PropertyInvesting.com | StumpCam | Activity https://www.propertyinvesting.com/members/stumpcam/activity/ Activity feed for StumpCam. Sun, 12 Apr 2026 16:50:54 +0000 https://buddypress.org/?v=2.8.1 en-US 30 hourly 2 06f247f907b859a99990cefd5c11e65e StumpCam replied to the topic The True Power of an Offset Account in the forum Finance https://www.propertyinvesting.com/topic/4410311-the-true-power-of-an-offset-account/#post-4696607 Mon, 09 Dec 2013 07:02:37 +0000 I agree Freckle, except perhaps for the fact that the offset account should be applied to private debt if it exists. There won't be any tax effect in this case. I doubt that you'd keep the private debt for thirty years if you could help it, but that's not really the issue. 
  My pet hate is when banks and advisers love to tell us how much interest…[Read more]

]]> bae805d43fc378a3d1facbc10c538e5f StumpCam replied to the topic depreciation question in the forum General Property https://www.propertyinvesting.com/topic/4410390-depreciation-question-2/#post-4697143 Mon, 09 Dec 2013 06:14:30 +0000 Hi Harry, I assume your accountant meant that it pushes you down to the next bracket below if you claim depreciation. That may be the case if it pushes you down to the zero tax bracket ($18,200 pa), but even if it pushes you down to the bracket above that (20.5%) then it's still worth claiming depreciation. It all helps with your bottom line,…[Read more]

]]> 1e22f0458bb37aefae8c1b9da87f4444 StumpCam replied to the topic Refinancing investment property in the forum Help Needed! https://www.propertyinvesting.com/topic/4397388-refinancing-investment-property/#post-4609786 Wed, 30 Sep 2009 09:26:59 +0000 Wow Sandy, That's a pretty sizable IP. I said you would save a lot more in tax than it would cost you for the changeover but I didn't really think that through. The value of your IP made me think that perhaps you should really calculate the numbers. You haven't given us the size of your IP loan and your PPoR loan, but let me work through a…[Read more]

]]> 8b57299eed20b867b6b49eca1e97fd2e StumpCam replied to the topic Refinancing investment property in the forum Help Needed! https://www.propertyinvesting.com/topic/4397388-refinancing-investment-property/#post-4609782 Tue, 29 Sep 2009 20:04:37 +0000 Hi Sandy, this is a very common problem. You can't increase the mortgage on your IP to increase the tax deduction. It's all about the purpose of your loan. You're effectively taking out the extra loan to finance your ppor and this doesn't wash with the ATO. Probably your best solution is to sell your IP. It won't have a huge CGT as it was your…[Read more]

]]> 06f972193d8f6339da5f0397a85ddfa7 StumpCam replied to the topic refianance loan in the forum Help Needed! https://www.propertyinvesting.com/topic/4397387-refianance-loan/#post-4609777 Tue, 29 Sep 2009 19:49:08 +0000 Déjà vu Kenny! Thanks again for your help on this topic with me. I've since refinanced my mixed purpose debt. Cheers, S/CRichard you really should know better, we've had a few discussions about mixed debt before.

]]> 7e5b4e33c37b4e01d15bfc7185b81f4c StumpCam replied to the topic Offset Account Help Needed. in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4397371-offset-account-help-needed/#post-4609567 Tue, 29 Sep 2009 19:21:53 +0000 Hi Dru, interest in your term deposit is taxable income, so to compare with the same tax bracket of 39.5%, you'd need to be getting better than 5.5% which will give you 3.3275% after tax. If you started your term deposit a while ago, you may well be getting better than that. You'd pay a penalty if you withdraw it early. The difference of a p…[Read more]

]]> 04eb60026dab235fbc1b472f58c68178 StumpCam replied to the topic Desperately need to lower our tax!! in the forum Help Needed! https://www.propertyinvesting.com/topic/4397369-desperately-need-to-lower-our-tax/#post-4609556 Tue, 29 Sep 2009 10:49:42 +0000 Hartfam, it's a tax credit of 6k, ie 6k less tax. The actual deduction is nearly twice that, as you're in the 46.5% bracket. This deduction will rise if interest rates rise, but it will fall as depreciation dwindles. Property is certainly a great benefit in the long term. Tax is just part of the picture, and as I've mentioned, getting big tax de…[Read more]

