Forum Replies Created
Hi all!
I just had a flash of insight. I blame Michael Yardney, as this idea is from his new book.
I’ll put figures in here to see if they make sense.
Current loan on our apartment is $265000. Previous valuation is $365000.
Therefore, this would be an LVR of 72.6%.
Drawing this up to 80% LVR would give us $27000 to play with.
Now here’s the kicker… put this $27000 into the offset account attached to the apartment and then this can be used to cover any shortfall between rent and mortgage payments.
My wage and my wife’s wage can then go straight into our PPOR without having to worry about two mortgages.
Then get the unit revalued in say 12 months time and use the extra equity generated to get another IP.
Would a line of credit be better than getting a lump sum now that sits in an offset account or is it pretty much the same?
Cheers!
— MJ.
It is easy to get to the top after you get through the crowd at the bottom.
— Zig ZiglarHi Derek!
Indeed! We originally had a split fixed/variable loan with Maxis Loans (subsidary of ING somewhere I think), then broke free of them and went with ANZ.
We have two interest-only loans with two separate offset accounts for each property.
Because of the amount borrowed, the rate is a “special” 6.62% variable. I’d be interested to hear what the mortgage broker’s on this forum think about this rate…I’m not interested in moving financiers again because of mortgage stamp duty among other things.
Cheers!
— MJ.
Originally posted by Derek:Originally posted by mja:The goal is to reduce non-deductable debt.
My wife and I currently live in our apartment, which has a mortgage of 72.8% LVR and is our primary place of residence. We’re building a house that should be ready in the May-June time period this year, that we will be moving into. Thus, our apartment will then be rented out and become an income producing asset.
It is for this sort of reason that a good broker will recommend an interest only loan with offset account.
This way should an individual ever move out of ‘home’ and turn it into an IP then they can either take their cash into the deal or change the offset link so the interest savings are transferred over to their new home.
Not a broker so take what I say with a grain of salt.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113It is easy to get to the top after you get through the crowd at the bottom.
— Zig ZiglarHi Redwing,
Thanks for your comments – I’ve thought about selling the apartment to avoid CGT. But since this is our first property, I’d like to have a bit of experience of actually being a landlord.
Besides, this unit can fetch $380 to $400/week unfurnished.
Cheers!
— MJ.
Originally posted by redwing:Sell the apartment..put profits into your PPoR(value should’ve increasedon both by the time PPoR is completed).use the equity to purchase another IP?
Buy the PPoR as an IP through the correct structure and rent it to yourself..again as above use the equity from the first property to purchase the next IP in the same structure?
How about then using Intertest Only Loans on both facilities reducing your loan payments..?
just throwing some thoughts around..
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorIt is easy to get to the top after you get through the crowd at the bottom.
— Zig ZiglarThanks Terry and Mal for your responses!
I guess it’s not ‘fair’ to claim interest charges on something that isn’t associated with earning an income. Go the tax system.
I’ll probably just use the 7% extra as a downpayment for our next place.
Cheers,
— MJ.
It is easy to get to the top after you get through the crowd at the bottom.
— Zig ZiglarHi all,
Thanks for the responses so far.
Someone I know suggested a creative way to redraw money.
Basically, withdraw the 7.2% out of our unit and use these funds to purchase shares. Thus, the equity has been used for income-generating/investment purposes.
Then, sometime in the ‘future’, sell the shares and and then bank the cash for whatever personal purpose.
I’d then have proof of the share certificate to show the tax office that the money was used for investment. Any reason can then be used for the sale of the shares.
Would this work?
Cheers!
— MJ.
It is easy to get to the top after you get through the crowd at the bottom.
— Zig ZiglarHi there,
Some food for thought – I live across from the Vision site in River Park Central, so I have a pretty good idea about Vision Tower.
It’s going to be pretty special – it will draw more people to the Mary/Margaret street as the ground floor will have kind of like a mall/shopping precinct. Typically on a weekend this part of Brisbane is fairly quiet.
I doubt you could build out between Alice and Margaret streets without casting a shadow over the Botanic Gardens… so even level 20 should be ok.
Level 20 is the lowest level you can buy residential in. Is it on the Mary Street side or the Margaret Street side? If possible, go for the Margaret street – you may get a view of the river, it’s east facing and you’ll get to see the Botanical Gardens. From Level 20, the Mary Street side is basically facing west and you get a bit of a city aspect.
My guess is that if it’s on level 20, with three bedrooms, then it’ll be on the Margaret Street side and is Design Number Two.
If you want a login to http://visionbrisbane.com.au, let me know. I have insider access. [thumbsupanim]
Issues I have with Vision are the number of apartments per floor – 10 or 12. That is a lot of neighbours! Also carparking will be insane – with the Q1 apartments on the Gold Coast there are daily carpark dramas with visitors and guests parking in resident’s spots.
For that apartment, body corporate fees are a tad under $8000 per annum. That’s insane. I could buy a 2.5 million dollar apartment in the Riparian Plaza building with a similar amount of strata.
Also, 2010 is a really long time to park 92k in cash. Check if it’ll be in an interest bearing account during that time. Just in case.
The alternative is a 5-year deposit bond, which is pretty rare I hear.Hope this helps. A lot of what you get is people’s opinions.
I think the tower is fantastic, but I won’t be parking my money there.
— MJ.
It is easy to get to the top after you get through the crowd at the bottom.
