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November 7, 2007 - 11:41 pm

more about your situation scarecrow, how leveraged are you? are you using equity to service debt?

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November 5, 2007 - 8:28 pm

Benjamin this is all beside the point!      at the end of the day any landlord can experience unfortunate incidents, we could also get run over on the street and you have little chance to stop either really apart from not walking on the road or not owning an investment property!!

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October 28, 2007 - 8:28 pm

AS I understand the CGT he would only pay if he sells the house to you for a profit on what he bought it (a capital gain) If he sells it to you for the same price i don't believe there will be any CGT on the hand over.  Just like if someone sells a house undervalued, he doesn't pay extra tax because the value in effect might be higher. Does this sound right to everyone else? I am not 100% on this, might be worth speaking to a tax agent.

You will be hit for two stamp dutys, but you may have to cop this if this is the only way you can service the loan? Is it not possible for your dad to go guarantor on the deal? You will  be eligible for FHOG even if this is the case. Best to check with a broker first though!

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October 17, 2007 - 4:41 am

what he's saying is that the valuation came in 25k less than the price he offered, which will affect what he can borrow as the bank will lend you either the purchase price or the valuation WHICHEVER IS LOWER.   when a valuater looks at the property they base it on comparable sales, as well as cosmetic improvements but it is not uncommon for purchasers to find themselves over valuation in a strong market. As an investor you should be very wary walking into this deal, you make the majority of your capital gains in the first year or two from buying under value. I would offer less or look for another property that is going to fit what you are after better.

Alternatively you can try and finance with another bank, who will send another valuater but you will probably find yourself in the same position.

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October 16, 2007 - 10:17 pm

all services will be on when you get there, just ring when you settle and let them know you are moving properties

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October 16, 2007 - 10:11 pm

At the end of the day, is buying ex housing commisson houses really worth it? I can understand looking for good cheap yielding properties but when the maintenance goes through the roof due to vandalism etc. is  it worth it?  please discuss further

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October 16, 2007 - 10:03 pm

Would cost you an absolute mint to develop the 4 blocks (full acre) is there a market for it in holbrook? (sorry i dont know much about the area) don't want to move too early on something that size because when it comes time to sell you want to be maximising profits for the project. 

if your desperate for money you could sell it to a developer or even partner up, or alternatively you can  subdivide and sell the land in smaller blocks.. 

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October 16, 2007 - 5:40 am

http://www.ironwood.com.au (formerly known as roselle recycled woods)

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October 16, 2007 - 5:37 am

try paying for it like the rest of us

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October 16, 2007 - 5:27 am

Could you share the course information vicgirl please ? I am interested in this also THANKS

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October 12, 2007 - 3:55 am

With the tightening of lending criterior in the lo-doc tier it will be very hard to get finance for any more then 60% Definitely not with prime lenders, you could try no-doc but i don't think it would be allowed.

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October 11, 2007 - 9:42 pm

Definitely agree with linar. Have you spoken to other REA about your property ? I can't imagine why it would take 7mths to sell unless they are not doing their job properly or its just too expensive!

I may be looking at purchasing can you forward me the details? Maybe you can drop the agent and we can sell privately and we can halve the sale cost off the price?

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October 11, 2007 - 9:36 pm

What area is it in? If you are worried about it find someone to buy you out for the 10 grand you put in and to take over the contract.

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October 11, 2007 - 5:05 am

Where abouts is the property if I may ask ? what price range

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October 10, 2007 - 4:04 am

Trail commissions are lost on refinancing too!

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October 9, 2007 - 5:23 am

you can do that ?

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October 8, 2007 - 10:00 pm

I think our next growth cycles will be more of a steady growth rather then the crazy boom we experienced last time. Booms tend to alternate, you usually see a high ramping boom, followed by a slow steady boom; but as time goes on and people grow older and the next generation come into play then people jump on the wagon and we experience another high ramping boom. Alot of people still remember being burnt from 4 years ago buying at the wrong time..

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October 8, 2007 - 7:53 am

if you were successful last time why wouldn't you??  to me its a no brainer

p.s you dont have to sell it! borrow the money to renovate and re-finance and rent it for some more to help cover the interest costs!   ((assuming you have another income to facilitate the loan)) use the extra money you have gained to renovate another property

p.p.s if you dont want to sell it, but cant afford extra repayments just give it a paint and sit on it mate

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October 8, 2007 - 7:30 am

nvme8 wrote:

Tax deductions on redrawn interest. . . If I decide to draw down 50k from one of my IP's equity, can I still get a tax deduction on the additional interest that is attracted? If not my positive cash flow position could be turned negative very quickly and in extreme cases I could get stuck in a downward spiral of redrawing to supplement an ever increasing negative cash flow issue. This could end up with me having to sell all IP's and walk away with almost nothing.

As i understand it,  you would only draw down enough that the increase in rent each year will cover  the extra costs as the years go by.

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October 8, 2007 - 7:25 am

Does that count as a form of income Marc? Is there a need to pay tax on this draw down? Also  keeping in mind that any equity you draw against will incur extra interest so if you are using that strategy to get out of working then you would need to be in a better position then cashflow neutral ?

Sorry if I'm confusing the situation