[JonParticipant@johnny99Join Date: 2005Post Count: 36]

April 22, 2016 - 12:42 pm

Thanks for the replies, seems like a asking a few fake questions from a web email address is worth it. Also I have been caught out by “Fake counter offers”. I noticed some properties that I offered on that had been on the market for 6 months or more suddenly got higher offers (according to the agent) just at the same time as I made my offer. Where they real offers? No. One property I called the owner from the Statement 32 and asked how many offered he had got and he told me he had only one offer, mine. Don’t believe anything you are told, especially if its over the phone as they know they can just deny saying it later.

[JonParticipant@johnny99Join Date: 2005Post Count: 36]

April 5, 2016 - 9:29 am

Thanks for the replies. Just got another Vendor’s Statement on a different property with the details crossed out. The last one I asked the agent for the original and haven’t heard back – that was three weeks ago. Seems foolish to doctor the vendor’s statement like this. I know they are wildly off valuations, but there is cause for concern. My mother and law protested about a high valuation on the family farm and was paying very high rates for years. They reassess the value lower and now the rates are much lower. So I personally won’t accept doctored vendor’s statements.

[JonParticipant@johnny99Join Date: 2005Post Count: 36]

April 3, 2016 - 3:18 pm

Hi the New Guy. I have read books about people who live off the equity increase from their ip portfolio. But with the new lending rules it would seem very hard to get refinanced if you don’t have any job income? With some lenders not taking all or even any rental income into account now it seems like a hard task to live off equity unless you have huge rents coming in?

[JonParticipant@johnny99Join Date: 2005Post Count: 36]

March 31, 2016 - 10:00 am

I think what you look for depends on your earnt income.

As a school teacher I have to look for a positively geared property, a negative one would hurt a lot.
Also I really think the Dsr scores are an interesting development. In addition I think you can have positive cashflow and good capital growth. Too many people think you have to choose, but it is defiantly possible to have both. I am looking for a property below the median price in the suburb which allows more growth to occur. If you buy the grandest house in the suburb it can take years for the market to catch up.

Spill over areas adjacent to more affluent suburbs are a good bet for me too – they will likely increase overtime when people are priced out of the main area.

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

[JonParticipant@johnny99Join Date: 2005Post Count: 36]

March 13, 2016 - 6:37 pm

Government revenue from stamp duty will fall in they take away negative gearing. Less property changing hands will mean much less stamp duty pouring into the government.

[JonParticipant@johnny99Join Date: 2005Post Count: 36]

March 9, 2016 - 5:58 am

Thanks for the replies. I was reading a book by Dolf de Roos and he was saying as a real estate professional you can claim 100% of expenses against your income if you were considered as having a business rather than just your marginal tax rate. He is a New Zealander but seems to be speaking more about the US market in this book (Real Estate Insider).

[JonParticipant@johnny99Join Date: 2005Post Count: 36]

March 2, 2016 - 2:08 pm

NAB do this too; the loan statement will say something like ****Interest rate from Jan 1st will rise to 4.45%**** and that is the only notice you get. Agreed it is very unfair.

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

[JonParticipant@johnny99Join Date: 2005Post Count: 36]

February 18, 2016 - 8:53 am

Thanks for the replies. Another reason why this strategy would be good for me is that I often do a few years of contract work then have a few months break between new contracts. Having little time to look whilst I’m working means those few month off are a great time to find new investments, but by being between contracts I would have to use my own funds. Thanks

[JonParticipant@johnny99Join Date: 2005Post Count: 36]

February 17, 2016 - 7:14 pm

Hi there, thanks for replies. Well just spoke to loans.com.au and they said they would not mortgage a property that had been bought outright unless it was within 3 months of purchase due to their “responsible lending criteria”. So I wonder what lenders would look at it?

[JonParticipant@johnny99Join Date: 2005Post Count: 36]

May 3, 2015 - 7:29 pm

Thanks Richard, will give you a call Monday!

[JonParticipant@johnny99Join Date: 2005Post Count: 36]

August 9, 2014 - 6:34 pm

Tools,
Several thousand dollars in opportunity cost as I have passed on property deals as the home loan equity release has been delayed over a month.

[JonParticipant@johnny99Join Date: 2005Post Count: 36]

July 4, 2014 - 12:27 pm

Hi there, thanks for the replies. My existing properties are in Mildura and Horsham. With the rental income my total income would be approx $100,000. My wife earns similar money to me but as yet her name is not on the house. They are putting the money in a separate offset account, so no interest payable until its spent. My strategy is to replace my teaching income with rental income and then move full time into subdivisions and developing. My rule is three cashflow properties to one capital growth property, which is my current ratio with the capital growth one being my PPR. Lots to think about! Thanks for help so far.

[JonParticipant@johnny99Join Date: 2005Post Count: 36]

July 2, 2014 - 7:12 am

If you got a say 0.5 PA% discount through an online provider (my online provider charges 4.49%) over a bank like say National (NAB charges me 5% pa on PPR) over 30 years you would be saving approx $60,000 on a $400,000 property home loan. Online providers can have acceptable structures too, just do the due diligence.

[JonParticipant@johnny99Join Date: 2005Post Count: 36]

July 2, 2014 - 7:03 am

Hi there, thanks again for the replies. The IP settled on time. In the end was arranged for the seller to give us back $5000 in the settlement adjustments so a reapplication may not always be necessary when you negotiate a lower price after signing contracts.
Cheers

[JonParticipant@johnny99Join Date: 2005Post Count: 36]

June 9, 2014 - 8:20 pm

The loan provider is http://www.loans.com.au. They said they would have to reorder the valuation which takes a few days to get. They move slow but had a 4.48% pa rate which is the best ever in Australia I believe which was the motivation to go with them. Will touch base with them tomorrow and ask if it would b achievable in the time left. Thanks

[JonParticipant@johnny99Join Date: 2005Post Count: 36]

June 9, 2014 - 2:06 pm

Thanks for the replies!
I advised my lender and they said officially they would need to restart the whole loan application process and the only way around this is to get the vendor to give me a cheque for $5000 on settlement. As settlement is in two weeks we are hoping to get the cheque from the seller but I guess it would be hard to ensure this happens. I am trying to get my solicitor to get them to sign something saying they will give me the cheque, but my solicitor has said “there is no guarantee they will accept”. Not sure why my solicitor is acting like its a big issue (the seller already agreed to the lower price), but waiting to hear the latest after the long weekend! Fingers crossed…
Cheers

[JonParticipant@johnny99Join Date: 2005Post Count: 36]

June 1, 2014 - 4:37 pm

I have bought two properties since November 2013 and settling on another this month. Want another two buy this time next year. All positive cash flow properties at the moment. I am a teacher so haven’t the cash to subsidise negatively geared ones at the moment.

[JonParticipant@johnny99Join Date: 2005Post Count: 36]

June 1, 2014 - 4:29 pm

Now sold thanks

[JonParticipant@johnny99Join Date: 2005Post Count: 36]

May 17, 2014 - 1:13 pm

Apply online, much easier, no waiting in branches etc. Also the online only providers nearly always have better rates.

• This reply was modified 9 years, 11 months ago by  Jon.

[JonParticipant@johnny99Join Date: 2005Post Count: 36]

May 13, 2014 - 8:11 pm

No mention about negative gearing in budget unless my live feed missed something?!