[Jason TyrrellParticipant@jason-tyrrellJoin Date: 2016Post Count: 6]

May 20, 2016 - 2:05 pm

Hi Raftim,

Others have covered off on most things to consider well.

But renting where you want to live, and investing where you think you will get the best results makes perfect sense.

Cheers

Jason

Jason Tyrrell | Turning Point Finance
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[Jason TyrrellParticipant@jason-tyrrellJoin Date: 2016Post Count: 6]

May 13, 2016 - 11:27 am

Keep some powder dry for great buying opportunites which will present themselves over next couple of years.

If you had 10 as a long term goal, the quicker you get to 5 isn’t necessarily going to be the quickest way to get to 10.

Jason Tyrrell | Turning Point Finance
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[Jason TyrrellParticipant@jason-tyrrellJoin Date: 2016Post Count: 6]

April 1, 2016 - 11:35 am

The two rates are inversely siding to a mean of 4.25% (average of 5.99% and 2.5%). Will depend on the weighting of the two loans of course.

4.25% is ok but can and bettered. Can’t comment about fees and possible traps in the loan contract, maybe making it hard to re-finance.

An Inv loan would be I/O and O/O would be P&I. It suits them to have the debt remaining at 5.9% for an investment loan (very high), whilst O/O debt is gradually eroded.

As the P&I erodes, the impact of the lower rate for this loan becomes less important. If 20% of your debt is 2.5% and 80% is 5.99, your overall rate at the time will effectively be 5.3%, which is not competitive.

Also, tax benefits hard to know without details such as your anticipated tax bracket (inc rental income) etc. Like any gearing, it is only a refund of 20-48% of a 100% cost.

More questions would have to be asked.

• This reply was modified 8 years, 1 month ago by  Jason Tyrrell.
• This reply was modified 8 years, 1 month ago by  Jason Tyrrell.

Jason Tyrrell | Turning Point Finance
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[Jason TyrrellParticipant@jason-tyrrellJoin Date: 2016Post Count: 6]

March 19, 2016 - 9:49 am

Hi Richard,

That is probably best for him to answer in terms of what he sells and why. I know that as a buyers agent he also looks for established property for purchasers.

I know that our mutual client has achieved equity growth since purchase in 2014 and settlement last year. Which vindicates the purchase price. I suppose if seller is confident of getting a good yield anyway, then guaranteeing it is not much to sacrifice. Many of the early sales can be at a good price to get volumes up and then re-assess the final sales.

Anyhow, if someone was to speak with him and not like the answers to such questions or more, that would be up to them.

Cheers

Jason

Jason Tyrrell | Turning Point Finance
http://www.turningpointfinance.com.au/
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[Jason TyrrellParticipant@jason-tyrrellJoin Date: 2016Post Count: 6]

March 18, 2016 - 3:24 pm

Hi Kirsty,

I know someone who is a Buyer’s Agent in Sydney, who also sells new property in Sth East Qld. We met through a mutual client who bought a new townhouse in the Sunshine Coast. It sparked my interest and he sells around that range, or a bit more with a guaranteed rental yield of 6% or more for 2 years (this time period can be negotiated).

Please let me know if interested.

• This reply was modified 8 years, 2 months ago by  Jason Tyrrell.

Jason Tyrrell | Turning Point Finance
http://www.turningpointfinance.com.au/
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[Jason TyrrellParticipant@jason-tyrrellJoin Date: 2016Post Count: 6]

March 17, 2016 - 10:41 am

dana_c_83 wrote:

And would you recommend they be negatively or positively geared?

This will depend on many factors, but as a positively geared property is making you money instead of losing it, it is often the best way.

The concept can be misunderstood, it is essentially a tool which retrieves some of an investment loss. Not something which should be a goal from the outset.

It seems as though you have good equity but servicing may be more of an issue. In which case it would be a good strategy to search for a property with a good yield either cash flow positive, or near enough. This will underwrite capital growth in any event, and also assist you with further purchase options. Someone on the highest income bracket and not much equity, seeking an investment property would look at it differently. Something with anticipated strong capital growth potential, but not necessarily good rental return may be more appropriate. Even then less tax is only paid because less money is earned, so not a good thing in itself.

The key thing will be structuring your loans correctly, taking into account tax implications and flexible options moving forward.

Jason Tyrrell | Turning Point Finance
http://www.turningpointfinance.com.au/
Email Me | Phone Me

Finance Strategist and Investor