[tlm1987Member@tlm1987Join Date: 2013Post Count: 31]

April 28, 2013 - 11:43 am

I dislike my bank at the moment too. I needed $360,000. The bastards only wanted to give me $310,000 (purchase price+costs). Apparently serviceability is why they wouldn't give me more. It's OK, I have two pay rises kicking in this year, one in 3 months and 1 end of December. They said I'll be right then.

– That's not ANZ though.

I'm thinking of buying ANZ shares; yes, they might be neglicting Australian customers, but a lot of talk about their penetration into Asian markets, so I like that. 

[tlm1987Member@tlm1987Join Date: 2013Post Count: 31]

April 19, 2013 - 11:46 pm

I think neutral is fine if it delivers capital growth like Shahin mentioned. It is better than negative because it ain't costing you anything, and it'll turn into positive geared property with a rent increase. I like the idea of neutral gearing.

[tlm1987Member@tlm1987Join Date: 2013Post Count: 31]

April 4, 2013 - 10:44 am

thumbs up; thanks Jamie

[tlm1987Member@tlm1987Join Date: 2013Post Count: 31]

April 4, 2013 - 8:42 am

Richard; I accept what you're saying about redraw amount, house I currently live in, won't be my long term PPOR. Given that, I will start putting money into savings account instead! I'm sure I knew this, but it ain't been clicking.

Would be be impossible for me to utilise the SMSF option, I'm only 26, and having done the uni thing for 6 years, the full time income only started recently! What kind of investment products are coming out Richard? 

[tlm1987Member@tlm1987Join Date: 2013Post Count: 31]

April 1, 2013 - 9:44 am

If you plan on making this your PPOR in 2 years, I'd go for the one you love. It will be nicer to go home to. Despite what some would say, I don't think buying property is all about the numbers. 

[tlm1987Member@tlm1987Join Date: 2013Post Count: 31]

March 31, 2013 - 3:57 am

Thanks Richard; 

For me, goal is to get to an IP (need about $10,000 more in the savings account to do it), but I liked the idea of putting little bits of money into a managed fund, with the ability to access it in my 40s or 50s, rather than contributing little bits to super and waiting til I'm 60. Either way, will keep sticking the cash in the redraw then and not worry about the managed fund. Thanks for your wisdom-

[tlm1987Member@tlm1987Join Date: 2013Post Count: 31]

March 29, 2013 - 10:16 am

if anyone updating, would be interested to hear about the future of Roma; how long does it have left?

[tlm1987Member@tlm1987Join Date: 2013Post Count: 31]

March 27, 2013 - 11:47 am

The tricks that tend to get re-stated in forum are:

1. ONLY pay INTEREST, not PRINCIPAL.

2. I would suppose that after a few rent increases, even $5 per year, you would take a property from neutral to positive fairly quickly. 

3. I seen my bank has a three year fixed rate at 4.99% now. I fixed mine at 5.32!!! I hate when things like this happen

4. You would also need closing costs for your purchase, not just deposit. I imagine the advice others will offer is, 5% deposit (10k) then the other 10k for stamp duty and legals, so your loan would be 190k, not 180k.

Others in forum far more knowledgable, but that will get the ball rolling I'd imagine

[tlm1987Member@tlm1987Join Date: 2013Post Count: 31]

March 18, 2013 - 6:31 am

If owing 120k, and worth 145k – you need to remember, you wouldn't be able to take 25k away with you as the costs to sell the property would be about 10k.

What town are they in?

[tlm1987Member@tlm1987Join Date: 2013Post Count: 31]

March 18, 2013 - 6:26 am

I got it when I purchased my PPOR last year. I was pretty naive, and sus on it, but I directly asked my conveyancer and she told me that she doesn't get any commission or kick backs from using it, so given she had nothing to gain, I got it. 

She said the other options were to get a surveyor to check boundaries, and something else done, costing $1200 from memory, or to buy the title insurance which was… I forgot, $200 maybe, I can't remember. Either way, I went with it as the cheaper option as I figured my boundaries were probably right. Units next door, gotto have imagined they would have built to the right boundary, and as I have a semi, the fence runs along the divide in houses on other side. 

That's my 2 bobs worth, others more knowledgeable would be able to explain it better than, 'it was good, cheap option at the time'. 

[tlm1987Member@tlm1987Join Date: 2013Post Count: 31]

March 15, 2013 - 6:00 am

On the flipside; if you do contact the tenant directly, you'd save on agents fee and can offer to split the difference with them. Eg – Agent fee 10k, so take 5k off sale price and you both 'save' 5k. Or would this grump up the agent?

[tlm1987Member@tlm1987Join Date: 2013Post Count: 31]

March 9, 2013 - 9:41 pm

I do enjoy reading your posts Freckle.

