Hi,

quote:Now am I correct, we pay interest only on the amount drawn from the LOC. Plus the IP mortgage of course.

Some LOC facilities also have an access or facility fee that’s payable regardless of the drawdown.

quote:Also, is the interest paid on the LOC tax deductablt or (this is were I am really unsure) is it part of my PPOR and not…

[Read more]

Hi,

For more info on capital gains see:

http://www.ato.gov.au/content.asp?doc=/content/Individuals/22313.htm

Bye,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Hi,

Be sure to check out:

https://www.propertyinvesting.com/strategies/creativefinancing

There are many things you can do…

1. You could try to buy a cheapish property on a long settlement (6+ months) and then do some renovations in the meantime.

2. Wrap / lease-option a property.

3. Buy something, particularly a commercial property, and…[Read more]

Hi,

quote:
Steve in your wrap example you have a purchase price of 80% FMV. Do you consider this low ball.
What % discount to FMV do you consider low ball.

Which wrap example?

Is it 80% FMV, or am I getting an 80% (LVR) loan?

Anything offer less than say 70% of FMV that is also made on a willy-nilly is something that I would consider a…[Read more]

Hi Mannie,

Thanks for your post.

Most insightful!

Bye,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Hi,

I had a good chuckle over this post.

Perhaps I’ll share a bit of personal info here.

The second to last time I played Monopoly was back in final year Uni. It was a three way battle between me and two other students at my (parent’s) house.

I was blitzing to the extent that the other two guys were about to be blown out of the water. Then…[Read more]

Hi,

There are usually trust grouping provisions for land tax that means splitting entities offers little benefit.

Still, as the system is not self-assessed, it’s a little bit of ‘catch me if you can’. I’d only set up another entity if the asset protection made it necessary.

Michael – thanks for your excellent posts.

Bye,

Steve…[Read more]

Hi,

I can recommend an excellent builder who handled a huge renovation for us not long ago.

His fees are reasonable (well they were for us anyway). Nessie – I’d certainly get him to quote.

Contact me if you want his details (admin@propertyinvesting.com). He works in the wider Melb. metro area.

Bye,

Steve McKnight

**********
Remember that…[Read more]

Hi Novice,

Thanks for your post and welcome to the forum.

First off, let me say that while you have purchased a property that I probably wouldn’t have, at least you are in the market and will now benefit from practical experience.

So, to that extent, congratulations on making a decision. Now it will be important to maximise your investment…[Read more]

Hi,

This is a very interesting post.

I’d like to know why you feel you want to do the course. That is – what benefit you will recieve that will make the time and cost worth it.

I’m all for ongoing education, however I would just caution you that the course is likely to teach you little about the practicalities of investing and more of the nuts…[Read more]

Hi,

Break Free Events are promoting him.

I’ll be going along to the afternoon session as I am busy that night.

Should be interesting. I’ll report back with my opinion after the event.

Bye,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Hi,

There are two schools of thought on making offers.

School #1 – Volume Means Success

The thought here is that the more offers you make the better. Usually it’s a matter of maybe one or two in a hundred are accepted because the price offered is so low.

School #2 – It’s All About Creating A Deal

This school believes that low-balling is a…[Read more]

Hi,

There has been plenty of press lately about the windfall gain that the Victorian government has pocketed from Stamp Duty in recent years.

The boon has arisen by a circumstance that is very similar to salary ‘bracket creep’ in that while the rates have not increased as such, the rise in the value of properties has meant that more is…[Read more]

Hi,

Good point. They must have changed it after I completed the recording.

Lucky there’s more than one way to skin a cat. Try:
http://www.homepriceguide.com.au/snapshot/

in conjunction with the free info at: http://www.propertyvalue.com.au

Or else pay the $9.95 for the info at PropertyValue.com.au (through the postcode profile) area.

Bye,

Steve…[Read more]

Hi,

It does not matter when you bought the property (unless it was pre-CGT).

It’s very unlikely that you will be eligible to claim an outright deduction for capital improvements.

However, you may be able to either write them down or alternatively depreciate them. Whether or not this is applicable must be discussed with your accountant as the…[Read more]

Hi,

Only invest in things that make money from day one.

Bye,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Hi Leigh,

We did just what you mention here on the basis of telling our financier what we were planning to do and them agreeing before the project commenced.

We received 80% of the purchase price + 80% of our renovation costs.

Bye,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Hi Russell,

Thanks for your post and welcome to the forum.

I don’t have a lot of experience with developing property as such, however I think that getting the finance green light will have a lot to do with how many pre-sales you can orgainse, or how much of your own/investor’s money you plan to put down.

Maybe give The Money Shop a go as they…[Read more]

Hi,

There are two focuses you can have in property.

1. On the Property

This means you focus on the property, usually seeking capital gains returns. As such, position becomes very important.

Things that will increase the value are variables that add to perceived or actual value which cause demand > supply.

In the house vs. unit debate -…[Read more]

Hi,

When I get the time I’ll create a web page specific to the 11 Second Solution.

Quickly, it’s:

((weekly rent /2) * 1,000)

It would be wise to do a search on the topic and see what comes up as there has been a lot of discussion in the past.

Have a wonderful day,

Steve McKnight

**********
Remember that success comes from doing things…[Read more]