[ryanmelMember@ryanmelJoin Date: 2003Post Count: 30]

March 4, 2004 - 1:16 pm

i use the loan that margaret lomas talks about, i actually had destiny financial solutions set it up for me. i find it very useful. and even flexible.

we have a st george portfolio loan, which allows up to 10 sub accounts. the first account is for my PPOR, where all our pays and rents go into, and where we pay our interest on other loans from. the second account is specifically for our IP’s and the third for shares.
because all the accounts are seperate it is very easy to see what interest is deductible and what is not.
as we pay down our PPOR we reduce our credit limit on the first account and move it across to our IP account. this means we can redraw that money when we need to and make a deposit on an IP. when we buy our next IP we are going to revalue all the properties and have our loan limit increased, therefore increasing the amount we can redraw… and away we go.

i like it. it may not be for some ppl, but it works for us. i guess thats the way it is with everything… each to their own.

[ryanmelMember@ryanmelJoin Date: 2003Post Count: 30]

March 3, 2004 - 2:45 pm

i think something that hasn’t been mentioned but explains why people would pay, for example $200pw rent, is lifestyle.

lets say someone wants to live in a nice, near city, cafe strip townhouse in perth, they pay $250pw. the place is new, very nice.
if they wanted to buy the same place it would sell for approximately $350000+. So, because i don’t know the exact sums to work out principle and interest, lets look at interest only payments… thats $403pw at 6% interest.

now, this obviously isn’t going to be close to +ve cashflow, but there are investors out there that don’t look for the properties we look for, or are investing for CG.

$250 or $400pw to live where you want, it’s a lifestyle and personal choice.

[ryanmelMember@ryanmelJoin Date: 2003Post Count: 30]

February 11, 2004 - 2:43 pm

if i saw 850+ my maximum would be 850, and i’d be negotiating down….phew, and a rent of $1700pw. hehehe

[ryanmelMember@ryanmelJoin Date: 2003Post Count: 30]

February 4, 2004 - 2:19 pm

well it’s a forum, so i’ll add my little bit.
my wife and i are investing and have been for about 3 years now. our good friends, are still our good friends. but in what some have said, you lose friends, in our case it’s not so much losing friends as it is not seeing ppl as often as you used to. some friends we see every 3 months or so… and it’s because we are dedicating all our free time to learning, researching, reading, staring at a computer screen replying to forums [8], budgeting. so when some friends want to go out and spend $ doing something we are impartial to, we decline. after a few “no thanks, next time”‘s you stop getting invited, which unfortunately, is not what was intended.
this is something we are currently trying to become comfortable with as we are not going to change our minds regarding investing. one is emotion, the other, is investing. just make time to see friends.

[ryanmelMember@ryanmelJoin Date: 2003Post Count: 30]

February 2, 2004 - 3:35 pm

yes, well, we have had two bad experiences with PM’s, one within a RE agency, one a dedicated PM company…. so we
looked elsewhere and when you look for something, it comes
to you…. through conversation we were put onto a lady who
does Landlord Consulting. very good. very thorough, can’t complain at all. JMAC Landlord Consulting. worth a call if you’re looking for a good PM i say.

[ryanmelMember@ryanmelJoin Date: 2003Post Count: 30]

January 28, 2004 - 3:09 pm

whether i am just repeating what has been said, i think where some of the confusion might be in the whole +cf and -cf saga, is that one person is thinking cashflow in terms of after depreciation and deductions and the other (SIS) is talking about rent versus interest, before expenses and depreciation, this is how i understood what he said.
and hey, if you can legally reduce your tax to 0, then there is nothing wrong with that. ideally, while we are setting up investment portfolios, wouldn’t that be everybodies ideal situation, all their income paying off there debts until you are taxed for MAKING MONEY.
what a shame. making money……. []

[ryanmelMember@ryanmelJoin Date: 2003Post Count: 30]

January 27, 2004 - 1:04 pm

i think what was being referred to in that section is the strategy that involves buying, for example only,
10 properties, interest only, and when you are ready to retire from the workforce, refinance and redraw funds using whatever capital growth you have gained in the last year or so, and live off of the borrowed funds, as long as you never redraw more than the property has grown in value, you can keep under a 80%LVR. Tax free funds to live with, but these would then not be tax deductible as they weren’t used for an investment, they were used as spending money.
It’s a good idea for those that want that strategy, there are also better ones obviously. Ones where the rent pays the loans and puts money in your pocket to live off of.

[ryanmelMember@ryanmelJoin Date: 2003Post Count: 30]

January 27, 2004 - 12:06 pm

delayed gratification isn’t it, we are doing the same, all with the goal of enjoying life to it’s fullest (with no worries of working to make a dollar).
the investments can work for us

[ryanmelMember@ryanmelJoin Date: 2003Post Count: 30]

January 27, 2004 - 11:53 am

http://www.tradersnetwork.org

[ryanmelMember@ryanmelJoin Date: 2003Post Count: 30]

January 20, 2004 - 1:21 pm

no offence kay henry, but you seem to take posts very personally. i didn’t see someone call people who read papers ignorant. all that’s being said is, never to follow what is said on tv shows and headlines papers 100%. you need to do your own due diligence and research. same with reading books, or ppls posts. the only thing is the %age of ppl who watch tv and read papers is a lot greater than those that visit property forums and read property related books, therefore, there are more ppl who are susceptible to what can sometimes (not always) be hype, or an excuse for a story. those that don’t follow the market but have come into some money, be it super, or inheritance, or lotto, my just go on a decision related to something they saw on TV.
i think those that visit this forum have the knowledge to do their own research and whether you watch tv or read papers or live like a hermit, will make their own decision.