]]> bc971cf2c9ccbe2f2be7608abaeef9ec StumpCam replied to the topic Desperately need to lower our tax!! in the forum Help Needed! https://www.propertyinvesting.com/topic/4397369-desperately-need-to-lower-our-tax/#post-4609553 Tue, 29 Sep 2009 06:03:24 +0000 Hi Hartfam, just one thing about shares/manged funds, you'd be hard pressed to invest in shares that pay less than the current interest rate anyway. Banks etc currently have a yield of about 5-6% fully franked, which is 7.14 – 8.57% after franking credits are added in. Your loan interest may well be less than that if you use a home equity loan, so…[Read more]

]]> 8349a3f6b0f5e05e22d9ef94814a674a StumpCam replied to the topic Offset Account Help Needed. in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4397371-offset-account-help-needed/#post-4609563 Tue, 29 Sep 2009 04:48:27 +0000 No WJ, it's not really "tax free". Your just offsetting tax deductible debt. It's only when you're offsetting private debt that you can truly call it "tax free". For example, if Dru is in the 39.5% tax bracket, his effective saving with the offset account balance is 5.5% X 0.605 = 3.3275%. If the offset account is against private debt, then he…[Read more]

]]> 7bf5ad03619eac06cc641a66bce8f1a1 StumpCam replied to the topic Equity availability if I own 10% in the forum Help Needed! https://www.propertyinvesting.com/topic/4397360-equity-availability-if-i-own-10/#post-4609518 Mon, 28 Sep 2009 22:43:17 +0000 Hi Shivasko, thanks for the good rap. As the sticky thread says, always seek your own professional advice if you're unsure, and take what we say as a guide only. What I can say however, is that my ppor is joint tenants with my wife, and I have a few IPs in my name. I have loans in my name only, using our ppor as security, for which my wife had to…[Read more]

]]> 042db40276fdba5d4a0555dd770d5935 StumpCam replied to the topic Equity availability if I own 10% in the forum Help Needed! https://www.propertyinvesting.com/topic/4397360-equity-availability-if-i-own-10/#post-4609514 Mon, 28 Sep 2009 08:26:39 +0000 Hi Shivasko, You certainly can use all the available equity as Richard says. You could increase your existing loan, but it may be better to simply start another loan account with the same bank. It can be in both your names to simplify the application, and then you can invest it in an asset solely in your name and then claim all the interest as a…[Read more]

]]> ca1d7d3337d59f943efd3bdbc277e6d1 StumpCam replied to the topic Guidance for a Newbie? in the forum Help Needed! https://www.propertyinvesting.com/topic/4397368-guidance-for-a-newbie/#post-4609539 Mon, 28 Sep 2009 08:08:41 +0000 AW 180k is their combined income. You're a bit out of date by the way, the current tax table is 39.5% from 80k to 180k.Cheers.

]]> a8695b87c9ff4edbeba026fa4c1f2c76 StumpCam replied to the topic Guidance for a Newbie? in the forum Help Needed! https://www.propertyinvesting.com/topic/4397368-guidance-for-a-newbie/#post-4609538 Mon, 28 Sep 2009 08:05:27 +0000 Hi ClarieBear, Welcome to the forum. You certainly have a fair bit of equity built up with your two props, certainly enough to fund the 25% required for another IP or two (or more). LOCs don't really have features, they just have an interest rate as low as you can get it! Debt servicing ratio may be your limiting factor.You could switch your IP…[Read more]

