Forum Replies Created
<<<It’s not a +ve cashflow property but it has huge capital gains potential (bought below market value)>>>
Congratulations – bought below market value – you thinking in 2003 prices or 2005 prices.
What you bought now in fact may be worth less in 2005 hence the vendor accepting your small deposit.
And what you bought now may appear to be under market value if your still thinking in 2003 property prices.
The real market price is what you paid today – not what you thought it was worth last year.
<<<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 Somers.
Geo – Have you read any Peter Spann or Jan Somers Books?
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 $130k. Now they are $350k.
And my income has not really gone up all that much in that time. In fact its the same, as my wife now does not work to look after the kids.
I would hate to be a first home buyer now having to come up with a large deposit or a huge home loan.
So I still reckon we have a bit more to go before house prices are equitable with incomes. When interest rates rise again, you will see further falls in property prices.
Thats my 2 cents.
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 property and have no interest in it.
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 * 5%).
So after 7 yrs you have 120,000 pts.
So that means you paid $3500 in after tax dollars. And you need to earn $5000 to pay for a $2500 air ticket.
I am not sure if I am comparing apples with apples here. I am assuming you have a property investment to claim the interest and you need to earn $5k in before tax dollars for the ticket.
But I seem to think its worth it.
Please check my figures and tell me what you think?
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 pointsYou 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 does not have to travel to get a key to view.
But the big clincher for me is that a renter would go to the agents in the area to find a property to rent. Thats what I would do if I needed to rent.
Then why aint it sold yet???????