[ryanmelMember@ryanmelJoin Date: 2003Post Count: 30]

January 19, 2004 - 1:08 pm

the younger ppl of these areas can’t wait to move out, i was born and lived in manjimup and my extended family still live there, it’s a great area, but they survived on the mill industry for years which is now almost dead. most ppl are moving up to bunbury or perth for job prospects. there is only a handful of shops and ppl are settled in there for long term jobs as they obviously don’t wish to leave the area. the wineries are really getting up and going now. keep an eye on the region though, there are some HUGE developments taking place in the next 10 years from what i’ve read, more towards the cowaramup area.

[ryanmelMember@ryanmelJoin Date: 2003Post Count: 30]

January 19, 2004 - 1:00 pm

well, thanks for your replies.
we are more than likely going to stay where we are for now, and use out equity to get into some +ve IP but we are also looking at businesses. we need cashflow to pay down our debts fast, our plan is 4 years to retirement. we need to be able to invest in as much +ve IP as possible and pay down as much debt as possible, and, well, to be honest, i don’t want to work for someone else anymore, i would rather work for myself, even if it meant more hours. that would suit me to a T.

[ryanmelMember@ryanmelJoin Date: 2003Post Count: 30]

January 19, 2004 - 12:28 pm

are there any tax implications or legal issues if the people are paying “board” to you instead of “rent”?

[ryanmelMember@ryanmelJoin Date: 2003Post Count: 30]

January 19, 2004 - 12:23 pm

a relative of mine believed you had to stay in the property for 12 months, but then rang to find out about it, and it just had to be proven that you had lived in it for a period of time, a couple of months after buying the place, he rented it out, and everyone was happy. examples given to him by the FHOG ppl that he spoke to was that you had all your bills forwarded to your new address, etc.
he checked first to make sure he wasn’t breaking any laws, and they were happy, now it’s his first IP. and he moved back in with his folks.

[ryanmelMember@ryanmelJoin Date: 2003Post Count: 30]

January 19, 2004 - 12:19 pm

it’s good to watch these news stories, they can affect the market in that the casual investors who don’t want to do the research will act upon the tv and papers and go into buying or selling frenzies as per what they hear. a lot of people will panic. how many ppl have you had conversations with, who are looking at investing, but heard on the news the other day that ….blah blah blah….. just like news stories can affect share prices, same same.

[ryanmelMember@ryanmelJoin Date: 2003Post Count: 30]

January 12, 2004 - 1:24 pm

some taxi driver i know work with another person, two ppl, two 12 hour shifts, over 1 million kilometres per year. if you’re willing to work your butt off, you will get paid. how many ppl do you know that work 12 hour days, 7 days a week, almost 365 days of the year…????

then again, who’d want to!? bah!

[ryanmelMember@ryanmelJoin Date: 2003Post Count: 30]

January 11, 2004 - 11:00 am

or you could speak to some ppl on this forum about a vendor financed purchase?!?!?!?

you have a deposit, you want somewhere to live. you could be looking in the right place!

[ryanmelMember@ryanmelJoin Date: 2003Post Count: 30]

January 11, 2004 - 10:56 am

try another lender?

or use a mortgage broker…. they normally have friendly acquaintances with certain members of the lending industry….[]

or if you like, i’ll buy your perth property from you…. $10000, seems fair….. bit of money in the bank….hehehe

devilcv8, don’t spo’se you drive a monaro????

[ryanmelMember@ryanmelJoin Date: 2003Post Count: 30]

January 11, 2004 - 10:30 am

SIS i am also using destiny solutions software.
it is simple, straightforward, and, if anyone out there had the skills with EXCEL and ACCESS they could do it themselves.

but why not support a company thats interested in helping you become financially free.

we religiously enter all our income and expenses in daily and it’s good to be able to do “query”‘s on specific expenses, not just an overview of all of them.

currently trying to link all my saved files together. i had a few issues with my home pc and had to get destiny to come out and reinstall finsoft. so i have backups of the last 3 years but in different files, i would like all of them together so i can work out full year income/expenses on my investments.

ryan

[ryanmelMember@ryanmelJoin Date: 2003Post Count: 30]

January 11, 2004 - 10:15 am

being units in a complex, did you get a depreciation schedule or similar from the agent?
if so, how does that affect your cashflow?

the deductions on tax for the interest alone would be approx $35 per week at the 30% tax bracket. and then you would have the depreciation on a fully furnished unit….

i hope i did my sums right.

if you don’t intend on selling a property, isn’t it wise to use depreciation and tax deductions to their full advantage? obviously it depends on each persons strategy.

[]