]]> e0c06697070b8ec66b6dcb2a4243ac3d StumpCam replied to the topic HELP CALCULATING DEPRECIATION in the forum Help Needed! https://www.propertyinvesting.com/topic/4397357-help-calculating-depreciation/#post-4609500 Mon, 28 Sep 2009 02:17:53 +0000 Hi Mrs P, here's some real numbers based on a house that cost ~200k to build including fittings, landscaping etc, just to give you some idea.The QS set the cost to build the house at 187200 which will be depreciated at 2.5% prime cost (ie it stays the same each year until it's used up). This will give me a deduction of 4680 pa for 40 years.The f…[Read more]

]]> 16944fc03ac8c1773df018c38407afa5 StumpCam replied to the topic Interest on loan for deposit to build an IP: When can it be a tax deduction? in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4397350-interest-on-loan-for-deposit-to-build-an-ip-when-can-it-be-a-tax-deduction/#post-4609477 Mon, 28 Sep 2009 00:43:05 +0000 Thanks Terry, I've since done a bit of reading about the Steele case. Sorry I should have done a bit more research, but that keyword "Steele" was the important bit of info I needed.   Just one thing: How do you claim for the interest when doing your tax online. It won't let you lodge unless you put a figure in the "date first rented" field. I l…[Read more]

]]> 016c81b40919d21733fc5ad1fdc365a4 StumpCam replied to the topic Negatively geared property> What do I do? in the forum Help Needed! https://www.propertyinvesting.com/topic/4397348-negatively-geared-property-what-do-i-do/#post-4609469 Sat, 26 Sep 2009 09:11:41 +0000 PS B, here's a good book by Stuart Wemyss that I've just read. It gives a good comparison of the various strategies of pos or neg gearing and development, plus defining goals, retirement strategy etc. http://www.prosolution.com.au/books/ppuzzle.htm The only thing I'm a bit dubious about in his book is the expectation of always getting 7 to 10% c…[Read more]

]]> 1ce2e385da503d48775f9dc2edf84911 StumpCam replied to the topic Negatively geared property> What do I do? in the forum Help Needed! https://www.propertyinvesting.com/topic/4397348-negatively-geared-property-what-do-i-do/#post-4609468 Sat, 26 Sep 2009 08:44:53 +0000 B, it's great that you've now created a determined goal; I think that's the first big step. I finally saw the light 11 years ago. I started with 4 negatively geared IPs that are now just about neutral after tax. My rent has gone from about 155pw to 280pw on two houses, and from 200/w to 300/w on two units. Most of the depreciation has gone now,…[Read more]

]]> 36dd61b289a471a0339eb4064637c5c8 StumpCam replied to the topic Negatively geared property> What do I do? in the forum Help Needed! https://www.propertyinvesting.com/topic/4397348-negatively-geared-property-what-do-i-do/#post-4609466 Sat, 26 Sep 2009 06:26:27 +0000 Hi Bergy, ppor = principal place of residence as you've guessed. You have good equity in that. An additional cash flow +ve property won't really affect your negatively geared property.    Your negatively geared property may drop you down to a lower tax bracket, so when you're working out your net cash flow from your next property you have to use…[Read more]

]]> de06ed8bbee5e14e0f15dab99fd8cdb2 StumpCam replied to the topic From 0 to 130 Properties in 3.5 years in the forum Help Needed! https://www.propertyinvesting.com/topic/4397302-from-0-to-130-properties-in-3-5-years/#post-4609261 Fri, 25 Sep 2009 05:58:25 +0000 Hi Prestons, there's no need for personal emails; just reply on the forum is fine.:)I don't know about wraps (and I'm just not interested) but for buy & hold, IO is best if you have any non-deductible debt. There's such little difference between IO & P&I for a short time frame then it doesn't really matter if you're doing flips I would think. Eg for…[Read more]

]]> 7c2c39eaf5ef76d002ab6a8e45aef328 StumpCam replied to the topic From 0 to 130 Properties in 3.5 years in the forum Help Needed! https://www.propertyinvesting.com/topic/4397302-from-0-to-130-properties-in-3-5-years/#post-4609260 Fri, 25 Sep 2009 01:20:05 +0000 Looks like your question has been ignored P. (like my answer;) I suggest you go for a good trawl through the forums. You'll find a lot of threads discussing IO vs P&I.BTW it's principal, not principle. It's a very common misspelling in these forums though. Have a look in dictionary.com.

