If they've closed up shop there's probably not much you can do.They have probably declared bankruptcy for that company.Lesson learned; don't go for rental guarantees; they are usually built into the price of the property when YOU buy it, and it is usually above market rent, so when it runs out in 2 years, you are left with a property that rents…[Read more]

Suck it up, knuckle down and spend NOTHING for a year or two, live on second hand furniture and no restaurants and so on, pay down the bad debt, cut up the credit cards, hold the property and get a tenant in there.You can convert the loan to interest only to ease the cashflow strain (if you haven't already done it) and then pay the minimum off the…[Read more]

If your loan allows you to make redraws, or there is an offset account attached to it, then I would throw the whole amount on the loan and decrease the debt, and you will be able to access it for another IP when the time is right.If not, maybe pay $40k into the loan, and keep $10k in a high interest on-line account such as ING Maximiser. This will…[Read more]

By the time you sell all the properties and pay all the selling costs and cap gains tax, then invest the rest in a cash account and pay tax on the interest, plus losing any capital growth that you might have got in the properties while your capital gets eaten away by inflation in the Bank, I'd say hold 'em.

EljayC wrote:
Hi everyone,I am very new to this site and all this finance stuff. Was not sure where this post belonged so chose this one, hope I got it right Here is my dilemma, any suggestions/comments most appreciated.I have been asked if I want to relocate with my job from Canberra to Newcastle.I have a property here in the ACT which has a…[Read more]

Jon is correct.As well as this, the problem now is,  there is a bit of interest between you and the (supposed) other purchaser. If this is true, then the Vendor is possibly thinking; "gee; with all this interest, I would be mad to accept an offer before the auction".So, are you gunna spend more valuable time working on a property that may go way…[Read more]

Is the $210 offer unconditional?If it isn't then you could make an unconditional offer of $205k, and maybe a shorter settlement – 30 or 60 days.Of course; you would want to make sure you CAN go unconditional when you offer.But as this is an IP, there should be no emotion involved in your offers; the numbers need to work for YOU, and if the offer…[Read more]

Yeah Richard;it makes me sick.That's why I think it is imperative that the more experienced forumites get onto these posts quickly to alert the newer forumites to the (possible) dangers.

Sorry everyone; I just realised that they made only $1,000.$20k profit on the before valuation to the sale price; $330k – $310k = $20k.Then deduct the sale costs of around $9k, and the reno costs of $10k = $19k.If they had to do all the hours themselves and had no help from Action Squad, that's $1,000 for probably 3 months of no weekends and dirt,…[Read more]

Crommie wrote:
Neauro Linguistic Programming, its all to do with how you communicate with yourself mentally and how to get the most out of your thoughts to empower you to do am become what you want in life

Oh, yeah; sort of like having a positive attitude and believing in yourself.There you go; I just saved you hundreds (or thousands?)

Matthias88 wrote:
I think they have 10 hours… don't quote me on that though… And the have about 15 or so people working for them. the peoples wages are not incorporated into the budget.

Who pays the other workers?It sounds like a reno organised by the TV program?

So, they spent $10k on the reno, probably about $8k to the agent, plus other costs to sell – let's call it $19k all up.Maximum profit of $11k.WOOHOO.How long did it take them? The question would be; how many actual hours did they spend on it?Then divide the hours by the profit to get the hourly pay rate.

A  property that returns 20% in today's Aus r/e market?Nope. It's a scam.Maybe a listed property trust may do it; but not direct property.I guess if you added the rent return and the cap growth together you can get 20% return.If you have any cash, and have non-tax deductible debt, then clear that debt. So, the PPoR, and/or other doodad loans.Try…[Read more]

AAQ wrote:
Hi Guys;Thanks for the comments , my wife is just going to love it. That was her opinion.These sort of lump sums do not come along very often (ever) so I was hoping to do more with it than continue paying off the mortgage.I'm still open to anyone brave enough to suggest anything else!

The two wisest heads have spoken!So, no need to…[Read more]

Forget the Leap Year. It's a weekly rent; not daily. Have you ever seen a property with a permanent rent advertised by the day?Just multiply the weekly rent by 52, then divide by 12.$200 x 52 =  $10,400 / 12 = $866.66That should be the monthly payment.

In my opinion, only a good strategy if you have a low LVR, and the properties are going up in value consistently.Even though the interest is tax deductible, it is still an increase in the debt.The idea is to make sure the property values are going up by more than your drawings on the equity.Keep a close eye on the property values and the LVR.

How long did you own the property? If it was more than 1 year, you are only up for tax on 50% of the gain.Many accountants are not pro-active unfortunately; they sit back and wait for you to come to them with ideas etc. I'm surprised there has been problems for 14 years; didn't you say something?Also, after you find a NEW accountant, ask them…[Read more]

What's NLP?

AdoubleU wrote:
Thanks for your response. Well you didn't just give me a flat out NO CHANCE! lol … thats a start Yes, the property is intended to be an investment property. I was thinking, would it be a better idea if I partner up with somebody? To gain access to another income or even equity in an existing property to use as a deposit.…[Read more]

If you've just joined the workforce and are still renting, I assume you haven't got much of a deposit together yet?If this is the case, I'd suggest that while you are saving, keep reading lots of books etc, there are a few posts on this forum about which ones to read. Use the search button in the top right hand corner.But back to the finances;…[Read more]