In our case with Westpac, we advise them (via our broker) early June that we want to prepay. They do up loan documentation which in effect fixes the IO loan for one year and we sign and return. We are given a day on which to transfer the funds (we do it via internet banking). This year, the rate was better for a two year fix so we did this.

As…[Read more]

My understanding is that if they are on a lease, you cannot ask for vacant possession. However, if you go ahead and purchase and they fall behind in their rent, you can give them notice.

Going by what you have written, I’d go ahead and buy it. Keep taking the current rent until the leases end (make sure you give them the right amount of notice…[Read more]

I have to disagree regarding the tax refund. I do my tax as soon after June 30 as I can and having prepaid interest for the year (plus rates, land tax and anything else I can prepay) the refund then comes as a lump sum and sits in our housing loan to reduce that interest. We then redraw it to prepay interest the next June and get another tax…[Read more]

I’ve found lately that if I go back to the home page, I don’t have a logout invitation. I have to click on a post and get into the page to have a logout opportunity.

Don’t know if I am alone in this.

Wylie.

We have just bought an IP and a fridge was left in the house. It is in fair to good condition, but we have added to the lease that should it fail, we will not be replacing it.

Fridges, however, are not usually part of an unfurnished house and in your case, say the oven fails, you cannot expect someone to live there without an oven or cooktop. You…[Read more]

Fear of the unknown is exactly what we have. I have spoken to a town planner about our options for this block and his advice was initially to have the blocks surveyed showing house position and services. I plan to get this ball rolling and then we will know what can and cannot be done.

Who should I be seeking advice from? I am happy to pay for…[Read more]

Hi Dr X.

Yes we did get it finished. Luckily my parents looked after the children because we worked very late.

We still have that house and have since added a huge back deck, new kitchen and had the floors polished. Each addition or improvement has made renting it so much easier.

Cheers, Wylie.

Hi Derek,

Far from being an expert, we are faced with a bit of a quandry. We have just bought and renovated a house backing onto another IP. This gives us 72 perches with two street access and two houses which cannot be moved (character).

We have stretched ourselves and this is heavily negatively geared. We have borrowed extra to allow us time…[Read more]

I think the gurus might just be wrong, but in the meantime, someone is paying us good money to live in our houses with the added bonus that they are growing in value, sometimes slowly (and sometimes slipping back a tad, like just recently) but still growing.

I’ve watched at least three property cycles and don’t have any doubts there will be…[Read more]

hb,

I don’t think I was off topic. I don’t know how you work out our $50K would be worth $270K. How do you know we would have chosen “good” shares. I know the news reports say that if you invested $xxx it would be worth $xxx now, but what if you happen to pick a poor performing company, or one that goes bust, or get bad advice.

My risk profile…[Read more]

NTDD -non tax deductible debt.

I’d mention things when you find out about them. For an example, if we had told the tenant they were up for the cost of a replacement clothes line, they may have decided to buy one themselves. As it happened, rather than another hills hoist in the middle of the yard, we chose a fold up type and attached it to the side of the house, which is a much…[Read more]

Definitely go with the creeper. We have an IP and the nighbours insisted on a chain wire fence, although we wanted to pay more and have timber. We put creepers in and soon it will look much better, and much more private for both neighbours.

Try to make sure you choose a creeper that isn’t too aggressive or has to be trimmed.

Wylie.

Troy and Bec asked the forum because they don’t know the answers. They are not asking for anyone’s permission to do what they intend to do but simply wanting to research, research, research. Asking a forum like this for answers is part of that research.

It makes me a bit nervous to ask something in case I get a sarcastic answer, but I know that…[Read more]

I would also be interested in a “neutral” or, better still, “property oriented” adviser.

We last spoke to a financial adviser several years ago. We took great care and chose an adviser who charged by the hour as opposed to fee based. We could only find one in Brisbane (probably many more now, but this is quite a few years ago).

The advisser…[Read more]

Hi Dazzling,

Just can’t work out what a 4 x 2 house is. Is it a four bedroom, two bathroom house? (I thought a 4 x 2 was a block of wood!!)

Thanks, Wylie.

We have been private landlords for over 25 years with very few problems. We have never done any regular inspections. I know this is perhaps unusual but I would hate someone to walk through my house and unless we perceive that there are problems, we never do this. If we think there are problems, we arrange to call in to, say, collect overdue rent,…[Read more]

My husband worked in the mines in Mt Isa for four years. I will be almost passing out with heatstroke in Brisbane and he says “what have you got the air conditioning on for, it’s lovely outside”. Yeah right!!!

I think the sun has had some sort of effect on him – fried his brain. Not only did he work underground, he also played football, just in…[Read more]

On the Today show this morning were three finance experts, all very well known in the media. They talked about the stories floating about that banks are selling up people in trouble.

The point was made that the same percentage of loans were defaulted now as in the boom period and much less than the defaults in the 1980’s. I think the figures were…[Read more]

Do you REALLY NEED a new car?

If you don’t need to sell the unit, don’t sell it, especially if you use the money for a new car. You would be giving up potentially thousands of dollars in capital gain and rent for something that will lose you thousands of dollars over the same period.

If you NEED a new car (I’d chose a second hand car) I’d…[Read more]