]]> fd4d87378199dadf5c28f35d5f3ec81a StumpCam replied to the topic From 0 to 130 Properties in 3.5 years in the forum Help Needed! https://www.propertyinvesting.com/topic/4397302-from-0-to-130-properties-in-3-5-years/#post-4609258 Tue, 22 Sep 2009 02:12:53 +0000 Hi Prestons, I'll answer this for Steve as it's just maths. The Future Worth Factor is just 1.0428 to the power 17, ie (1+r)^n where r is the inflation rate divided by 100 and n is the number of years. This comes to 2.039 (you need an {x to the power y} button on your calculator).Present Worth Factor = 1/(Future Worth Factor) so 295k in 17…[Read more]

]]> 6b807056a599fb5f98e76b6c56278807 StumpCam replied to the topic Pay LMI or create LOC for deposit on 2nd IP?? in the forum Finance https://www.propertyinvesting.com/topic/4397057-pay-lmi-or-create-loc-for-deposit-on-2nd-ip/page/2/#post-4608266 Wed, 02 Sep 2009 02:07:22 +0000 Thanks Kenny and Michael, I really appreciate the effort you've put into your responses. I'll look into getting a private ruling, or maybe just split my loans and plead the private ruling above as you say Kenny.   I already have 17 accounts of various flavours, so the collating of statements is already a bit unreal, but it would be worth it (…[Read more]

]]> 701d79e7dda72ac7113ab718395be53d StumpCam replied to the topic Pay LMI or create LOC for deposit on 2nd IP?? in the forum Finance https://www.propertyinvesting.com/topic/4397057-pay-lmi-or-create-loc-for-deposit-on-2nd-ip/page/2/#post-4608263 Wed, 02 Sep 2009 00:20:27 +0000 Thanks for those links Kenny. All the examples seem show pretty clearly that I have to apportion any payments according to the investment/private ratio, but one paragraph was particularly interesting:Second Exception – Refinancing mixed purpose debt 18. A taxpayer may choose to refinance a debt outstanding on a mixed purpose sub-account by…[Read more]

]]> 1d988a779f00b4406e7b47ffedeecd7b StumpCam replied to the topic Pay LMI or create LOC for deposit on 2nd IP?? in the forum Finance https://www.propertyinvesting.com/topic/4397057-pay-lmi-or-create-loc-for-deposit-on-2nd-ip/page/2/#post-4608258 Tue, 01 Sep 2009 09:04:50 +0000 Thanks for that Michael. I've always been given that impression by my accountant, ie that everything has to be proportional. I would certainly like to be able to just kill the private half. Perhaps when I bring my shares back out of super it would be appropriate to apply that capital back to the half that was used to fund the shares…[Read more]

]]> d03c8beca12863f9da28ad3cd891e604 StumpCam replied to the topic Pay LMI or create LOC for deposit on 2nd IP?? in the forum Finance https://www.propertyinvesting.com/topic/4397057-pay-lmi-or-create-loc-for-deposit-on-2nd-ip/page/2/#post-4608256 Tue, 01 Sep 2009 06:34:05 +0000 mortgagedetective wrote:
The ATO's position is that you don't need to have a separate loan account so long as you clearly apportion the interest in the LoC (or any other loan account for that matter) based on what the principle balances were used for.

