Sc.net financial lounge

Discussion in 'General Chat' started by Archaeopteryx, Apr 14, 2015.

  1. I'll be buying house number 3 soon...
    Looking for something to move into, but not right away. If I rent it out first, and do some work on it before and after tennants are in there (a few weeks either side of them moving in and out), I can get a lot more tax benefits from it. I'll probably move into it after about a year, and have a new kitchen/bathrooms/paint/carpet.

    I'll have about AU$1.3 million worth of property to my name then, although only actually own about AU$230,000 of that, lol
     
  2. Isn't the cash value really low compared to how much you pay in?
     
  3. Good stuff, a fair bit of property at your age. But aren't you worried about having such low equity? Do you have to pay mortgage insurance on some of those loans?
     
  4. First home buyers grant more than covered my mortgage insurance on my first home, had to pay it for the second (about $5000 if I remember correctly), and I will have a 20% deposit for the next home, meaning I will not have to pay it.

    Also, depending on how high my income is, actually paying it on an investment isnt so much of a loss, as its another tax deduction anyway.

    At the moment, the rental income more than covers the mortgage for my investment property, but I actually pay both mortgages out of my work money, and the rental income goes straight into a savings account.
    So currently, I know I can afford to pay at least 2 houses off, just from the money I make from work.

    I would have to strike pretty bad luck if by the time I have the 3rd house, that my 2 investment properties would be vacant at the same time, for any extended period.

    Also, I'm looking for houses that I can cheaply add an extra bathroom to. Much added value/equity straight up.


    Edit: Short answer, no. Rental income will be paying 2/3rds of my combined over-$1 million loan.
     
  5. Sounds like you have it sorted, having positively geared property, especially with such a small deposit is near impossible in Australia (In Melbourne or Sydney anyway). Im planning on using my equity in my new house to buy an investment property when I have done this one up. It needs restumping, new bathroom and kitchen, floorboards, painting the entire house inside and out, HVAC system installed, and finally a new hallway built (the kitchen exits into a kind of alley, with the wall to the neighbours house, 1.5 metres away. Its going to cost me a fair bit, but I should add at least $300k to the value, and essentially increase my equity significantly. Then I buy an investment house, rent it out for a year, do it up and flip it to avoid capital gains tax.
     
  6. I kinda don't want to spend my savings on a house. That's too grown up for me.
     
  7. Too many factors to make such a general statement.
     
  8. I make software for insurance agents and this is what I bought both my kids.

    of course I also do RESP's among other things.

    Keep in mind the cash in this plan is tax free, so when you think about your income bracket (I get taxed 46%) I would basically have to make double this cash in the market to net the same kind of return.
     

    Attached Files:

  9. there is also the fact that the dividend buys more insurance so they don't need to buy term insurance when they start out. Or have to apply with a med (would not usually be a big deal for someone young but you never know) locking in your insurability is very valuable
     

    Attached Files:

  10. restrictions are

    m1 lasts 60 days I think , no alcohol and no night riding , also no 400 serries highway

    m2 lasts longer years , same conditions

    M no restrictions but the regular BAC (blood alcohol content)

    as I recall some details are hazy as its been a while , the Course is the best way to go
     
  11. BTW if any of you Canadians want insurance advice I am happy to do it.
     
  12. Not too hard in any outer-suburban part of any major Australian city really. Inner Canberra homes are up in the millions aswell, although they are newer and pretty large in comparison to inner Sydney and Melbourne homes. I dont know heaps about inner city prices, but new bathrooms and kitchens are always a win.

    Original plan was to acquire a new property every 1 or 2 years, but I think I might sit on the 3 of them for 4 or 5 years to see what happens to the market.

    Canberras market has been flat for a good 4 or 5 years now. Not much point in investment properties if they dont grow in value on their own accord.
     
  13. i just did my taxes. i got back a whopping 268 euro's.
     
  14. christopher is single
     
  15. Well I am spending some savings on Auto-related stuff <A BORDER="0" HREF="http://www.supercars.net/PitLane?displayFAQ=y"><IMG BORDER="0" SRC="pitlane/emoticons/smile.gif"></A>
     
  16. Well I am spending some savings on Auto-related stuff <A BORDER="0" HREF="http://www.supercars.net/PitLane?displayFAQ=y"><IMG BORDER="0" SRC="pitlane/emoticons/smile.gif"></A>
     
  17. what kind stuff?
    im probably gonna sell my mini in july or early next year
     
  18. I play the markets with my TFSA. Invest against peoples fear. Its very easy to play bounces. My best ROI was Facebook shares back when people were crying how the IPO was bad. I made 92% ROI. Only about $5000, but its tax free and gave me the ability to re-invest.

    I think my next play will be oilfield service companies, pending this summer and what the Saudis do. I'd bet they are really trying to shut all progress down in North America. I want to buy in when people start defaulting on mortgages.
     
  19. They're just so reliable. I mean, I have two of them now, one is a 1978, and the other is a 1972, and they both run like they're brand new. They don't leak, they always start, the brakes last two lifetimes... these things are bullet proof. Not to mention they look great. And they're cheap to insure, and cost nothing to buy!

    The '72 is a bit more challenging because of its steam-driven ignition system, but the '78 is pretty much flawless.
     
  20. Honda
     

    Attached Files:

  21. "...as there lurks the skid demon".

    That gave me a hearty chuckle.
     
  22. "Tootel the horn trumpet" is the best
     
  23. Well re-spraying the family wagon, bought new rims and shocks for it last year, headers and exhaust as well...

    Next is a V8 transplant.

    Bought two go karts as well, but technically they're for my kids..
     
  24. Did you get the '78 in decent condition? or have you had to do a bit of maintenance yourself?
     
  25. It's in great shape. What I like is that it is unadulterated, no micky mouse modifications or hilljack repairs. I'm painting the tank and changing the handlbars to a cafe bar, but other than that it didn't need a thing.
     

Share This Page