[RyanJDMember@ryanjdJoin Date: 2011Post Count: 77]

May 7, 2012 - 9:47 am

I found in W.A. the commerce website provides a great deal of information.
I'm sure things are different in Victoria but they might have a similar website

http://www.commerce.wa.gov.au/consumerprotection/Content/Property_renting/Renting_and_tenancy/Landlords/index.htm

[RyanJDMember@ryanjdJoin Date: 2011Post Count: 77]

April 11, 2012 - 10:53 pm

The agent said after the house was passed that the bank would accept any offer over $250,000.

Only one person put an offer in while at the house. I don't understand why that person would add another $10,000 to what would be accepted when they saw no one else put an offer in.

I actually thought about putting my first offer at $260,000 then I thought why, they would of put $251,000 or something like that.
Thought the agent would of gone back and forward to get the best price.

Oh well my loss!

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April 11, 2012 - 6:54 pm

1998 Supercharged Holden Calais – Paid $4750
1988 Turbocharged Toyota Supra – Paid $4000

Not a fan of paying for things that depreciate in asset.

[RyanJDMember@ryanjdJoin Date: 2011Post Count: 77]

April 10, 2012 - 10:00 am

Tenants have paid all the money owed few days after I posted this.

They also said my neighbours have given them the money for the fence repair, don't know whether to believe that or not.

Tenants are requesting to stay another three months on a fixed lease as they are building their house.

Hearing is tomorrow we'll see what happens. I do find it strange that the hearing was so quick as I applied online last Sunday and its this Wednesday.

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April 9, 2012 - 11:47 am

I've noticed banks don't allow any clauses unless it gets passed in.

Few I've been to a few who want 10% deposit, will not allow early access, 30 days settlement and no pending finance.

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April 2, 2012 - 4:34 am

Hi Derek thanks, I've actually read that website over a dozen times, every form, document and it points out I'm doing anything correctly. The only thing the website doesn't say is how much time you have to give them on the termination form to move out of the house.

DWolfe, I didn't say I would pay for further repairs, only said I would pay them for materials on the first fences none of the others. None of this is in writing, which I can not see as a perk for them.

I didn't give them receitpts for rent as the commerce website as Derek posted says direct debit doesn't need a reciept. Otherwise i would of had to give them one within 3 days of getting rent. I can prove what they have paid as they have only paid to the same bank account. They haven't get reciept's to proove they pay any by cash.

Yep I'm glad they replied the next day they got the mail for termination otherwise they could of said they didn't get it. The website says either mail by normal post or handing it to them which doubt they would take it.

I'm actually glad I researched all this before leasing the house out. Strange to say but I'm excited to go to court and have this done as it will be a good learning experience for myself for future landlording! New tenacy act comes into place soon so I'll have to look into that as well. Good chance I'll have to go back to court after they move out to claim bond or further payment if they cause damage to the property.

Any other advise people can offer? Is legal advice tax deductable? I know you can not have a laywer represent you in the Magistrates court unless both parties agree from reading the website.

[RyanJDMember@ryanjdJoin Date: 2011Post Count: 77]

April 1, 2012 - 1:42 pm

I always look at older houses only if it has a potential to either subdivide or renovate and add more value. Make sure you check how much it will cost for repairs/maintenance as well. 
As your a FHO you'll have to live in the house for the specified time until you can rent it out. In this time if you get the older house you can do reno's and claim depreciation over time AFTER its rented out. Don't think you can not claim repairs after while your living in the house though. Older houses still have depreciation for some things but not near what you'll get for a new house.

The 26K for the new house sounds nice but if the rent or land value doesn't increase then you only have rent and depreciation as income. New houses have the most depreciation at the start and get lower and lower, how long do you plan to have the property?

Check difference in insurance costs for the new and old house as they could differ.
Have you checked with the council to see if you can subdivide the old property now or in the future and if the market wants new houses on sub divided properties? Maybe buy the old house subdivide and sell the land?

The difference in rent is bugger all.

[RyanJDMember@ryanjdJoin Date: 2011Post Count: 77]

February 23, 2012 - 1:06 pm

Why not buy a cheap/reliable car for 2-3K and once you purchased your investment property sort out what you have and what you can spend. Car loan interest rates are much higher then home loan interest.

You can always resell the car and purchase a more expensive car afterwards

[RyanJDMember@ryanjdJoin Date: 2011Post Count: 77]

February 21, 2012 - 10:22 am

The way I do it is pay everything on my credit card (food, fuel, parking, bills etc) and then pay off the credit card with the money in my offset account before the "55 days".

Its not really 55 days its something like 30 days interest free then you have 25 days to pay off that interest. So if you pay if off at the start of the 55 days and pay it off before the end of the "55 days" it saves you some money because you have that money sitting in your offset account for 55 days before you have to use it to pay off your credit card. Read your terms and conditions, its on most banks websites.

Lots of credit cards don't have an annual fee either so it's win/win aslong as you do it correctly

I've done it for nearly a year, haven't paid any fee's or interest but unfortunatly I'm no good at maths to calculate how much I saved. Even if it's a little bit, its still a little bit saved!