Mortgagedetective what part of "it's still 50% investment and 50% private" didn't you u…[Read more]

]]> 9a5a9d8d12a8b523342e41553f6d5503 StumpCam replied to the topic Pay LMI or create LOC for deposit on 2nd IP?? in the forum Finance https://www.propertyinvesting.com/topic/4397057-pay-lmi-or-create-loc-for-deposit-on-2nd-ip/#post-4608253 Sun, 30 Aug 2009 09:57:06 +0000 Not exactly Kyla, it's still 50% investment and 50% private. If you make any payment of principal, say 50k, then 25k is considered to be for the private half, and 25k is for the investment half. You have to distribute the payment exactly according to the proportions of each debt, so the only way to clear out the 50% private contamination is to…[Read more]

]]> 572c95b01a3eaa1d6e63c30e05de3a48 StumpCam replied to the topic Mortgage question: Extra repayments or use an Offset account? in the forum Finance https://www.propertyinvesting.com/topic/4397075-mortgage-question-extra-repayments-or-use-an-offset-account/page/2/#post-4608357 Sun, 30 Aug 2009 04:55:13 +0000 Kramulous wrote:
I've been wanting that large TV for the last 4 years but can't quite bring myself to spend $4K when that's almost a $1 per day I would be missing out on.  It's quite sad, I think of everything that way now :s

K we also waited for years before getting our new LCD Sony Bravia (only 42") but we just used Harvey Norman vouchers from…[Read more]

]]> e58ab2fc7870b7b6c5574c25921e9fc1 StumpCam replied to the topic Pay LMI or create LOC for deposit on 2nd IP?? in the forum Finance https://www.propertyinvesting.com/topic/4397057-pay-lmi-or-create-loc-for-deposit-on-2nd-ip/#post-4608251 Sun, 30 Aug 2009 04:38:54 +0000 Just remember kyla, that if you're using an LOC to fund the deposit on your IP that is eventually going to become a PPOR, then keep that LOC as a separate sub-account to any other LOCs, so that you don't end up with contamination of private & investment in your LOC. I know you can only afford a small LOC now, but later you'll have the opportunity…[Read more]

]]> faaf88f69ae7d85bfe5a88f105f4794e StumpCam replied to the topic Mortgage question: Extra repayments or use an Offset account? in the forum Finance https://www.propertyinvesting.com/topic/4397075-mortgage-question-extra-repayments-or-use-an-offset-account/#post-4608351 Fri, 28 Aug 2009 07:18:53 +0000 Hi Fword, just a slightly different train of thought. There isn't much difference between an IO loan and a P&I loan in the first few years if you've set it at a 30 year term. If you're going to live in it forever after renting it for a few years, then there's a lot to be said for P&I. It's just too easy to rob the offset account, and with P&I…[Read more]

]]> 808e466d55f3c7d69ec64ef4d4ad05c2 StumpCam replied to the topic Mortgage question: Extra repayments or use an Offset account? in the forum Hi Fword, just a slightly https://www.propertyinvesting.com/topic/4397075-mortgage-question-extra-repayments-or-use-an-offset-account/#post-4608351 Fri, 28 Aug 2009 07:18:53 +0000 Hi Fword, just a slightly different train of thought. There isn't much difference between an IO loan and a P&I loan in the first few years if you've set it at a 30 year term. If you're going to live in it forever after renting it for a few years, then there's a lot to be said for P&I. It's just too easy to rob the offset account, and with P&I…[Read more]

]]> 947828738a4e3d494bcbb901c65595c5 StumpCam replied to the topic Mortgage question: Extra repayments or use an Offset account? in the forum Finance https://www.propertyinvesting.com/topic/4397075-mortgage-question-extra-repayments-or-use-an-offset-account/#post-4608351 Fri, 28 Aug 2009 07:18:53 +0000 Hi Fword, just a slightly different train of thought. There isn't much difference between an IO loan and a P&I loan in the first few years if you've set it at a 30 year term. If you're going to live in it forever after renting it for a few years, then there's a lot to be said for P&I. It's just too easy to rob the offset account, and with P&I…[Read more]

]]> 6a95487ca428b3b722b46ca3fd27796b StumpCam replied to the topic LOC vs 100% offset account for PPOR that will become IP in the forum Finance https://www.propertyinvesting.com/topic/4397083-loc-vs-100-offset-account-for-ppor-that-will-become-ip/#post-4608422 Fri, 28 Aug 2009 03:13:25 +0000 Lisa that's completely fine with my lender. I tell them everything. The'll only be concerned about your LVR on each property and your debt servicing ratio (ie enough income relative to debt). They've never told me I have to stump up some cash if I have any lying around. I'm mainly limited by my debt servicing ratio after 11 year's growth.PS just…[Read more]

