product with an offset account and don’t charge any ongoing fees.

The banks are being very aggressive at…[Read more]

sc541 wrote:
Thanks for all your responses.

I tried calling the strata manager but they said they cannot answer any of my questions. They can only answer questions from the sales agent with permission from the vendor. Is this correct?

Yep, but the selling agent should be able to provide you with written authority to inspect the minutes, etc.…[Read more]

rz2010 wrote:
They rate discount of 0.7% was what I obtained 6 years ago and I expect you are right about being able to obtain a better one nowadays.

Yep, I arranged 0.9% off for a client last week. If they don’t reduce your rate, there’s a couple of more competitive lenders that will happily take on new business and offer up to $1,000 to cover…[Read more]

Hi propertybee

You’ve have to call a few and ask. It might be a matter of them simply increasing the excess for any claims made during that period. One month doesn’t seem like a great deal of time (but I could be wrong).

Cheers

Jamie

Hi SJonesy

If it has dropped of your credit file and you’re only borrowing 50% you should be right. However, I’d double check that it will be removed this year.

Cheers

Jamie

I agree with eilatan28 – I’d be a very concerned regarding the current tenant vacating and someone else occupying the property who never signed the lease. From a landlords perspective, I’d be tempted to scrap the current lease altogether and get new tenants. I know it’s not the news you’d want to hear but if you’ve been living there for 2 years…[Read more]