Tycoon,

As you’re probably aware, Townseville has gone through a significant boom in the last year or two, so you might have to little a bit further afield. Ayr still has very cheap properties. Check them out on realestate.com.au. Go to the Qld map and then click on the Ayr link and see what comes up.

kay henry

tridean

Why don’t you put an ad for it on the somersoft forum? The addresss is somersoft.com and they allow advertisements on their “caveat emptor” forum. You’ll have to provide significant details about it, but that will be good anyway.

If you’re willing to sign a two-year contract with the amounts you’ve stated to pay as rental, I think…[Read more]

Is he the guy who gives a one-year guarantee on his products? That you get 5 times the value of the products or your money back after 1 year? I have to say, that is a hell of a guarantee.

I also checked out some of the products that are said to be free in his package. Lots of books and stuff- decent ones too, I reckon.

Can’t remember if it’s…[Read more]

Mel, you shouldn’t hesitate about joining in this discussion- we’re all rational people who can discuss issues without losing our tempers [lmao]

hehe

kay henry

Given that this Forum is described as:

Heads Up!
Wanted! Posts about websites, books, courses, and any upcoming print, radio or TV matters of interest.

… then I think summo’s post was legitimate. I thought there was only supposed to be no advertising of properties.

kay henry

Just checking out if I’m green enough.

kay henry

No, of course there’s no rights and wrongs between IO’s and P&I’s- it’s all good guess I have been under a misconception that there would be a substantial difference in repayments is all.

the good thing I read in API is that one can make extra repayments anyway on an IO loan (another thing I didn’t know), so that one could actually make an IO…[Read more]

I suggested that the following two options might be getting in over one’s head:

ii) 100% vendor finance. If the vendor will lend you the money, you may not need a deposit
iii) 30% vendor finance. Bank lends 70%, vendor 30

kay henry

Chook,

Your accountant is just doing his job. He wants you to get $10k back because of all your “losses”. If he didn’t “find” those losses, then you would have to end up paying a tax bill due to your “profits”. I guess our accountants’ job is to make us all look like big losers who make bad investments. [laughing]

kay henry

Thanks mr sis! ;O) Yeah, that’s the stat I was referring to, but I think it creates a sense of false consciousness in 2004. I believe that many more % of property investors than 8% of all property investors own 2 IP’s. That stat has been used for years by people to sell books and make out that if you own 2 IP’s you are in the elite. Not so in…[Read more]

Simon said:

“If you know you can afford the repayments then you can easily get a loan to buy another property for about the same value without a job.”

Simon, don’t lenders have bottom line criteria under which they lend? So I could be unemployed and borrow 240k if i have that much equity? What happens when interest rates rise and unemployed…[Read more]

Thank you all for your replies- much appreciated

Actually, I posted those questions and then read about IO’s in the last API mag. from what you all and API have been saying, it seems the difference in the loans are absolutely minimal! Hence, I really cannot see the value in an IO loan (except for hoping for significant CG on any property one…[Read more]

georgis,

The stat that a lot of people use about “only 5% of IP owners own 2 or more properties” etc is a really old one from census data of 1991 or something. I think it’s time to update that, particularly given the property boom.

Actually, I am not sure the census collects data about how many IP’s people own these days.

kay henry

A lot of people (including Steve McK) advocate buying through a trust. That minimizes your taxes to 30 cents in the $. Tax deductions further minimize taxes paid.

Sounds like your guy is saying what many of us say- work out your entitlements, reduce taxable income, and buy and hold. Realising CG by selling means your mortgage broker might have to…[Read more]

tridean.

Perhaps he’s talking about profit from rental income. Given that the guy has “numerous properties” then it is likely he has made a *fortune* of CG over the past few years. So he HAS made a profit- just not one which the taxation office will look at unless he sells.

Perhaps he likes his job and that’s why he comes home from work at 10pm-…[Read more]

sunshine,

I agree. Fact is, if everdine bought the place, perhaps it was at a price which reflected how much the tenants were paying. I bought an IP a few months ago, lease had expired tenants have now moved out. Just got in new tenants who pay $30 more a week than when I bought it! (The new ones are now paying market rent- it’s still cheap). I…[Read more]

Do people think that in this environment of rising interest rates and a more cometitive rental market, that 1 year leases are more and more common? I remember when 6-month leases were de rigeur, but I am certainly seeking one year leases these days- at least then, I can budget/plan for 12 months.

Are other people pushing for 1-year leases too? Do…[Read more]

Desk Top- no job and no savings? You could sell your current IP and buy some cheaper ones with a bigger rental yield. Given that you’re living at home, presumably your outlays are minimal right now. As you’re not working, serviceability might (probably will) become an issue, if you don’t sell up the current IP and resease some cash.

kay henry

wrappack said:

ii) 100% vendor finance. If the vendor will lend you the money, you may not need a deposit
iii) 30% vendor finance. Bank lends 70%, vendor 30

Those are really good ideas, wrappack. But re getting vendor finance… presumably that would be suitable for those with no equity (who could use one of the other options), but my question…[Read more]

Simon (or anyone who can answer),

Is the point of an IO loan that one can buy many more IP’s at the same time? Are the repayments less on an IO loan? If so, how much less are they, say on a $500 week loan?

What happens when you have paid out the IO loan? Do you then have to pay a lump sum to pay out the principle? And how do people do that? Do…[Read more]