]]> fd8104e1322d6a0d87498f51881cd302 StumpCam replied to the topic LOC vs 100% offset account for PPOR that will become IP in the forum Finance https://www.propertyinvesting.com/topic/4397083-loc-vs-100-offset-account-for-ppor-that-will-become-ip/#post-4608417 Fri, 28 Aug 2009 00:29:18 +0000 Lisa, I assume that if you're considering different lenders, then you don't have a pro package with SGB at the moment? It would be a bit ineffecient if you have two pro packages with the annual fee of $395.     I used to have three different lenders, but I've refinanced them all with WBC so I could qualify for their pro package. This way I pay no…[Read more]

]]> 531b94d7d7345cf2baea48d2ae641f61 StumpCam replied to the topic LOC vs 100% offset account for PPOR that will become IP in the forum Finance https://www.propertyinvesting.com/topic/4397083-loc-vs-100-offset-account-for-ppor-that-will-become-ip/#post-4608416 Fri, 28 Aug 2009 00:14:19 +0000 That is confusing Terry; Westpac's is so simple: The formula is simply: daily Interest calculated for today is precisely: {(Yesterday's closing loan principal – yesterday's closing offset account balance) x (loan interest rate)/100 } / 365. Each of these daily contributions are added together at the end of the monthly cycle and then deducted from…[Read more]

]]> 8e5b55f67a5f6e04615c310cc143ea86 StumpCam replied to the topic LOC vs 100% offset account for PPOR that will become IP in the forum Finance https://www.propertyinvesting.com/topic/4397083-loc-vs-100-offset-account-for-ppor-that-will-become-ip/#post-4608413 Thu, 27 Aug 2009 04:46:54 +0000 I'm sure St George's offset account would be fully transactional Lisa, just as Westpac's is. (They are owned by Westpac after all). Their advantage package seems very similar to Westpac's (which I'm on as you've probably gathered by now). We also have a $395 annual package fee. I'm currently paying 5.11% which is 0.7% off their standard variable.…[Read more]

]]> f4bbb50667226699bfd0acf374479a5f StumpCam replied to the topic LOC vs 100% offset account for PPOR that will become IP in the forum Finance https://www.propertyinvesting.com/topic/4397083-loc-vs-100-offset-account-for-ppor-that-will-become-ip/#post-4608410 Wed, 26 Aug 2009 07:22:55 +0000 Hi Lisa, Westpac certainly has a fully transactional offset account. Offset accounts should be the only place all your private stuff sits. The LOC should only be used for investments. It's a great way to fund the 20% deposit required by the banks plus all the other costs, ie legals, stamp duty etc. It also can be used to fund extras along the…[Read more]

]]> a52629d5cb074c0f129b5c7775989967 StumpCam replied to the topic Pay LMI or create LOC for deposit on 2nd IP?? in the forum Finance https://www.propertyinvesting.com/topic/4397057-pay-lmi-or-create-loc-for-deposit-on-2nd-ip/#post-4608245 Wed, 26 Aug 2009 02:36:37 +0000 Kyla you can afford quite a nice new four bedroom home for 450k if you're prepared to live a bit on the fringes, eg Heathwood/ Forest Lake etc. It's still only a 25 to 45 minute commute to the CBD from Heathwood depending on the time of day (23km). You can also buy new 3 bedroom townhouses for ~380k at Durack for example (17km from the CBD). My…[Read more]

]]> 0d824620de1f9eaac8a12737330bedfd StumpCam replied to the topic Pay LMI or create LOC for deposit on 2nd IP?? in the forum Finance https://www.propertyinvesting.com/topic/4397057-pay-lmi-or-create-loc-for-deposit-on-2nd-ip/#post-4608242 Tue, 25 Aug 2009 08:27:08 +0000 Kyla setting up the LOC is a good way to go. It's what I do. Your total borrowings will be the same if you set up an LOC. You can use the LOC to help pay for expenses etc. This should reduce your second loan and its LMI, and hence increase your borrowing power a bit. Paying LMI is fine in a rising market. As you say, it's much better to get in as…[Read more]

