[MrDarcyMember@mrdarcyJoin Date: 2011Post Count: 21]

August 16, 2011 - 2:41 am

Jamie M wrote:

Also, you might find these links helpful during your search http://www.passgo.com.au/property-data-websites Cheers Jamie

Jamie, I checked your site and thats a great resource.. Thanks for sharing

I also use, onthehouse.com.au and investsmart.com.au (not sure if they are mentioned elsewhere?)

I wouldnt rely solely on the info but its good to help assess initially.. Free too!

Cheers

Darcy

[MrDarcyMember@mrdarcyJoin Date: 2011Post Count: 21]

August 16, 2011 - 2:17 am

Adam

Another point to add as bumped on above is that the doom and gloom can be 'insured' against as well (in a want for a better term..)

Say YOU would consider the market dropping 10% then that just becomes part of your purchase strategy (one above of 40% would take a pretty massive bubble burst!) Just allow for it on the way in.. if it doesnt happen you have made 10% upfront for Eg.. 

Always be aware, go into it with eyes and ears open and you can also use the doom as leverage on getting a better deal..

You will learn more from the minute you begin and generally every time after that something will be different..

last point, Im assuming your young? therefore your main advantage is time, so buy right and just sit tight..

Soon enough it will bear fruit or at least be neutral..

A solid rental should sail through all the uncertainty..

Good luck

Darcy

[MrDarcyMember@mrdarcyJoin Date: 2011Post Count: 21]

August 16, 2011 - 1:59 am

[/quote]

Hello Mr Darcy

Be aware if you  are going to refinance to ANZ, they are giving a $1000 cash back for making the switch.  This is available either by going direct, being referred or via brokers. [/quote]

Checked out your site Kane..

pretty neat!

[MrDarcyMember@mrdarcyJoin Date: 2011Post Count: 21]

August 16, 2011 - 1:53 am

Yep we are taking that up as well..

A win win really.

Cheers

~ Thought as it was mentioned above I wouldnt repeat..

[MrDarcyMember@mrdarcyJoin Date: 2011Post Count: 21]

August 16, 2011 - 1:26 am

I am moving from Commbank to ANZ as per the above statements and with 1% off over 700k id be keen to see if that doesnt sway the sour taste..

Sorry to be blunt but money is money at the end of the day and I can assure you CB wont be any better..

I was going through a split with my wife and they printed copies of all of my statements in a branch and handed them over to her.. Then also charged ME for it.. (I had two days earlier marked all accounts with a note saying that she was removed from all access!!)

Needless to say this didnt help in the finance split!!!!!!!

At the end of the day people make mistakes and I still use Commbank..  I need them to continue the journey!

I'd give ANZ a go.. Its a good deal and if investing is what your into, It should be the overall focus..

If I was fleeced 40k by a bank mistake, Id be getting it back or taking it further

But if your business partner has let it go, maybe you could too?

At least crunch the numbers on it 1st..

Cheers

[MrDarcyMember@mrdarcyJoin Date: 2011Post Count: 21]

August 16, 2011 - 1:09 am

Point taken.

I agree if the initial loan is PPOR it is a negative, KYZER is now using old PPOR as IP so I was reffering to this.
If they had it set up initially, is the new portion/redraw deductible against IP? lowering the loan on the PPOR upfront? paying down PPOR quicker?
 
You are right about the naming of the products (most banks call them different things? and I cant keep up)

I think overall the point has been made to look at it further if it suits the situation ..

And also agree – care always needs to be taken!

Sorry it took a while to get there!

[MrDarcyMember@mrdarcyJoin Date: 2011Post Count: 21]

August 16, 2011 - 12:49 am

I know your decision is made and looks like its a good choice..

One thing id like to add is its a two way street..

I have a great relationship with my broker and without him I wouldnt have got a start when I did.. (and wouldnt be where I am now!)

The big banks all said no, I was 19, and I had no idea of the possibilities.. I had no experience, no one to get info from etc..

He made it happen!

I now know what is avail as i am interested, keen, passionate about property etc but I still prefer to have someone to help crunch numbers and keep an eye on all things avail to me as a client, and it opens up additional channels of networking as well.

I dont and wont pretend to know everything and a broker as a resourse is priceless (if its a good one)

A bank wont ring me and tell me that someone are offering me 1% off standard variable over 700K and paying fees and that I should switch this loan and that but keep the fixed ones here and an LOC there etc etc etc

Also a mate tried to get an offset on his IP and spent a whole day visiting banks as he didnt want to use a broker and still didnt get what he wanted..

Thats his choice but I know I can reno, inspect property, play golf, go to the beach in the same amount of time.. Its time that Id rather use elsewhere..

I now know whats required for each purchase, I can crunch my own numbers and just sort out the paperwork when its ready..

Whatever works I guess!

Cheers

~ Good point Jamie!

[MrDarcyMember@mrdarcyJoin Date: 2011Post Count: 21]

August 16, 2011 - 12:19 am

Hi Terry

Im not a finance guru so its just a FYI Comment for other readers to keep in mind but ill try and clear it up..

