[SundanceParticipant@sundanceJoin Date: 2012Post Count: 57]

March 3, 2014 - 6:58 am

The Newbie Investor wrote:

Hey Jamie

Thank you, I am confused about the tax deductible and non deductible side. So if I had a PPOR with interest and principle loan and decided to buy a new property  to live in, would it be bad to rent out my PPOR, be better off just buy and hold strategy and sell it than rent it.  Man these structures get confusing on how to buy with IP and PPOR ….

 

Repayments on your PPOR loan are not tax deductible, regardless of whether it's principal and interest or interest only.

Interest payments on an IP are tax deductible.

Hope this simplifies it.

[SundanceParticipant@sundanceJoin Date: 2012Post Count: 57]

March 3, 2014 - 4:07 am

DerekLangan wrote:

Why would recommend Jamie?  Just wondering if it would be worth speaking to someone long distance or trying to go locally

If you look back through the forum posts you'll see that Jamie is a well respected broker for a lot of property investors who use this forum.  When I bought my first investment property I did it without a broker.  When it came time to purchase my second IP I realised that the properties had been cross collaterised.  Jamie was able to sought this out for our second loan and also negotiated with our bank to get us a lower interest rate on our first loan.  I'm in Qld and our second IP was in NSW.  All communication was done by phone/email.  Have since been in touch with Jamie to go over a few scenarios for purchase of IP3.

Cheers,

Sundance

[SundanceParticipant@sundanceJoin Date: 2012Post Count: 57]

March 3, 2014 - 3:36 am

Hi Derek

In this day and age there's no need to find a broker in your local area.  I'm in Qld and can recommend Jamie M who helped me with previous purchases.   He'll run through all the options for you.  Can all be done by phone/email.

Cheers,

Sundance

[SundanceParticipant@sundanceJoin Date: 2012Post Count: 57]

February 27, 2014 - 10:38 am

Hi Polaris,

I understand that you are caught between a rock and a hard place because there is a child involved and no-one wants to see a child suffer and this person knows this and is using it to their advantage.

You've tried politely asking them to move on and they keep stretching it out and you don't really want to have to evict them.  So instead of asking them why not state to them very clearly that you require the property on such and such a date, giving them reasonable time to find alternative accommodation.  Make it very clear that you're not giving them an option on the date, you're telling them the date that you need the property back. 

If they are in such dire financial circumstances perhaps it's best that they seek professional help from some charity organisations that are able to provide food and accommodation.  You could even make the phone call if they are unwilling.

As you said the relationship is almost ruined anyway so you've got nothing to lose, except your own money if you don't take action.

Cheers,

Sundance

 

[SundanceParticipant@sundanceJoin Date: 2012Post Count: 57]

February 10, 2014 - 12:20 am

Have sent a PM to tyler_durden76au

Books have already been sold.

Cheers,

Sundance

[SundanceParticipant@sundanceJoin Date: 2012Post Count: 57]

August 24, 2013 - 9:50 am

Thanks Catalyst, you've answered my question perfectly!   

[SundanceParticipant@sundanceJoin Date: 2012Post Count: 57]

May 11, 2013 - 9:30 am

Thanks Jamie, that makes sense.  Should I now pay the extra to bring it back down to $60k?  At the moment I've set up a direct debit to pay it but in future am I better off waiting to see what the interest charge will be and then making the payment accordingly or just pay a bit extra each month?

[SundanceParticipant@sundanceJoin Date: 2012Post Count: 57]

April 13, 2013 - 6:36 am

That's great news Jamie and I love her name!  The sleep deprivation only lasts a few years if you're lucky.  In the blink of an eye she'll be 18 and saying "Hey Dad, can I borrow the car?" and then it starts all over again!

Also congratulations to Big Sis.

Enjoy!!!!!

[SundanceParticipant@sundanceJoin Date: 2012Post Count: 57]

March 28, 2013 - 10:53 am

RPI wrote:

Part of slater and gordon solicitors. They will probably charge you to talk about your issue though.

Ok, didn't realise they were part of Slater & Gordon.  My error, just didn't check.  Wouldn't have used them had I realised as we've just used S&G in NSW to buy an investment property and I wasn't very impressed with them.

Thanks for your advice, will see what happens in the coming week.

[SundanceParticipant@sundanceJoin Date: 2012Post Count: 57]

March 28, 2013 - 10:23 am

RPI wrote:

Conveyancers do not exist in qld. Only solicitors can do conveyancing in qld. D

We're using Conveyancing Works.