]]> 7e7a51b215f26ae4022d9cf4901892f6 StumpCam replied to the topic Pay LMI or create LOC for deposit on 2nd IP?? in the forum Finance https://www.propertyinvesting.com/topic/4397057-pay-lmi-or-create-loc-for-deposit-on-2nd-ip/#post-4608237 Mon, 24 Aug 2009 05:12:52 +0000 Hi Kyla, If you keep your LVR on your first IP to 80% then your total borrowing will be 80% of 380k = 304k. That means you can only increase your borrowings against that property (in the form of an LOC) by 12k. This can be used to fund the second. If you were to keep it under 80% LVR, you would only be able borrow 80% of 440k (assuming it va…[Read more]

]]> 4e7c02e0f71a9e746ef61b92cc132a7a StumpCam replied to the topic Using Equity In Your PPOR As A Deposit in the forum Help Needed! https://www.propertyinvesting.com/topic/4396510-using-equity-in-your-ppor-as-a-deposit/page/3/#post-4605436 Wed, 05 Aug 2009 01:14:43 +0000 Hi Gez, I agree there's no need for a savings account, but discipline isn't really relevant when comparing accounts (Richard). It's simply the best place to park any spare cash. I only use offset accounts. You really don't want any unnecessary accounts if you're paying fees (I don't pay any with my pro package) plus there's all those statements…[Read more]

]]> 3b7aa1ea4efa317a0356fba940ba06ca StumpCam replied to the topic Using Equity In Your PPOR As A Deposit in the forum Help Needed! https://www.propertyinvesting.com/topic/4396510-using-equity-in-your-ppor-as-a-deposit/page/2/#post-4605433 Sun, 19 Jul 2009 07:51:04 +0000 Gez it's fine to pay off your PPoR loan or save it; it's all good equity of one form or another towards your next IP. Every single dollar of equity you create by either paying off your loan, putting into an offset account or simply waiting for capital growth means that you can borrow another four towards your next IP. You'll probably be surprised…[Read more]

]]> 29b8b6ece39c24e983acb84ba604bdc8 StumpCam replied to the topic Using Equity In Your PPOR As A Deposit in the forum Help Needed! https://www.propertyinvesting.com/topic/4396510-using-equity-in-your-ppor-as-a-deposit/page/2/#post-4605431 Thu, 16 Jul 2009 06:33:40 +0000 Sorry Gez, been away for a while. The concept is a lot more general than just one property. Borrowing to the maximum possible simply means buying as many properties as you can within the limits of your equity and debt servicing capability. You are simply trying to maximise the total capital you control. The exact percentage borrowings for each pr…[Read more]

]]> 40d547175ea9a7753a39c1289a78e71c StumpCam replied to the topic Property Investing through Self Managed super funds in the forum Creative Investing https://www.propertyinvesting.com/topic/4396586-property-investing-through-self-managed-super-funds/#post-4605813 Thu, 09 Jul 2009 22:45:08 +0000 Hi Sandy, Stuart has good info on this in his latest newsletter: http://www.prosolution.com.au/news/newsletter.htmCheers, S/C

]]> 8b3fa4d192ba352b381f41d7df37b69b StumpCam replied to the topic Using Equity In Your PPOR As A Deposit in the forum Help Needed! https://www.propertyinvesting.com/topic/4396510-using-equity-in-your-ppor-as-a-deposit/page/2/#post-4605428 Wed, 08 Jul 2009 08:57:11 +0000 gezzy wrote:
I'm just curious, in relation to your above post, how does borrowing the maximum amount possible give you a larger potential for capital growth?CheersGez