If I pay my principle & interest off like the banks make mum and dad investor believe is the best thing to do, then I have equity to release in a few years time by either borrowing with a new loan.. etc

The problem is that all the $$ paid off the property when "redrawn" arent tax deductible against that property even if they own it outright, only the portion of the $$ used as a new investment is deductible (for a new IP deposit etc)

What I believe to be the case (someone please correct me if im wrong) is that if you pay into a redraw facility/offset account (offset your interest on the IP and reduce the loan at the same rate etc) The $$ that you redraw are then deductible as per the initial IP purchase/total loan amount..

Its just something I think is worth considering when people arent highly leveraged and are able to pay down debt..

Hence its no good to me at this stage as its IO all the way..  im just setting it up for future strategy to buy PPOR outright..

Let me know if there is anything in particular and ill do my best..

Cheers

[MrDarcyMember@mrdarcyJoin Date: 2011Post Count: 21]

August 15, 2011 - 11:55 pm

A late addition to the thread

Thought Id add here for other readers looking into this topic- (im sure its elsewhere on the site)

It shows the importance of using a Redraw facility for IP's instead of paying the principle directly.

The many people that I talk to with just 1 or 2 IP's dont understand that when it comes time to borrow for another property (IP or PPOR) the interest isnt deductable against the initial IP..

A big trap for the taxman to hang you on..

Keep up the great work everyone!

Darcy

[MrDarcyMember@mrdarcyJoin Date: 2011Post Count: 21]

May 26, 2011 - 8:39 am

Marie
 
Im pretty sure that Buffet has a different opinion on fear and greed but its up to you to interpret..

By the sound of it, you diversifying means you have a few IP's and wish to sell one to take profit and use it elsewhere? (shares etc?)

If this is the case the property that you are selling would also have equity would it not?

Borrow the equity thats available, have a safe buffer for any bad times that you feel may exist in the near future, continue with the advantages of gearing and invest the rest to diversify as you feel the need..

If you sell for the wrong reasons it has the same impact as buying for the wrong reasons..

Do all your research first, Profit to me generally means another deposit.

But im currently Greedy as most others are Fearful!

EV

Thanks for the reply, I still wonder how you went house > units > commercial/other?

Was this a suggestion by the Property Buyer?

Im glad your happy with his advice its good to know for future reference..

As for the US property, keep us posted!

[MrDarcyMember@mrdarcyJoin Date: 2011Post Count: 21]

May 26, 2011 - 8:07 am

Rent Vs sell

Hi

If you rent it you can sell it later..

if you sell it – its gone!

Id get it on the books with the RE this FY if possible?

Sort out the rest after its all settled, depreciation, tax etc etc with an accountant

After that if your going ok with it all i'd see a Fin Ad about where to go from there..

[MrDarcyMember@mrdarcyJoin Date: 2011Post Count: 21]

May 26, 2011 - 7:53 am

Hi Danviv

Just a tip, I wouldnt use a handy man for any electrical.. Lights etc

You say after that " they have to be qualified etc" and im sure thats what you meant..

Its not worth the hassles if something goes wrong!

Just make a list and get them there once, when its an hour here and an hour there its pretty exxy!

Another tip, generally if you get a good tradie, say a plumber, he will know a good leco etc etc so ask around and get quotes!

[MrDarcyMember@mrdarcyJoin Date: 2011Post Count: 21]

May 26, 2011 - 7:15 am

Why not try 20% LVR 1st? Keep the rest for the next opportunity..

A broker should be able to tell you straight away if it will be ok or not, Id try that before going near any bank..

the rest of the $ you have for a deposit will only be repaid over a long period of time and that doesnt make sense to me as an IP

I guess it depends on how many you wish to own in your strategy..?

[MrDarcyMember@mrdarcyJoin Date: 2011Post Count: 21]

May 26, 2011 - 7:07 am

Hi

Im doing exactly that now.. I cant afford to buy and pay down where i want to live at the moment so i pay rent..

this allowed me to keep all of my properties and focus on saving further for my dream PPOR (which i intend to buy and still rent where i am until I can afford to live in it comfortably, 2-3 years)

If its not your dream home why waste the benefits of – gearing just to live there? But I wouldnt sell unless you have to..

With the extra you save from renting, offset on one of the properties to help get it to neutral ASAP, can always use it to buy PPOR ot IP when your ready..

It took a while to get used to it not being mine but thats just the social pressure/stigma that we are raised with..

It also gives me a nice place to return home to instead of living in a 1/2 reno'd place (I have one on the go now/always..)

Ive done it tuff, now I dont need to..

Nothing wrong with renting!

[MrDarcyMember@mrdarcyJoin Date: 2011Post Count: 21]

May 26, 2011 - 2:17 am

Or contact integral and ask if its sticking around long term..

might be a bargain if it dissapears in the near future..

As for radiation, unless its got the Phone network arials hanging off it its just going to annoy you when its moist.. (some get all crackly so check it on a rainy night!)

If not – as a rental would it affect the rent? as a PPOR its your decision, you have to live there..

My suggestion if you can live with it – Negotiate hard or walk away..

