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- itsandrew wrote:What's the time lag between actual sales and the time the data turns up in paid suburb reports like my rpdata?
Data usually turns up in RPData & Residex reports once it hits the state revenue office. This occurs 1-4 weeks after settlement.
If you've got a 60 day settlement, the data might not show up in a report until 90 days after the contract was signed. Agents and valuers have access to more recent information, but this does assume the selling agent is publishing the data (which doesn't always occur).
Is this a good property for an investment?
Tax considerations are nice, and you're definitely paying a lot of tax. Keep in mind though that if you're getting negative gearing benefits, it means you're taking $1 out of your own pocket and getting 40 cents back from the ATO. It's still costing you 60 cents.
If this property will have good capital growth, it's likely a worthwhile investment. If it won't go up in value, you're spending money to get a percentage of it back from the ATO (you're throwing money away).
Take the tax deductions where you can, get a depreciation report done, but don't invest in anything simply to reduce your tax. Make sure there's a good reason for the investment, then figure out the tax benefits.
This is a great loan in the first year, but as stated it's a dog after 12 months. It essentially goes to 5.64. You save a lot of money in the first year, but pay it back over the next few years. The deferred establishment fees also make sure its uneconomical to move to another lender after the 12 month introductory period.
You can save money on this loan if you make lots of extra repayments in the first year, but for investors that might defeat the purpose of an interest only loan to maximize cashflow.
