All Topics / General Property / Advice to newcomer in IP- what to do

Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of kauskaus
    Member
    @kaus
    Join Date: 2004
    Post Count: 14
    April 22, 2004 - 4:47 am

    Hi

    I have IP bought in Nov 03, for 450K. Loan at the moment is interest only with MISA account 1000% off set. I work for Gov. Yes Salary sacrifice is also a option to use. Now instalment on loan is appox 2300-2400 and rent is 230 pw minus other expenses like agents fee etc. Question i have:
    1. Should I fix some part of loan say for 3 or 5 years?
    2. After paying instalment (loan) i still have spare cash of $1200 , should that be dumped in MISA account or in superanuation -(means go for salary sacrifice).
    3. Current rate of interest at the moment is 6.37% and fixed rate for 3 Yr is 6.95% and 5 yr is 7.20%

    Please give you opinion.

    thanks

    Sati

    Profile photo of JobeeJobee
    Member
    @jobee
    Join Date: 2004
    Post Count: 25
    April 22, 2004 - 4:59 am

    I want to know where I can get that %1000 offset loan you were talking about. I could do with a couple of those myself. Hehehe! Sorry I couldn’t resist. Newbie here myself so I don’t have any words of wisdom for you.

    Jo

    Profile photo of kauskaus
    Member
    @kaus
    Join Date: 2004
    Post Count: 14
    April 22, 2004 - 5:11 am

    Sorry it is typo error, and surely discount should be applied

    Sati

    Profile photo of MonopolyMonopoly
    Member
    @monopoly
    Join Date: 2004
    Post Count: 1,612
    April 22, 2004 - 5:12 am

    Hi Sati,

    Let me get this right….your loan repayment is 2300-2400 per month (yes???) and the rent is what??? What you get? or are you paying off someone else’s mortgage???

    Pls clear this up for me before I can begin to help answer your query.

    JO

    Profile photo of kauskaus
    Member
    @kaus
    Join Date: 2004
    Post Count: 14
    April 22, 2004 - 5:33 am

    Hi
    I borrowed 100% against by paid off property, and rent i am getting is $230 pw , i am not paying off any other’s loan . When i say $450 K , purchase price is $430 + other expenses like legal and stamp duty. In fact it is a old house. So loan as i said is $450K

    thanks
    Sati

    Profile photo of qwertyqwerty
    Participant
    @qwerty
    Join Date: 2004
    Post Count: 117
    April 22, 2004 - 6:25 am

    Sheesh that’s what I call negative geared! I hope she’s got some great capital growth potential kaus……

    Profile photo of MonopolyMonopoly
    Member
    @monopoly
    Join Date: 2004
    Post Count: 1,612
    April 23, 2004 - 12:59 am

    Hi Sati,

    Firstly, let me just say that 230 p/w rent on a property is pretty low (in my opinion anyway!!). I had a similar situation “once upon a time” owning a 750,000 property and getting a ridiculous (but fair for the going rate in the area at the time) 350 p/w. My solution was to sell the property, used the 800,000 (actually got) and purchased 3 other IPs (cheaper areas) @ 250 p/w EACH – okay I have 3 x the expenses, but I also have over double the return as I did with just the one. Growth is important in real estate, but if you are chasing cash flow; your situation may be slowing things down for you.

    If you decide to keep the property, at least research some other means of reducing your interest. That I am not not real cluey on (I recommend talking to bank, building society, accountant whatever….) but for heavens sake….rethink you negative gearing situation!

    Cheers,

    Jo

    Profile photo of MonopolyMonopoly
    Member
    @monopoly
    Join Date: 2004
    Post Count: 1,612
    April 23, 2004 - 1:03 am

    Sorry Sati,

    When I said 230 p/w rent is low – I meant for the value of your property (450,000). 230 is fine on a cheaper property…..

    Please don’t take that statement as an offense, none was intended !!!

    Cheers,

    Jo

Viewing 8 posts - 1 through 8 (of 8 total)

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