Total Members: 148,962

Bjoern

  • Hi, do you know any good buyers agents in the US who work with clients in AUS?

    Also, do you have any other syndication projects planned?

    Thanks for all your input. Great that you decided to give back to the community here. This thread was a very interesting read.

  • Hi all, I’m considering to invest in the US after reading the article from Todd Hunter in the YIP magazine. Does anybody have any experience with Todd that you could share? And does anybody know of others who provide a similar service?

    Thanks already!

  • Thanks for all your responses, guys!

    @pascoe: Agree, I probably overcomplicated it and in the end we’re probably discussing about max a few $100 difference anyway. But also wanted to get feedback if my thinking is correct. And I don’t think the interest on a savings account is that much lower. I get 3.15% at RAMS right now and the loan was 3.69%…[Read more]

  • Hi Colin,

    thanks for your quick reply. I think my last post was maybe not that clear, so now using some numbers as an example. So, assuming the following:
    Rental income per year: $10k
    Interest paid on the loan plus other cost: $8k
    –> Profit from property $2k, so tax has to be paid on $2k income from the property

    Now, we also have savings that…[Read more]

  • Thanks Colin. But isn’t the saved interest in an offset account not also technically taxed? If your property is positively geared, you pay tax on the surplus, if it’s negatively geared you reduce your taxable income by the amount of the loss. So, if you pay less interest on your loan due to savings, your property gets more positive or less…[Read more]

  • Thanks Colin. But isn’t the saved interest in an offset account not also technically taxed? If your property is positively geared, you pay tax on the surplus, if it’s negatively geared you reduce your taxable income by the amount of the loss. So, if you pay less interest on your loan due to savings, your property gets more positive or less…[Read more]

  • Bjoern replied to the topic Use of credit cards in the forum Finance 3 years, 3 months ago

    Hi Terry, I’ve posted about this here:
    https://www.propertyinvesting.com/topic/5028580-is-an-offset-account-worth-it/

    If the variable is indeed lower than fixed, then my whole calculation doesn’t make sense anymore. But our mortgage broker suggested Newcastle Permanent and their variable is 4.17% and 2-year-fixed is 3.74%

  • Hi, I’ve just made the decision not to go with an offset account with my loan for my first investment property and wanted to outline my thoughts around this to see what other people think. I always thought an offset account is a great idea, but once I did the maths, it didn’t look that great anymore.

    A few assumptions first:
    Fixed rate: 3.74% for…[Read more]

  • Bjoern replied to the topic Use of credit cards in the forum Finance 3 years, 3 months ago

    Thanks guys, will definitely have a look at the book. Talking about offset accounts, brings me to another question, but maybe it’s better to post this in a separate thread since it’s a different topic. I am just about to buy my first property and decided to fix the whole loan, i.e. not having any part of it on a variable rate with an offset…[Read more]

  • Bjoern replied to the topic Use of credit cards in the forum Finance 3 years, 4 months ago

    Yes, I wouldn’t plan to finance the deposit using this approach. We got our loan approval with our genuine savings already. I was just thinking of using these savings to put into the offset account instead in order to reduce the interest payment rather than for the down payment. So when there are issues with that approach you can still use that…[Read more]

  • Bjoern replied to the topic Use of credit cards in the forum Finance 3 years, 4 months ago

    Thanks, storybuilder. Makes sense. So you can’t do that forever, but maybe once or twice? Would still save a lot of money.

  • Bjoern replied to the topic Use of credit cards in the forum Finance 3 years, 4 months ago

    Thanks Richard, but it would be possible to pay using normal transfer / bpay from the credit card account. Then it is like a cash advance and the regular, huge credit card interest rate applies. But that can be avoided by transferring the balance to another credit card on the same day and have this money interest free for the 0% balance transfer…[Read more]

  • Bjoern started the topic Use of credit cards in the forum Finance 3 years, 4 months ago

    Hi, we’re just about to buy our first investment property and were thinking what ways there are to use credit cards to reduce the interest. Does anybody do this in any way?

    I was thinking of making use of the 12/18/24 month 0% balance transfers many credit cards offer:
    1.) Pay the deposit with a credit card
    2.) In order to avoid the interest on…[Read more]

  • Definitely not an expert myself, so just thinking out loud ;-) But wouldn’t it still make sense to spend the $10k assuming you can find something that really adds value? After all, it’s not like you pay the $10k and don’t get anything back, the property will be higher in value (ideally even more than $10k higher) and – as a bonus – you will also…[Read more]

  • Definitely not an expert myself, but wouldn’t it still make sense to spend the $10k assuming you can find something that really adds value? After all, it’s not like you pay the $10k and don’t get anything back, the property will be higher in value (ideally even more than $10k higher) and – as a bonus – you will also have something to depreciate.…[Read more]

  • Thanks guys!

    Terry, their fee structure is a bit “different”. They ask you to become a member and if you are you have access to their deals and you can do as many as you want. Not sure exactly about the fees anymore, but I think it was 3k for one year, 5k for 3 years or 7k for 5 years. I didn’t ask for the exact commission they get, was enough…[Read more]

  • Haven’t heard from anybody else, but I decided not to go ahead with them. First, I heard from so many sides that you shouldn’t invest in new developments and they solely propose new developments. Second, I asked them if, on top of the fee that I would pay them, they get commission from the developers and they do, so I didn’t like that they are not…[Read more]

  • Thanks Benny

  • Bjoern replied to the topic Buying first IP in the forum Help Needed! 3 years, 10 months ago

    Just wondering about this. Since I’ve started to look into properties I have probably read this or similar comments hundreds of times, but I never really understood it. If you find a property that gives you a nice cash flow or one with a high probability to increase in value, what kind of people would that not work for? Sure, some people might…[Read more]

  • Thanks for your answers guys.

    What would you say are the risks with OTP compared to established? Is it mainly the risk whether it will be a popular place to live in since no one has lived there before? On the other hand you would expect to have less cost for repairs with OTP, I think.

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Bjoern

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