Forum Replies Created
- DANIKO wrote:Hi Tony;
I greatly appreciate your help. I will be getting in touch with Yeo, shortly
Kind Regards
DanikoHi Daniko
how did it go with Yeo ? Did you find what you wanted ?
Thanks
Neil
ghotib wrote:….. "other problems to the property" and "any other work carried out to the property". The purchaser says this is part of the inspector's disclaimer.Anyone encountered this before? What did do you do.
I wonder if this is likely to become more frequent ?
I know from experience in the UK, the questions asked are much more wide reaching…
– have you had any disputes with neighbours ?
– when was the central heating last serviced ?
– have you ever suffered flooding / damage to the property etcare all very common questions.
Neil
diggerdigzit wrote:swings and roundabout Neil, but really what ever is going to give you the best return is what you want, which means you need to find stock to buy and find out all outgoings and incoming.I can't speak for everywhere but where i am two properties at 200k each means two lots of body corp fees where as a house can be purchased for 400k. Whats the outgoings going to be on either scenario? this is the stuff you have to find out for your self and make the decisions based on all the facts.
I personally have no problem with going for two cheaper properties if the out goings were acceptable and the area was going to show good growth, but that is probably easier said than done.
Thanks for that.
I guess more isn’t always better. Maybe I’m
thinking 2 might reduce the risk of purchasing
a lemon. But then again, I could end up with
2 lemons!Thanks
Neil
liahayes wrote:Hi Neil!Firstly, I'm not going to recommend you sell your property!!
Lia / Ben
phew – I was beginning to think I was a million miles from reality and the only one in my situation.
You are right Ben, I want to start looking at some financial security, and yes, Lia, I was sort of hoping
that I could use some of the equity in our home as a way to start investing.Hopefully a mortgage / accountant savvy person will come along and offer some advice too !
Many thanks
Neil
Michael4 wrote:i agree with Bharat..if you really want to be a successfull investor you must free up your LVR by either moving into a smaller house or into a unit. Your problem is not the property value that you live in but the ability to borrow because you owe soo much money!
Before you do anything you should know what your short and long term goals are as this will determine which is the best option for you.
One option is to hold on your existing property as you might think that it will appreciate in next boom depending where you live.
Then after you wife starts working in one or two years then decide to buy a positively geared property or very close to being there.
Alternatively you might decide to buy another negatively geared property but you will have the same problem as you are having now.If i was in your situation i will look to maximise my IP portfolio and the profit by selling the property you live in now, move into the smaller house, use the cash and LVR to purchase 2 or 3 IP that are in a booming area and are close to positively geared as possible.
By doing this you will get more rental, appreciation and you will be able to invest after a year or two after again so in 10 years you will be bale to pay most of your IP and have a great rental returns.
Another reaso is the ability to claim depreciation, management costs , accountant cost, reaovations etc.
hop this helps
michael
Many thanks Micheal
Some good things to think about there.
it seems that selling our current property is the recommended way forward.
To be honest, i' am loathe to do this at the moment, so I may have to hold back a year or two before
looking at delving into property investment.Regards
Neil
Rowester wrote:Hi Neil,The company is Compass Finance. I met the director who has a large number of properties utilising the buy/renovate/hold strategy. A strategy which I have always been keen on adopting. In the short space of time that I have been dealing with them, she has come up with a lot of creative ideas on how best for me to move forward with my investments. very happy thus far.
Good luck.
Ian
Many thanks Ian
best of luck to you too !
Regards
Neil
bsgupta wrote:Neil,As wilrose said i too think the mortgage on your PPoR is too much..based on the fact that you are only one earning for the household do u have any plan in case anything goes wrong.. no man its not to scare you but something to think of for sure as they say that we should have approx 6 months of repayments secured before we move onto IP JUST IN CASE…Rest if you guys can get pass emotional attachments to your house why not move to bit smaller house and get same value of loan and keep your lifestyle the way you are except your house you will live in… that way you can get few IP like may be think of moving to 450k-500k house and then buy 2 IP worth 200k each may be neg geared and then build on it. Some thoughts not an expert.
Bharat.
Hi Bharat
I agree with you ! If something happens to me, I guess we sell up, buy something smaller and cheaper and see where
we are then.You raise some interesting ideas, which I will think about.
Thanks again
Neil
wilrose wrote:Wow Neil……you leave me stunned by the amount of personal mortgage you carry on your home: While I appreciate that it will be going up in value, you are working fairly hard I'd say just to pay the tax man, and the bank. What's the long range plan? Will the house ever be paid off? If not, then do you plan to sell and scale down upon retirement putting the equity in a freehold unit or apartment type residence? Would it be possible to readjust your domestic affairs to include a much less expensive home, (with a much smaller mortgage) and then commit the balance of the funds currently funding your personal mortgage, into IP mortgages? My view is that you'd have a larger investment footprint due to the fact that your IP costs (such as exceed your revenue) are mostly tax deductible. You could step out further from there as you feel appropriate.I'd be interested in other forumite's views here also.
Wilrose
Thanks Wilrose.
Its something we have always done – basically buy the most expensive house we can, its generally served us well
over the last 15 years or so.I guess the longer term plan is that my wife will return to work in say 2 years when the youngest starts school.
I'd expect that to add another 20k per annum.Sure, we dont plan to live in a 4 bed house for ever, as soon as the kids leave home (although that could be 20 years time !) we do plan to downsize significantly.
We also plan to put the money we currently pay for school fees to pay off the mortgage quicker as the children leave school / university.
Thanks for the comments though.
Regards
Neil
Hi Ian
newbie here too, and also living on the northern beaches.
Care to share the company you wnt with in the end ?
Best Regards
Neil
