feedback please

Viewing 4 posts - 1 through 4 (of 4 total)

fuzzy40
Member
@fuzzy40
Join Date: 2003
Post Count: 0
August 21, 2003 - 12:50 pm
hi guys[]
I have investment plan and need some feedback. Most of the people I talk to are neg gear advocates and cant grasp ptve gear at all.[!]
I live in a unit in sydney.My interest only payments are quite reasonable and if I rent this unit out it should be pos geared if not nuetral geared.I will make the property as appealing as possible with aircon white goods etc to attract good tenents
I can then rent another property for myself.If I calculate the diference in cost between renting and buying the property I can then save the difference and reinvest this amount in more propertry or even in my own property to increase cash flow.
Does this make sense? Any ideas would be greatly appreciated.
Cheers Tim[]
spider_2
Member
@spider_2
Join Date: 2003
Post Count: 79
August 21, 2003 - 1:03 pm
Gidday fuzzy40,
If you rent your unit out and it is either positive or neutral geared, then it sounds like you are on the edge of your interest rate. I would suggest to build a threshold for yourself at this time giving yourself an interest buffer margin. After this look further into reinvesting and expanding your portfolio.
Great to see you out there….
Spider
Focus
Member
@focus
Join Date: 2003
Post Count: 10
August 21, 2003 - 1:21 pm
Hi,
don’t forget to lock in your interest rates. Historic lows.. yada yada yada
If you rented this unit out, other positives:
1. Depreciation (depending on your income & ownership position)
2. Option to sell without attracting capital gains if sold within 6 years (please check details with your accountant)
I agree with spider though, risk management is paramount to building a sustainable empire
Rau
calron
Participant
@calron
Join Date: 2003
Post Count: 78
August 21, 2003 - 1:33 pm
quote:
Hi,
don’t forget to lock in your interest rates. Historic lows.. yada yada yada

Lock your interest rates now???
why??
The rates are going to and fro for a while yet..
When it starts to move up a couple of percent then think about doing it but until then stay liquid.. As soon as you lock your rate in, you can say bye bye to any refinceing that you may want to do.
Equity line of credit on an interest only variable rate is better and more useful than any locked rate.
Use your existing equity to buy elswhere and live in that too if you like..
quote:
If you rented this unit out, other positives:
1. Depreciation (depending on your income & ownership position)

Why is the positivity of depreciation dependant on your income and ownership position??
I thought that depreciation was always a positive thing.
quote:
2. Option to sell without attracting capital gains if sold within 6 years (please check details with your accountant)

Why sell if your trying to build a sustainable empire?
quote:
I agree with spider though, risk management is paramount to building a sustainable empire
Rau

I absolutely agree with this one… Just like sunbathing.
The less exposure, the less likely that you will get burnt.
Calron the Alcamist
Turning things into gold is fun.
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