If your value is $220K, the bank will lend you 80% of that, which is $176K.

So if you make the whole loan a LOC, the ‘limit’ will be $176K, and you will ‘owe’ $114K (plus the costs to set it up). You don’t physically take the money, and then pay it back. It’s just like an increase on the limit of your credit card. It’s just there!

The second…[Read more]

sis

there have been a couple of posts on this topic. One ‘ballpark’ figure, and I think one of the Josh’s posted one that he learnt in a finance class. Sorry I can’t remember when/where, but they have been in the last month if you want to do a search for them.

Cheers
Mel

Riffraff I think you’ll find that crashy was in strife for advertising his course for sale – completely different.

I think most of us picked up that yours was not at all ‘hypothetical’, and hence caused us to answer.

A LOC is like a personal overdraft – or a really big credit card. You have a limit, and if you spend the money, you pay the…[Read more]

Hi Phil and welcome to the forum, and the world of investing.

The 11 second solution is just a filter that Steve uses to weed out the unprofitable houses, or just to cut down the number that he looks at. You’ve got to remember that his aim was to buy many, quickly, and so they all had to pay for themselves quite well from day one. Plus, it was…[Read more]

Hi all Canberrans

Anybody interested in meeting up again?

Cheers
Mel

Arty, I’m surprised your kids had the restraint to plant rather than to eat!! I know we didn’t as kids, cos chocolate was a very rare treat! It used to take me months to eat my easter eggs, especially ones that came as big ducks, or anything like that.[]

Cheers
Mel

Judith, re selling your PPR, grab Bill’s ideas and sell it yourself! That should speed up the process.

I think you need to ‘go with the flow’ in regards to your plan. As long as the deviation isn’t 180 degrees, or even 90, and you know that it’s a small step on the path (maybe smaller than your plan allowed, but hey you’re moving forward…[Read more]

I agree Paul. I don’t know about any inner circle – or maybe I haven’t been invited?

I feel that I’ve got to ‘know’ a lot of people on this forum through posting, and reading others posts, but the more stars represents the number of times you’ve typed a message, not the number of properties you own. Just ask Arty, he’s said quite a few times…[Read more]

Fellas, aren’t there ‘redraw’ facilities still around?

Bill, I know a lot of people who do not like LOCs, not least for the fact that you are ofte charged a higher interest rate, and a higher monthly fee. Full offset accounts, or redraw facilities (although there is a fee to ‘redraw’) serve the same purpose with perhaps less fees…[Read more]

Thanks for that Terry. So it looks like you can still rent from a discretionary trust and negative gear, but have to carry the losses forward against future income.

Also, it only says that if you are the trustee or the director of corporate trustee. What if, for example, my family’s unit trust had some friends as trustees? This scenario I…[Read more]

Hi Myydral

You need to contact a quantity surveyor – somebody like deppro or many of the other ones out there, they will prepare all this for you!

Cheers
Mel

Sigh![]

If you guys only read the posts properly it would have been easy to ascertain that I said it. shaun, you even copied it!!

‘young at postings’? What else can it mean but relatively few postings compared to the others that Muppet listed?

Cheers
Mel

riffraff you can indeed rent a house off your own trust. However, if it is ‘negatively geared’ the trust losses cannot be passed down to yourselves (unless a unit trust I think and then the ato might want a closer look). Any losses must be carried forward in the trust.

However, it can offset (again I think!) other income losses the trust is…[Read more]

Nope, no CGT on refinance. CGT is only payable on Sale or Transfer. Refinancing $$ are not taxed in any way, which is the beauty about the growth.

Cheers
Mel

Welcome to the forum Coondoo.

There are several ways to get 100% finance that I will list off the top of my head. Hopefully otheres that read will add to the list.

1. Use equity in other house/s you own to provide the deposit and costs, and borrow 80-90% on the investment.

2. Have a ‘partner’ who puts up the money. None in for you, and half…[Read more]

Hi Yezzum and welcome.

I’m not sure about NSW, but it’s my experience that the bond collected can be ‘up to four weeks’, so six wouldn’t be allowed.

As to pets, a LOT of landlords have a no pets policy. I suggest the first question you ask either private landlords or real estate agents is ‘will i be allowed to have cats?’ There are some out…[Read more]

On a place I’m looking at that is $60K, the rates appear to be about $1300 a year, so it could be a correct figure. Mine’s a massive block though, so maybe that has something to do with it.

Cheers
Mel

Still in school, I am having trouble reconciling with this post and it’s truthfulness regarding the 20 properties when you have just posted in the General Investing Forum the following:

quote:Count me into. 21 years old 11 IP, aim for 17 IP before the year ends, only been investing for about 8-9 months as well.

I am happy to help, but at the…[Read more]

Thanks for that Chris.

Cheers
Mel

Terry, I think you might find that there will be a summary sheet in future versions.

I massacred Fudge’s spreadsheet and sent it back to him. Part of that included a summary, but we have to work on making it so that it works for everybody. Because Fudge’s strategy is quite not unique, but not ‘universal’, we need to have a think how to…[Read more]