[TheNewGuyParticipant@thenewguyJoin Date: 2014Post Count: 151]

August 21, 2016 - 9:35 pm

Ask the agent. That’s what they are paid for.

[TheNewGuyParticipant@thenewguyJoin Date: 2014Post Count: 151]

August 14, 2016 - 5:45 pm

I bought in Ballarat 2 years ago. Happy with the purchase then but not sure if I’d go there now if I didn’t already own a house (I wouldn’t buy 2). Probably a few individual properties but would be harder to find. Rental market seems a bit flat too.

So while it’s different for everyone I’d lean towards no, I wouldn’t buy there at the moment. If you feel comfortable to detail some of these positively geared properties we might be able to provide better advice. Maybe one that’s sold so people can’t steal it :)

[TheNewGuyParticipant@thenewguyJoin Date: 2014Post Count: 151]

July 20, 2016 - 3:44 pm

I fix my loans. Pro and cons with doing that. I just fixed mine for 4.3% for 3 years interest only.

You can’t raise rent if the tenant is under a lease (as far as I’m aware) unless it’s stated in it, even if they are not on a fixed lease you can only go to market rent. At least in the ACT.

[TheNewGuyParticipant@thenewguyJoin Date: 2014Post Count: 151]

June 14, 2016 - 7:02 am

You can redraw from investments so you’ll be ok there. But from a tax perspective you’ll have all your ppor as non deductible debt – not necessarily a bad thing in the overall strategy though.

Unemployment is high and the towns a bit small for my liking. Is it close to other towns so people might commute from your place? Sydney is probably a bit far. If it’s positively geared and you believe government investment will increase value then it sounds ok

[TheNewGuyParticipant@thenewguyJoin Date: 2014Post Count: 151]

June 12, 2016 - 11:45 am

Renting and investing elsewhere is a perfectly fine strategy, but immediately I thought of the following option – and since I don’t know your age, where you live (maybe Sydney?), whether you want to get married / kids etc, local house prices, whether you could get the FHOG etc… it might not be the right one. Also, as my name suggests, I am only relatively new too.

Buy a home – $500k. Use all $200k as a deposit. $30k in Offset (less stamp duty etc) – might not leave much depending on where you live.
Redraw $100k for investment purposes from your home.
Buy $400k investment property, from the $100k use 20% deposit, stamp duty, etc.
Let you brother pay you board to help cover your mortgage.

Loans:
$300k – Non Deductible home loan. PPOR.
$100k – Tax deductible purchase costs for IP. Held against your PPOR. Interest only.
$320k – Tax deductible 80% loan on your IP. Interest only.

Now you have $900k in property, $720k in loans, but only $300k in non-deductible debt and $420k of interest you can claim on your tax. You have rent coming in from your IP, and your brother to help cover your mortgage rather than a landlord somewhere.

Lots of things to consider going this path though.
– Will you be buying a place where you want to live for a long time?
– Will your PPOR still be a reasonable investment?
– Can you buy a house for $500k that you want to live in for a while?

In regards to the capital gain you outlined, is that where you are thinking of investing – is houses, units or both? It seems very unstable if it is. Imagine buying in 2012 and having to sell in 2013? You’d be a long way behind after buying and selling costs, and then depreciation.

[TheNewGuyParticipant@thenewguyJoin Date: 2014Post Count: 151]

June 11, 2016 - 8:17 am

There is no point holding a negatively geared property that has little to no chance of making a return on the short term. While it might hurt to think you’re losing money by selling it’ll hurt more by holding it longer.

Why is the rent so low? Especially property B? $270/week for a $500K house is an absolute steal. Are the tenants on a lease because it might be hard to sell with that sort of return.

[TheNewGuyParticipant@thenewguyJoin Date: 2014Post Count: 151]

June 11, 2016 - 8:07 am

I’m just curious about where you live, do you rent? Do you want to buy?. If you plan on buying a house to live in in the short term it might change your plan.

For me total return also includes capital gain, so 1% in a regional area with no growth isn’t anywhere near as good as a neutral property with 7% capital growth. This is especially true if I have high serviceability but low deposits as I can redraw on the growth for the next property.

• This reply was modified 7 years, 10 months ago by  TheNewGuy.

[TheNewGuyParticipant@thenewguyJoin Date: 2014Post Count: 151]

June 7, 2016 - 6:35 pm

I’m not sure what others will say but there is an element of truth in what you say. Back 15 years ago you could have bought anywhere and made a profit – the amount varied though. But the current market is much tougher and everyone wants to get rich off property in a short time frame. I don’t think it’s as easy or realistic anymore, but it can be done it just takes more effort and a longer amount of time.

