Shell H wrote:
Along with meeting with other agents as I really don’t think this agent is working out for me.

Absolutely! Was thinking you needed to get rid of the current agent but looks like you’ve already got that sorted.

Cheers

Jamie

yep, that’s what I was thinking. Another IP forum has it – it’s easy to use and works well.

Cheers

Jamie

julieanne_w wrote:
So perhaps… offset account is still the best way to go because it will save me interest in the mean time but then can be used to offset my next "non- deductable " purchase… I think i just answered my own question ??

Yep, that’s right. Sometimes it helps just to think out aloud

Yes, that loan will become deductible…[Read more]

It’s all leasehold in the ACT.

Cheers

Jamie

PositiveMindSet wrote:
By the way, Jamie M, awesome you switched to an offset. With CBA? I thought they didn’t have a 100% offset and had minimum withdrawals and also transaction fees!!! I have facilities with other banks that are 100% offset and fully transactional. Curtesy of a finance broker who is in property investing too.

Yep, I agree -…[Read more]

chappy1970 wrote:

The thing that puzzles me was that the item was listed as $XXX + and the Vendor wants 10% more than the advertised price.

Ah – I suspected as much. They know that the seller has unrealistic expectations and probably regret taking on the listing…..and know that there’s bugger all chance of selling it. Even if this was the…[Read more]

How incredibly frustrating and unprofessional. Is it a small town? I’m not sure of the legalities, but is there any way you can find out who’s selling it and approach them directly? If the seller gets wind of this, they may be able to get rid of the REA and sell directly (win-win). I’m sure it’s not that simple though.

Cheers

Jamie

Terryw wrote:
Imagine, my friend's parents bought a property in Sydney in 1960s for $16,000. It is now worth $1mil+. The annual rent would probably be twice what they had paid for the property. Imagine if they had used an IO loan initially. they would still owe $16,000!

Terry’s quote hits the nail on the head. It’s the increase in the value of…[Read more]

Agree with some of the other posts – some photos of the inside would help.

Jac’s suggestions could work wonders as well. Cheap, low maintenance, appealing – might even add a little value.

Cheers

Jamie

Quite handy – thanks for sharing

Cheers

Jamie

risk1return2011 wrote:
A question on IO , I was looking at a couple of the banking website calculators and after the IO  repayment ends ( in this case 10yrs ) the repayment seemed to increase ???

Because it rolls onto principle and interest. At this point, you generally switch back to interest only.

Cheers

Jamie

Agree with Richard.

Firstly, I’d untangle your loans (at present their crossed). A decent broker should be able to assist here.

Secondly, I’d consider converting all loans to IO, with an offset account attached to the PPOR loan.

The correct structure from the start will prevent issues in the future.

Cheers

Jamie

In Canberra you can claim it in the first year.

Cheers

Jamie

You get slugged for it on each IP in the ACT

On the flip side, you get to claim stamp duty in the first year

Cheers

Jamie

julieanne_w wrote:
Re the above suggestions of holding onto the money for a future PPOR purchase …could you put the money into the investment property to save on interest for the time being and then draw down on this later to fund the PPOR?

Absolutely. But as advised above, do it with an offset account. Think about it – you have one…[Read more]

Charlie_B wrote:
This is the sort of thing my accountant was suggesting…getting something that is self-sustaining. He said that when we do eventually go to buy our own home, the banks will have more regard to us already having some property and able to service a loan rather than having invested in shares etc… Not sure how true this is, but…[Read more]

Hi Charlie

Welcome to the forum.

What’s stopping you from purchasing your PPOR first? $40k on a 95% lend will get you something just over the $400k mark (pending borrowing capacity, etc), or is that not enough to secure the type of property in the area you’d like to live?

Cheers

Jamie

Hi Gametime

I would have though the opposite. This forum definitely has a more pro cash flow positive following than negative gearing.

With your income, you’d be best served purchasing something that doesn’t cost you a lot to hold (because it will quickly reduce your ability to borrow more).

Personally, I wouldn’t use a $100k deposit on a $250k…[Read more]

Hi Karlm

An offset account is a loan “feature.”

A line of credit is a type of loan.

Think of an offset account as a savings account linked to your home loan.

Instead of being paid interest on your savings (as you would a normal savings account) – the money in your offset account reduces the amount of interest you pay on your home loan.

In…[Read more]

Hi bluehoon

Yep, consumer debt can hurt!

With your current property, can you add value to it through renovations and create some equity (instead of waiting for it).

Have you had a depreciation schedule prepared? This will bolster your tax return and assist with paying down some of that “bad” debt. Also make sure the rent you’re currently…[Read more]