Hi Gez, I'll put my 2c worth in and try to answer that: Borrowing the maximum means you have the maximum possible value of property in your name. If all your properties increase i…[Read more]

]]> cb2fa729b28c8a030383c61c72c3f8c7 StumpCam replied to the topic How long do you think until my property becomes cashflow positive? in the forum Help Needed! https://www.propertyinvesting.com/topic/4396272-how-long-do-you-think-until-my-property-becomes-cashflow-positive/#post-4604204 Thu, 21 May 2009 05:50:36 +0000 It's pretty simple DodoL; you just look at your net income (ie after tax) with the property compared to your net income without it. It should be greater with the property if you are CF+. The reduction in tax you pay if you're negatively geared, or the increase in tax you pay if you're positively geared is just part of the bottom line, ie your net…[Read more]

]]> 7c9e1703dcb3d52246f36788c89e4910 StumpCam replied to the topic Transfering title of home to a spouse in the forum I've been thinking about https://www.propertyinvesting.com/topic/4395301-transfering-title-of-home-to-a-spouse/page/2/#post-4598720 Thu, 12 Feb 2009 04:06:03 +0000 I've been thinking about buying my next IP in my wife's name, for asset protection reasons and because I've just crossed over the land tax exemption threshold, so I've done a bit of an analysis which shows the cumulative cash flow after tax for various incomes, ie 0, 15k, 60k, and 100k, and various number of years, ie 5, 10 15 and 20. I'll paste…[Read more]

]]> 61e4a5c56d553850c30a68a80c2e2d0c StumpCam replied to the topic Have I stuffed up already in the forum Bomis, just to give you https://www.propertyinvesting.com/topic/4395359-have-i-stuffed-up-already/#post-4599050 Mon, 09 Feb 2009 02:33:42 +0000 Bomis, just to give you some perspective, I've run a few numbers through my simulator. As Terry says, negative gearing isn't that negative now interest rates have come down so much, and it's nowhere near as critical to keep the property in the higher income earner's name.  Say you purchase a 400k property that you're getting 400/w rent, ie 5.2% g…[Read more]

]]> effda730fef0f05bfe103cb14f460b5f StumpCam replied to the topic Is it best to buy a CHEAPER or more EXPENSIVE PPOR if you want to grow a property portfolio? in the forum Help Needed! https://www.propertyinvesting.com/topic/4395293-is-it-best-to-buy-a-cheaper-or-more-expensive-ppor-if-you-want-to-grow-a-property-portfolio/#post-4598629 Mon, 09 Feb 2009 01:58:24 +0000 Ty,  Investment properties are a much more efficient generator of wealth than a PPoR (due to tax detectability of expenses and income from rent of course), so if your main concern is building wealth as soon as possible, then as Terry says, keep your PPoR as cheap as possible. At least you won't be paying rent, and you'll have the security and s…[Read more]

]]> f69ea8ec3337c243453f4e882740de5f StumpCam replied to the topic Moorooka - Brisbane in the forum I think the new "Green https://www.propertyinvesting.com/topic/4395174-moorooka-brisbane/#post-4597909 Tue, 20 Jan 2009 02:55:36 +0000 I think the new "Green Bridge" to the uni is helping Yeronga too. Moorooka is pretty close, but maybe it's on "the wrong side of the tracks" with the Beenleigh rail line being such a big dividing line. Annerley may be a bit closer to the action, but it's already pretty expensive. I think Moorooka would be a good bet in the long…

]]> 5f3c80d1419c9c6112fe8c01be3fb01b StumpCam replied to the topic Creative financing or just plain false advertising? in the forum Finance https://www.propertyinvesting.com/topic/4395142-creative-financing-or-just-plain-false-advertising/#post-4597811 Mon, 19 Jan 2009 01:43:09 +0000 Of course Scott, that's the whole Idea. Instead of using their shonky system to reduce the payments in the early years, you control it yourself via your offset account buffer. You let the balance run down by not covering the interest fully. It's all about making the loan more affordable for a limited period. Whether this is a sensible strategy or…[Read more]

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