[TheNewGuyParticipant@thenewguyJoin Date: 2014Post Count: 151]

May 28, 2016 - 10:19 pm

Speak to a solicitor ASAP! If you can’t void the contract due to the pests, most have the ability to do it on finance, and I would just claim that.

[TheNewGuyParticipant@thenewguyJoin Date: 2014Post Count: 151]

May 27, 2016 - 9:28 pm

That response made me laugh, I’d probably go with less honesty if you want to sell anything in the role! Since you’re a subcontractor you’ll need all of your own insurances.

[TheNewGuyParticipant@thenewguyJoin Date: 2014Post Count: 151]

May 27, 2016 - 6:19 pm

Sounds like a crap job I’d keep looking. From an employment perspective I guess you’re a subcontractor so that’s how they get away with not paying you for anything.

[TheNewGuyParticipant@thenewguyJoin Date: 2014Post Count: 151]

May 27, 2016 - 8:04 am

In regards to increasing rent there are a few threads on that already. Initially I would talk to a real estate in the area and get their opinions. But other than renovations, you could look at pets, group share (nearby uni), solar panels etc. None are without roan though.

The other option is to reduce your repayments. Interest only, lower rate etc.

By the sounds of it you don’t have a great deal of equity in the property? Do you have enough to get a deposit for you home? Could you afford your own home if you didn’t sell?

[TheNewGuyParticipant@thenewguyJoin Date: 2014Post Count: 151]

May 26, 2016 - 11:32 pm

My advice is definitely not professional! But it would come down to specifics – how much income will the apartment generate (net income, Ie less expenses and tax), what loan amount your income(s) will allow and whether you think the apartment is a ‘good investment’ – capital gain etc.

All I will add is the more property you own the greater the capital benefit. Ie. If you keep the apartment and property goes up 10% that year then you’re better off having more than less. Finally, there is a difference between making money (rent) and saving money (less home loan repayment).

That probably didn’t help!

[TheNewGuyParticipant@thenewguyJoin Date: 2014Post Count: 151]

May 26, 2016 - 6:55 pm

Definitely a yes for separating ppor and ip loans. Depends for separating across banks.

[TheNewGuyParticipant@thenewguyJoin Date: 2014Post Count: 151]

May 25, 2016 - 10:50 pm

Definitely still depreciation. I bought a place that was 20 years old and still claim thousands per year.

[TheNewGuyParticipant@thenewguyJoin Date: 2014Post Count: 151]

May 25, 2016 - 10:08 pm

Not sure about Adelaide but I have found that allowing pets does provide a small increase in rent, but it comes with additional risk.

When does the 2 year fixed period end?

If your mother is still working then there is capital depreciation – you’ll need to get a report done.

In general I agree with you and selling sounds a bit risky. It might seem harsh but you don’t want your mother to split with the boyfriend and have no home. Chances are any cash made from the sale would get spent and she might end up with nothing.

[TheNewGuyParticipant@thenewguyJoin Date: 2014Post Count: 151]

May 25, 2016 - 8:45 pm

$100k equity should be enough to get a deposit ($80k accessible, maybe some LMI) then it’s a matter of serviceability. So depending on your incomes you could be in a position to buy an ip now.

[TheNewGuyParticipant@thenewguyJoin Date: 2014Post Count: 151]

May 24, 2016 - 4:14 pm

If you have a ppor then you should not use any cash to buy an ip. So if I have a ppor with $300k owing and I win $100k, then I pay down my PPOR by the $100k and redraw a separate (key word) loan for business purposes which I use to cover all purchase costs (20% deposit, stamp duty etc). This loan is against your ppor. Then you get another loan at 80% held against your new property and you now have over 100% of the purchase costs tax deductible.

And your home loan that’s not deductible is also reduced.

[TheNewGuyParticipant@thenewguyJoin Date: 2014Post Count: 151]

May 24, 2016 - 11:13 am

Interesting question. The main issue I find is that the goal moves faster than you can save. For example, if it’s $100k and it takes 2 years for you to save that much in two years time it’s $150k, or worse it moves faster than you can save at all and you never reach it. The other factor is it depends on your goals and where you’re investing – Sydney would require more than regional areas.

At the moment I work on $100k as that allows enough deposit to buy something around $400k mark. But I don’t tend to have issues with serviceability either, which is another factor.

Not sure that really helped but I’d be interested in other opinions too.

[TheNewGuyParticipant@thenewguyJoin Date: 2014Post Count: 151]

May 22, 2016 - 6:04 pm

What would you do otherwise? It sounds like a good deal considering what you’ve mentioned. If it’s only 12 months that you might have to get a second job then it doesn’t sound too hard… I’ve always had 2 jobs (FT + PT).