[RyanJDMember@ryanjdJoin Date: 2011Post Count: 77]

January 29, 2012 - 2:10 am

Thanks for that, tried using to ato website yesterday to get the information but it was down.

Anyways info here

http://law.ato.gov.au/atolaw/view.htm?docid=ITR/IT2167/NAT/ATO/00001

[RyanJDMember@ryanjdJoin Date: 2011Post Count: 77]

December 5, 2011 - 5:43 pm

Why do you want your own home (PPOR), guessing at age 24 you want independance?

3. Stay at home & purchase IP with IO loan with 100% offset
(save on rent if you don't pay it, also interest on IP is tax deductable, once you get inheritance put into offset and then your IP should be positive cashflow. Could purchase another IP?)
4. Rent a house & purchase IP with IO loan with 100% offset
(Pay rent, might not be able to get IP loan until inheritence due to paying alot of rent, interest on IP is tax deductable though)
5. Rent with friends or rent room & purchase IP with IO loan with 100% offset
(Pay small amount of rent, should be able to get IP loan, interest on IP is tax deductable though, part freedom)
6. Purchase PPOR with first home owners grant IO loan with 100% offset. No stamp duty!
(Live in for 6 months then turn into IP)
(Live in and rent rooms out)
(Live in then purchase a IP)

With PPOR the interest is not tax deductable except if you rent out rooms which is part deductable I believe? (Check ATO website)
If you have a PPOR and IP put all your money into the 100% offset account of your PPOR and you will then be able to claim more interest on your IP while paying less interest on your PPOR.

Don't jump into anything if your not 100% sure or if someone tells you to. Your not in a rush so research research research!

[RyanJDMember@ryanjdJoin Date: 2011Post Count: 77]

December 5, 2011 - 5:09 pm

Hi Damien,

I would recommend starting all your research about property investment in forums and other websites before you start anywhere else. They are free, have no strings attached and you can learn at your own pace!

These forums have pretty much everything you need to know and if not ask a question, lots of people here can provide great advice. I learnt nearly everything i know in the past 6 months from this forum by going through hundreds of threads.

[RyanJDMember@ryanjdJoin Date: 2011Post Count: 77]

December 5, 2011 - 4:43 pm

Would you ever recommend someone to manage their own property and if so what advice would you give them?

What are the most common mistakes when starting in property investment?

What are the positives and negatives of a single investor vs a couple investing?

Should you always go to a mortgage broker or can you find a better deal yourself?

How do you stay focused on your investment goals without your effort go down the down in that small window of weakness?

How can you investment in property without investing in 2 minute noodles? (Kinda funny kinda relevant)

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December 3, 2011 - 9:28 am

If anyone is interested, house was passed in with no bids, had a feeling they would. Only about 5 interested 'couples' showed up.

On a greater note they are taking offers with only subject to finance approval and the reserve is 50K below what i expected!

Hopefully my offer wins!

[RyanJDMember@ryanjdJoin Date: 2011Post Count: 77]

November 26, 2011 - 4:28 am

See Table 1 about zoning size. R30 is much better

http://www.stirling.wa.gov.au/NR/rdonlyres/2F465AE2-8C26-4DD6-B7A8-CEAABE833325/0/InfoSheetResidentialSubdivision.pdf

[RyanJDMember@ryanjdJoin Date: 2011Post Count: 77]

November 25, 2011 - 10:15 am

Thanks for the reply Richard,

I know how much the property will be valued for as it is an identical layout to my current house on the next street.
The land is 30sqm smaller and the condition of the property is a bit worse when i purchased mine but mines since been renovated.
I lived in the suburb for 25 years, problem is other people who bid at auction might bit higher then what it would be valued at.

I've got pre approval by my current lender about 30K above what the price will go for but I'm scared a bit incase for some reason the full approval gets rejected.

Also do lots of people use deposit power instead of cash or cheque? I have about 45K cash in offset (way above 10%) and just over $60K in equity in my current investment.

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September 27, 2011 - 7:52 pm

Contact the council first to make sure you have enough space and are allowed to subdivide in the suburb before spending any money preparing it.

[RyanJDMember@ryanjdJoin Date: 2011Post Count: 77]

September 18, 2011 - 10:25 pm

I'm renting with mates so only one loan which is for the investment property.

I refinanced to IO when i started renting it

[RyanJDMember@ryanjdJoin Date: 2011Post Count: 77]

September 18, 2011 - 2:18 pm

Thanks everyone,

Terry I've got a IO loan home with the money in a 100% offset.

I've been told by my bank i can reduce my current home loan now to 6.95% from 7.10% but if i reduce the loan from 288K to 262K i can have the loan for 6.85% because the LVR will be 75%. Is this a good deal?

I've noticed other banks have pretty crap deals on there websites. Do brokers get access to better deals for clients?

[RyanJDMember@ryanjdJoin Date: 2011Post Count: 77]

April 7, 2011 - 6:11 pm

Good idea, would of saved me a lot of time but i did enjoy reading the other things i found.

Should call it "First IP – Where to Start"