— Zig ZiglarThe building is fairly swanky. The developer only has 4 storage units for sale, and the 7.5 metre one is huge!
I’ll price the storage areas out and ring my possible future property manager and see what she thinks.
Cheers!
— MJ.
Originally posted by Fast Lane:I wouln’t say massively increse the value of your property but it would certainly be of value to someone who needed it. If they need it. A lot of people rent out extra car spaces to other tenants in their buildings, so yes, I believe you’re onto a good idea.
It’s just a balancing act on whether what you could rent it for would be viable to buy it in the first place.
Also if the developer is selling heaps, why pay full asking price? He might be short of a buck and needs to offload. You might even get a bulk discount.
In regards to renting it, check out ‘self storage’ in the Yellow Pages, get some quotes on units 4-7sqm and go from there. As a guess $20pw might be a good start. How swanky is the building???[wink]
…FL
Fast Lane- The poster formerly known as g7
It is easy to get to the top after you get through the crowd at the bottom.
— Zig ZiglarSent a private message to AmandaBS.
— M.
Originally posted by AmandaBS:Can anyone recommend an Architect in Brisbane/Ipswich to help design a Duplex to be built at Raceview ?
Thanks guys,Amanda
“It is better to be inconspicuously wealthy, then to be ostentatiously poor…”It is easy to get to the top after you get through the crowd at the bottom.
— Zig ZiglarFrom realestate.com.au:
There are 41 places to rent at Springfield Lakes right now, ranging from $230pw to $380pw.
And the $380pw is a two storey house.
What’s interesting is that you can easily tell a rental from an owner occupier house. The fittings look ordinary. There’s face brick instead of render on the outside. The tiles in the bathroom only go up 60-90cm high. Oh, and carpet usually is the nastiest, cheapest rugged material…
It’s the small things that count.
— M.
Originally posted by wbg.redcliffe:I have a friend who just rented a house in SL and he said that there were many to choose from. It appears that there is a slight oversupply at present…
By the way this is my first contact with your group and from what i have seen and read so far its a great site…
wbg
Hey Qlds007,
The correct spelling is Maha Sinnathamby. I’ve never met Maha (or know anyone else who has delt with him), so I can’t really comment. He is one of Qld’s richest residents though… $360 odd million dollars of worth.
A quick Google search revealed:
http://www.abc.net.au/queensland/stories/s1283067.htm
I’d be interested in your opinion as to the issues faced with Forest Lake… as far as I know, Delfin have looked after the public areas of the suburb and have recently handed it back over to council, which residents are nervous about (Like the council is going to take care of the public areas as well).
I’d personally wouldn’t buy in Springfield Lakes, considering the number of renters there. But it’s still a nice area to live.
Springfield Lakes, Camira, Goodna, Brookwater… they’re all in Ipswich Shire.
Cheers!
— M.
Originally posted by Qlds007:If you want my honest opinion i would avoid Springfield Lakes like the plague. Forest Lake was another Dalphin development and look at the problems there.
As Mahar Sinithambe the original owner and still the owner of the Orion shopping centre is my next door neighbour i am slightly biased but i have seen the way in which he operates.
Camira & Goodna are really Ipswich and not the most disarable areas to live or invest.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Originally posted by Brent:P.S. – There’s a Free 21-Minute audio recording around where Martin talks more about his development strategy.
It helps to put the video in context – both were taken from this presentation Martin did at a recent MasterClass in Melbourne.
Actually, it’s from the Sydney MasterClass.
— M.
Hey,
My thoughts are below. I’m currently building next to Springfield Lakes in a suburb called ‘Brookwater’.
Springfield Lakes has been around a little while. It’s by Delfin – the same developers who built Forest Lake out of nothing, then started North Lakes (just north of Brisbane).
The most expensive properties at Springfield Lakes have a view of the lake (about 500-600k). It’s got a smallish shopping center already (10 or so shops, including a cafe, Subway and supermarket), with another larger shopping center (Springfield Lakes Metro?) to be built right next door to the existing shops.
Rumour has it that there are about 50% renters to home owners. The homes are generally pretty good in the area, but the covenants aren’t *that* strict. The blocks usually are less than 700sqm.
The biggest shopping center in Australia will just be around the corner…called Orion. Google it. It’s going to be huge. Stage 1 is going to be open in October 2006 perhaps. The University of Southern Queensland Springfield campus opens in March 2006. A railway line is going in by 2009-2012 timeframe.
So, Springfield Lakes is pretty good; there’s still Springfield and Camira next door to consider, as well as Brookwater and Augustine Heights. Goodna is a tad further away.
Check out some of the display homes at Springfield Lakes and ask the builders there which area they would recommend.
— M.
The plot thickens!
My solicitor claims that the seller didn’t disclose the fact that there was a body corporate attached to the property, thus he’s broken the law.
I’ve sent all the paperwork to my solictor who will then calculate the strata due and send the bill to the seller.
I wait with baited breath!
— M.
Hi all,
I’m a Unix System Administrator by trade, looking after largish computers (read: servers) that run business applications, databases, web sites, email gateways, yada yada.
Have recently started a venture building smallish appliance servers running Linux that keep spam and viruses out of small-medium sized businesses.
Still looking at other ways to supplement my income to kick off my property development career!
— MJ.
Yeap – I’ll be there! Flying in from Brisbane too.
— M.
