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

March 9, 2016 - 12:44 pm

I live in canberra and I would not be buying an apartment here at all let alone off the plan. To be honest, for the same price you could get a house in Brisbane. I’d go with something like that.

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

February 24, 2016 - 7:26 pm

Hi Vardy

Looks like you’re getting plenty of advice. I’ll just add that CGT is only a problem when you sell and you can gain access to that equity as well through LOC’S etc which are tax free. So it’s not just extra rent you’ll get. For example if you’re positively geared you can get a LOC against the property for $X (say 50% of the equity gained that year) and use the rent to pay the interest (it’s not tax deductible or income tax free though). Eventually you can live this way.

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

February 23, 2016 - 7:40 am

Have you considered depreciation on the ppor as well? Is the positive cash based on 90% interest? After 2 years what would they LVR be based on your expected growth? What is the actual value of the property now, for example of it’s $1m and you’re expecting 10%+ growth that’s $100k a year while being positively geared. It’d like to make $100k a year without spending anything.

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

February 9, 2016 - 10:32 pm

If you said your last offer was your final offer then I would stick to it (money wise at least). You can’t say it’s my final offer and then offer more. I would probably go the opposite direction and say you’re a serious buyer but you’re getting pissed off with the back and forth, same amount but go a short settlement or something.

I must admit that it sounds like a good deal on the surface so I am worried that there is something wrong. Why would a positively geared (probably) property sit on the market for 12 – 24 months? It has a bit of an odd feel to me. I would double check my due diligence.

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

February 9, 2016 - 7:19 pm

The real question is – what is it worth? If you think is $115k+ then maybe $109k is good. I hate the back and forth, and I never do it. I offer what I think it’s worth and make it clear I won’t budge. I’ve walked away a couple of times and some of those I’ve had the agent call me back.

I would make one final offer and be prepared to walk. Maybe change the terms like settlement, or say you’ll pay more but want inclusions? I’ve got things like fridges, home theatre, couch etc.

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

February 7, 2016 - 11:37 am

Not that I think it will change the answer but what state is the property in? But I doubt you can increase the rent or get them to vacate without their consent in any state. Happy to be proved wrong though.

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

February 2, 2016 - 11:10 pm

What rate were you getting offered… more out of curiosity because I’m going through the same process. I am employed though, so that’s important.

I’m assuming you’re trying to get work. Maybe just wait it out?

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

February 2, 2016 - 10:51 pm

I’m not sure about what state you’re in, but where I live you can’t just evict a tenant without cause. Even if they are on a month to month agreement. However if they are not on a lease you can increase the rent to market rates and they either need to pay it, vacate or contest it. That is a minimum 8 week process here.

If you buy the property you also buy the leases. So asking for vacant possession might mean the owner needs to pay the tenants to leave. So, I would find out the state of the leases and if out of lease increase it to market rates. If in lease determine if a rate increase is included. Then figure out if that works for you.

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

January 31, 2016 - 6:15 pm

Does this worksheet help?

https://www.ato.gov.au/General/Capital-gains-tax/In-detail/Calculating-a-capital-gain-or-loss/Using-the-capital-gain-or-capital-loss-worksheet/

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

January 25, 2016 - 9:21 pm

When I first started out I wanted $100k net passive income (paying forever including CPI) before I retire. It’s changed a bit as my investments / work / family situation has changed. But I took that and worked backwards across all investments (and insurances). So far, so good.

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

January 9, 2016 - 8:04 am

In general I’d say ‘buy the problem, sell the solution’. If you reno that’s what you’re doing, if you buy a house and land package you’re buying someone else’s solution. So, as well as the issues mentioned above I’d go the reno option, especially since you can draw down the equity if you need it without selling (serviceability might be an issue).

• This reply was modified 8 years, 4 months ago by  TheNewGuy.

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

January 2, 2016 - 7:51 pm

https://m.realestate.com.au/property-studio-qld-woree-107265403

Address is
307/1 Anderson Road Woree, Qld 4868

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

December 30, 2015 - 3:59 pm

A few random points

– if you are happy where you are then I’d stay renting. It’s essentially free money and without doing the maths I would imagine you’d be better off financially if you stay and buy straight IPs (not your dream PPOR). You buy the PPOR later. Plus moving is annoying.
– blunt q. If the aunty dies do you have to move out? Just be aware that if you choose to stay you might need to move at short notice.
– where is the money invested now? Is the place in Newcastle rented? Does it have equity as well.
– how is your serviceability? Can you afford $1mil in IP loans – including rent earnt etc?

• This reply was modified 8 years, 4 months ago by  TheNewGuy.

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

December 20, 2015 - 8:57 am

In my opinion the likelihood of buying straight off a real estate / Internet and into a positively geared IP is near zero. The reasons are that other people will see them and push the price up. Maybe the real estates themselves, buyers agents who get in early through relationships, other investors etc.

You need to be a little bit more creative or simply play the long game. Renovations is an example, buy a house and renovate it, push the rent up enough to become positively geared.

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

December 14, 2015 - 10:31 pm

Hi Jo

Just letting you know that I read your posts and I’m glad everything is going well. Keep it up!

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

December 14, 2015 - 10:18 pm

Hey Sydneyguy

I can only talk about what I did… I hung around here and read a lot until the point where I felt confident about what I was doing (months). Then I started looking for a BA. A few general rules…

if they are trying to sell you something new / off the plan then I got worried.
If I couldn’t verify their history then I ran. I researched them before committing. Positively verified – had to prove they were good not disprove they were good.
If they didn’t have more money invested in property than I did, I was very worried.

Message me if you want more info.

• This reply was modified 8 years, 5 months ago by  TheNewGuy.

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

December 11, 2015 - 7:41 pm

A good buyers agent is worth their weight in gold. A bad buyers agent can be horrible and cost you a fortune. If you can find a good one then it’s worth it in my opinion. Plus there are agents on here who charge significantly less than you’re talking about.

The other point is they can buy where you don’t live so that can be very useful in finding a good IP elsewhere. In my experience a buyers agent saved me their fee on haggling the purchase price down. Finally, a good buyers agent gets first look at new properties through their relationship with agents. This means you probably only get access to the ones they turn down. The last property I got via a BA had the property purchased before it was advertised to the public…

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

December 11, 2015 - 7:51 am

Hi Tim

That’s pretty much how I do it. I have interest only IP loans and pay down my PPOR loan as much as possible. I then redraw a second / third / fourth loan to cover all the purchase costs of the new IP. I then repeat until I run out of serviceability / risk level. One of my IPs now has enough equity from capital growth where I could do the same thing.

You can get the growth from renovations as well. Just make sure you structure your loans correctly so your claiming 100%+ of the interest costs of your IP. Ie. $300k IP means you have over $300k of loans you can claim the interest on.

Oh also, the interest on loans for renovations is tax deductible. So don’t pay for that in cash. Add it to your PPOR then redraw a loan for the work. This decreases your tax liability.

• This reply was modified 8 years, 5 months ago by  TheNewGuy.
• This reply was modified 8 years, 5 months ago by  TheNewGuy. Reason: Can't spell good

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

December 2, 2015 - 9:52 pm

Thinking outside the box – have your brother complain to the council about the pets. I doubt that many pets is allowed in a city suburb.

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

November 18, 2015 - 10:04 pm

I would do a bit more research before jumping into anything, but $100k in equity is enough to start. Serviceability will come into play, but that might be ok.

$100k is my point where I buy another property.