[SundanceParticipant@sundanceJoin Date: 2012Post Count: 57]

March 28, 2013 - 8:48 am

Thanks for that info, much appreciated.

We are dealing with a conveyancer for the sale, not a solicitor.  So what  you're saying is that if settlement doesn't take place we will need to see a solicitor to take it further?

Cheers,

Sundance

[SundanceParticipant@sundanceJoin Date: 2012Post Count: 57]

March 28, 2013 - 8:45 am

Hey there Jamie,

Thanks for that info.  Am trying to give them the benefit of the doubt and of course I'm hoping that it's just a hiccup and that settlement will actually take place but just trying to be prepared for all outcomes.

Tamworth property going well for us.  You must have your new baby due in a week or so?

Cheers,

Sundance

[SundanceParticipant@sundanceJoin Date: 2012Post Count: 57]

March 28, 2013 - 8:42 am

Hi Terry,

All they've paid is $1k deposit – purchase price of land $220k.   Will check out contract.

Thanks for your help

[SundanceParticipant@sundanceJoin Date: 2012Post Count: 57]

March 24, 2013 - 11:20 am

Thanks Terry.  I hear you about SMSF but we already have the two IP's purchased in our own names.

Cheers

[SundanceParticipant@sundanceJoin Date: 2012Post Count: 57]

March 24, 2013 - 10:14 am

Terryw wrote:

WHy have a PI loan at all. IO with offset may work better.

The only reason not to get an IO loan with offset like this is if you are tempted by large amounts of cash.

It is never a bad idea to pay down loans, but you never know when you may need cash for something unexpected.

When we first looked at investing in property our goal was (and still is) to outrightly own two investment properties so that the rent would supplement our income from super.  If we were twenty years younger I can see the benefits of keeping the loan IO with the extra in the offset in case we wanted to purchase further IP's.  But as we're getting closer to retirement we are wanting to at least get one IP paid off so the race is on.  Perhaps for now we should just pay down say $150k and add the remaining $50k to the funds already in our offset.

[SundanceParticipant@sundanceJoin Date: 2012Post Count: 57]

March 24, 2013 - 6:02 am

Mmmm………..now I'm getting myself confused!

If I paid the $200k off the $285k investment loan and then switched it to P&I then the principal portion of the repayments would be calculated on $85k.

If I put the $200k into the offset instead and switched to P&I wouldn't the principal component of the repayment be calculated on $285k which would be a lot more than the first option?  Obviously the interest component would only be calculated on $85k because of the funds in the offset.

Confusion reigns!  Help!  I don't think I'm looking at this correctly.

[SundanceParticipant@sundanceJoin Date: 2012Post Count: 57]

March 24, 2013 - 5:41 am

Hi Terryw,

I was hoping you would pop in with some advice!  I think you've just answered my question in regards to whether to buy PPOR or IP.  We will definitely now buy PPOR.

In regards to paying the $200k off the investment loan and then switching to P&I – I guess we were assuming that we wouldn't have any need for the cash in the future so were just looking to pay down some of our investment debt.  So the best thing to do would be to just hold it in the offset account for now and switch to P&I which in effect will achieve the same thing?

Cheers,

Sundance

[SundanceParticipant@sundanceJoin Date: 2012Post Count: 57]

March 24, 2013 - 4:44 am

APWPG wrote:

Hi Sundance ,I think you need a good Financial planner who knows what he is doing ,specially a property servy one .

Thanks for your advice Bill.  Can you recommend a property savvy FP in Brisbane? 

[SundanceParticipant@sundanceJoin Date: 2012Post Count: 57]

February 18, 2013 - 9:35 am

We've just bought our second investment property and this one was purchased sight unseen. 

We live in Qld and the property is in Tamworth.  Do lots of research on the area you're interested in and look at sold prices of similar properties.  Look at how many properties are available for rent etc.  Also make sure you do a pest and building inspection.  Make use of google maps and look at not only the street the house is in but the surrounding streets, main roads, suburbs, proximity to schools etc.  Also get the estate agents to take lots of pics for you.

Buying sight unseen is not for everyone but we were happy that we did as much as we could without actually seeing the property.

Good luck,

Sundance

[SundanceParticipant@sundanceJoin Date: 2012Post Count: 57]

January 24, 2013 - 10:33 am

Nigel Kibel wrote:

I tend to use AAMI because on building insurance they do full replacement cover so you do not have to worry about being under insured. 

Many Australians in the past have been underinsured which has left people under insured by thousands in  some cases. Also stick to the major insurers my experience is that they pay out

Thanks Nigel, great advice.  Will check AAMI out.