…

…

On the flipside, are you suggesting we invest in a large acreage in the middle of no where in order to set up a farm to cash in on the low food production in 40 years times? 

[tlm1987Member@tlm1987Join Date: 2013Post Count: 31]

March 9, 2013 - 9:33 pm

There is a difference between stating fact and the posting of flaming comments. Keep it professional, even if they didn't, would be my advice.

I had many poor dealings with agents when buying my PPOR. Blatant lies were always a big problem – – – – not to steal your thread, but if anyone is looking in Bathurst I'd recommend 'The Professionals' – Leanne Hurley as an agent. I only met her twice but she was a picture of professionalism, valued communication (via email and phone) and was altogether delightful to deal with.  

[tlm1987Member@tlm1987Join Date: 2013Post Count: 31]

March 2, 2013 - 10:20 pm

Bugaloo; I've only just started in the past two months to investigate the property game, so forgive my explanation.

1. They are saying to have an offset account, it's like a redraw, but just an account attached to your loan.

– If you owe 200k on your loan, you pay interest on 200k

– If you had 50k in 'offset' account, you havn't paid any of your loan back, but only pay interest on 150k

– If you have a redraw facility, you're paying off the loan principal, the comment was, you can't then take this money to use on personal expenses and still have a deductible loan – because your personal expenses don't produce income for you.

– Whereas, the offset account is just money sitting in an account, your principal was never changed, just the amount you paid interest on. 

– As far as I can see, in the interest offset account, you're saving interest of at least 5.9% (variable rate), whereas if you put your money in an account, earning interest, you wouldn't get 5.9% and you'd be paying tax on the interest you make – so it becomes a save interest on loan verses make less interest, but get taxed on it.

Hope my basic understanding has helped it click in your head; 

[tlm1987Member@tlm1987Join Date: 2013Post Count: 31]

February 25, 2013 - 9:15 am

My dad is a carpenter, always self employed – he used to do a lot of work for real estates and that was that. No kick backs his end

[tlm1987Member@tlm1987Join Date: 2013Post Count: 31]

February 23, 2013 - 12:43 pm

I am in agreement; those older homes with cheap looking wooden panels for walls… YUCK!

What's 'Blue Board' – is this a type of gyprock? I remember dad talking about it being only a few mm thick and just going straight over existing walls. In my PPOR I have old walls (late 1800s) which were a pain in the arse to gyprock, then sand bank then they still had flaws, (I call them character bumps). – but yea, do the world a favour and get rid of some of those ugly walls!!

Sounds to me like you're talking bout a picture rail going around the wall. If you're boarding over the top of it, well, wouldn't you have no choice but to take it down? To me, the ugliness of the wooden walls needs to go, no picture rail is redeeming enough to warrant them!!

[tlm1987Member@tlm1987Join Date: 2013Post Count: 31]

February 16, 2013 - 11:28 pm

I am only just starting to get into the investment property game, although I'm still a few months off being able to buy one, I figure it doesn't hurt to start researching early. One of my techniques is to look at the census data for the area. The census data that is of concern for this town is the population is slowly decreasing. 

Since 2004 the population is down 1.7%, (which admittedly is only 150 people, but in a community of only 8800). The population is also a couple of years older than national average. It's possible this 150 people is deaths and no one has arrived to keep the population steady. 

I'd probably avoid it but others will be more informed than me-

[tlm1987Member@tlm1987Join Date: 2013Post Count: 31]

February 16, 2013 - 6:52 am

When I moved away from home to Uni (Wollongong) mum and dad bought one of these homes for me to live in, with site fees being the only costs. Was cheap and convenient and the sand was also about 100 metres away (park was located right on the water, between two flagged beachers). The big draw card was that it was boom gated to get in, and security monitored site each fri-sun night. 

I was there for 5 or 6 years, and when I left mum and dad sold up.

Was a caravan/permanent annex site –> completely gutted inside, and cladded outside. Dad is a builder so no labour costs, about $15k all up. The original buy was also $15k. They sold it for 80k. So they were pretty stoked that with that. Where else can you nearly tripple your money in 5 years?

[tlm1987Member@tlm1987Join Date: 2013Post Count: 31]

February 13, 2013 - 7:34 am

Yes; closed in verandah as others have said.

I like stories from older people who lived in large families. The girls would have one room, the boys would have the sleepout.

[tlm1987Member@tlm1987Join Date: 2013Post Count: 31]

February 10, 2013 - 3:10 am

Possibly depends on area. I live in old area, my PPOR was built in 1860, with later extensions. In my area everyone uses palings and they suit the area. In a new estate or with new 'modern' houses, fair enough, colourbond works better.