<<<my country property had doubled in values in 18 months and if i were to sell now that wld be better performing than most city properties>>>

Yeah but that does not mean it will double again in 18 months. It also means it has a lot more space to fall over the next 18 months as interest rates start to tend upwards.

I dont believe doing this involves FBT.

FBT is bourne by an employer. There is no employer here. I have an investment property with a fequent flyer points attached home loan.

I would sell a few properties to pay off the PPOR or reduce it to a comfortable level especially with kids on the horizon.

Then i would buy an investment property to replace what you have. That way you have tax deductible debt that can be offset against your income.

Keep doing what your doing.

Quality property always outperforms rural/regional ve+ property. Thats why it costs you extra.

Go read the books by Jan Somers and Peter Spann. They have been around longer than Steve McKnight.

Then make up your own mind. Dont change things just because you have read Steves latest books without reading Spann and…[Read more]

I am no economist – but think i know enough to be dangerous.

I believe in markets and how they do over time find their natural level.

We are at historical low interest rates. Incomes have not gone up much. So to get back into a natural balance where incomes can support property prices in relation to the interest rate – property prices must fall.

<<<Ansett frequent flyer linked mortgage>>>

Ok. That was unfortunate. Alot of my colleagues lost their points too.

But now with Qantas frequent flyer and the ANZ do you think its worth it?

Sorry – the title of this thread is frequent flyer MORTGAGES not credit cards.

There is a frequent flyer credit card thread in the Opinionated folder.

<<<five units currently on market for $430,000, all currently leased at $120 per week – 7.2% gross yield. >>>>

Dont forget thats not a great yield with interest rates at 7.07% What if rates rise another 1-2% over the next 2-3 yrs. That yield suggests to me there may be some room to negiotiate the price down further.

<<<surfing the net – you can get a brand new 3 bedroom 2 bathroom house at point cook for 340k>>>

I dont know about you guys, but for first home buyers thats still a bloody lot of money.

I remember when I started out back in 1995, a $85k 2 bed unit on beach rd in Parkdale was alot of money for a newly married couple. Houses in Aspendale were…[Read more]

Unless you live with Mum and Dad – I would have kept the house.

Good luck. I am a control freak. I prefer to have control over my money and properties. Even if it means for going so called high yielding opportunities.

Tread warily those on the central coast of NSW.

If they have been selling to take some of their profits then may not be a good time to be buying them.

I also dont believe new investors should be buying so far from home. Its a recipe for failure. I hope the people here on this forum can help you. I am sure they are the one who initially spoke about its merits.

I know nothin about NZ…[Read more]

The inside of one of my properties is Besser Brick. During summer its great and a bit cold during winter.

Its painted on the inside and looks ok. The big positive – tenants can do no damage like punch in walls.

Hope to God you did not buy one that McKnight or Westan have sold.

I have not really worked it out.

On $200k loan – you pay an extra $500 a year.

ie. $200k * .05% = $1000 and then after tax = $500
(assuming its a property invest loan and your on highest marginal tax rate.

To fly around the world you need 120,000 qantas frequent flyer pts.

You get 50,000 in first year then 10,000 a year. (loan balance $200k *…[Read more]

I rang the ANZ.

They told me the following;

eg. $200k loan.

1. On drawing down the funds you get 25% of laon eg. 50,000 points.
2. For every 12 months you get 5% of outstanding balance eg. 10,000 points

You pay variable rate (no discount) and full establishment fees.

It may not be in the fine print – but how certain are you that you could find a tenant quickly.

What you save in stamp duty you may loose in lost rent and interest payments.

<<<<Also what about a rental manager like Metrapole that looks after more than one area. I thought their may be an advantage having one agent look after all or most of your properties.>>>>

I prefer to have my property manager in the area of the property. They know the area, have trades in the area to fix problems and the tenant/property manager…[Read more]

Then why aint it sold yet???????

Oh well, you can clean up the mess and make good profits over the long term when those out of towners realise how poor the capital growth is compared to city properties and are sick of managing properties out in the sticks.