[MrDarcyMember@mrdarcyJoin Date: 2011Post Count: 21]

May 25, 2011 - 2:26 am

Well put empty vessel..

Can I ask why you chose to invest in the unseen IP2 and units as IP3 (was the risk worth taking?)

Was this the plan when you set out initially?

What is the future plan with IP 5? You mention commercial or US are you diversifying with each IP?

Just trying to understand your strategy..

Marie as for sticking to a strategy if it works thats always a good sign to stick with it! also areas of experience..

You wont generally know this until you do it and the final numbers are in (actual yield, bank value, total costs etc etc)

I wouldnt go taking on massive reno's as a strategy if you dont know the pointy end of a nail.. etc etc

There are horses for courses and you will probably already have a flavour in mind..

My best bit of advice is dont freak out, time in the market is your best friend (I havent sold any and im pretty happy with most of my decisions..)

You will learn more by trying/starting than any book or course(not that these are bad!) unfortunately mistakes will be made..!

My personal opinion is, if $$ isnt an issue there is no stress and all issues have a solution, if you try and stick to an unrealistic budget from the start things will become very stressful..

Research well, the tools are available (mostly free too), and make as much as you can during the purchase!

Cheers

[MrDarcyMember@mrdarcyJoin Date: 2011Post Count: 21]

May 23, 2011 - 7:28 am

Hi Guys

Im not involved in WA but dont forget to negotiate the additional 1-2 weeks rent upfront as well, if your property is rented for 500+PW it can take a while for 0.5-1% to pay back.

If you strip that at the start its $ in the bank sooner!

Watch out for admin fees too.. arrange to have statements emailed and cut out the fee altogether!

I agree, the more you have the better you can negotiate (works with quality of property too)

[MrDarcyMember@mrdarcyJoin Date: 2011Post Count: 21]

May 23, 2011 - 7:19 am

Skyes

Dont just look to banks to turn your hard earned into additional deposit $$..

There are other options..

If you know of a financial planner or can find a great one they will help you out..

It will make more sense from them in person but if you have cash you have the ability to turn it into a deposit quicker than bank interest..

Nothing comes for free and the bank is the least risk option, but at your age your risk is mainly time..

You never know, you might get there sooner than you thought and not have to pay the MI on the loan by having a bigger deposit..

Ps.. Always take Gov handouts! dont be silly..! money is too hard to earn not to take it for free!

[MrDarcyMember@mrdarcyJoin Date: 2011Post Count: 21]

May 23, 2011 - 7:05 am

Im really sorry to hear that!

Im guessing you dont have landlords insurance?

Does the bond = half of lost rent? so total is only 4 weeks rent?

My opinion starts here –

I wouldnt rely on any property manager, do what you can to find them yourself.. the mail will still go to that address and you might be able to get a forwarding address from the PO? Your prop manager will only go so far with investigations as they continue to get paid either way, it sounds harsh but id also consider getting another manager as tenant screening is a critical process to keep quality IP.. Ask around your area and get some feedback before choosing one..

I'd concetrate also on filling the vacancy ASAP so you dont lose any additional income (if the property was left satisfactorily) has the prop manager had people through yet?

There are bad eggs everywhere, depending on your location and potential tenants you can consider rewarding on time payments with movie tickets etc each 1/4 that way they pay on time every time and if they dont you know something is up.. If it falls behind you call and ask if everything is going ok..

Each to their own but id prefer long term happy tenants for $30 1/4 on the books through the RE!

If they are tight with $$ they know they have something to look forward to as well!

Interested to hear how it goes..

[MrDarcyMember@mrdarcyJoin Date: 2011Post Count: 21]

May 23, 2011 - 3:31 am

Hi BlueHoon

I might suggest that you are in a great position.. Keep your head up!

It may not seem like it and your "bad" debt might be tough but ill add to the others comments as best i can..

       You have a -Geared property so therefore your Tax return is just around the corner.. I suggest this goes into your debts one at a time to get rid of them completely.. (lowest loan amount vs highest interest rate..!)

You also are able to make the payments on the bad debt and therefore once its gone have room for additional good debt..?

You are like me and learn the hard way, but your budget is now sorted, (whether you know it or not) you now know what you need to live off and the rest is paying off all the loans..

In future this will only change from "Bad" to "Good" and wealth will create itself if given the right opportunities..

Now the hoon part.. As a self confessed hoon ill add that valuable hands on experience starts with cars.. you learn that anything is possible, fixable and of course if you pay others its expensive.. also great for learning to negotiate a great deal!!  use this knowledge, transfer it to property and your on a winner..

Learn from this experience and you wont end up in it again..

You really wont like this bit and it depends on the car but if you sold it and paid off the loan.. Then made 100k on property, would you buy the same car back? If not, sell it and wait until you buy what you want later for cash!! (this will be hard to swallow)

If needed you can get your tax back weekly next FY and use the extra each week to pay off your debt sooner..

By the sounds of it you are probably best to do it tough and kep your return next year as a part deposit in your next IP.. (forced savings)

Hope that all makes sense..!

Im a dumb leco so any financial advice is from experience only.. Get paid professional advice!!