I can pay off my house in 4 years pretty much on poor blokes wage!

[TheSneakiness]

Originally Posted by HULK EF

THE GOOD.
baught a 3 bedder/2/1 Sunnybank Brisbane 04 and resold in 06.

Baught at $202,000 resold at $272,000. capital gains tax of $14,000 and the other $40,000 went on my FAILED Woree units mortgage. -The remaining moey paid out selling fees with enough left over for a small deposit on another Sydney investment property.

Mate, if you had that house in Sunnybank now is worth $400k plus. I had a look at property prices the other week in Sunnybank and on my and my wife's wage we wouldn't be able to afford that.

[HULK EF]

Originally Posted by Rapid_Axe

Mate, if you had that house in Sunnybank now is worth $400k plus. I had a look at property prices the other week in Sunnybank and on my and my wife's wage we wouldn't be able to afford that.

yeah, i ve heard that too! wish in a way i held onto it!
although it did pay pown my Woree mortage + pay for my deposit on my Leumeah property so i was happy.

[2011G6E]

Depends where you are greatly...we bought in Bundaberg back in 2000, for a pretty average price of $70,000 in a good suburb. Now our house is only worth about $180,000 to $200,000...we're putting $175,000 on it just to get rid of it so we can shift it quickly, but even fully renovated houses in that are are only going for $200,000.
Move a couple of hours up the coast to Gladstone and you're lucky to find anything under $350,000 for a hovel.

We'll be buying a place down in Rocky once we shift the Bundy house...you can still get good houses in Rocky for well under $300,000...as long as you check the council flood map first to see if the place you are looking at should really have a boat mooring attached to the roof guttering...

After that it's just a matter of discipline I suppose...pouring money into bricks and mortar and paying off the family home is the most important thing you can do with your pay packet...everything else comes a distant second.

[TheSneakiness]

Originally Posted by HULK EF

yeah, i ve heard that too! wish in a way i held onto it!
although it did pay pown my Woree mortage + pay for my deposit on my Leumeah property so i was happy.

In saying that if you did hold on to it and the circumstances buying your investment in Leumeah was the same today how much more deposit would have you needed?

All about circumstance I think and where you need/want to put your money

[HULK EF]

Originally Posted by 2011G6E

Depends where you are greatly...we bought in Bundaberg back in 2000, for a pretty average price of $70,000 in a good suburb. Now our house is only worth about $180,000 to $200,000...we're putting $175,000 on it just to get rid of it so we can shift it quickly, but even fully renovated houses in that are are only going for $200,000.
Move a couple of hours up the coast to Gladstone and you're lucky to find anything under $350,000 for a hovel.

We'll be buying a place down in Rocky once we shift the Bundy house...you can still get good houses in Rocky for well under $300,000...as long as you check the council flood map first to see if the place you are looking at should really have a boat mooring attached to the roof guttering...

After that it's just a matter of discipline I suppose...pouring money into bricks and mortar and paying off the family home is the most important thing you can do with your pay packet...everything else comes a distant second.

So the $70,000 was house AND land? and only worth $180-$200 thousand? um in 10 years time your place has well and truly over doubled in price! -Isnt that a great thing?

[henry 351]

Hulk EF, you are positively geared, so you will probably have to pay tax on that income above your interest expense. You may also have capital gains tax to allow for when you sell, for the capital growth over the investment period of your ownership. A good accountant should set you straight. You are definitely doing the right thing by having the investment property though.

[HULK EF]

Originally Posted by Rapid_Axe

In saying that if you did hold on to it and the circumstances buying your investment in Leumeah was the same today how much more deposit would have you needed?

All about circumstance I think and where you need/want to put your money

hypotheticalizing.. lol

sunnybank would be wrth way more than what i got for the sale selling it when i did compared to todays value of that area. Although my leumeah property is worth more now too si if i was to buy Leumeah today that would require a larger deposit.
Also it would majorly SUCk if i owed the full =initail loan amount of $188 thousand on a property that was now only valued at $150 thousand after 6.5 years of ownership negativly geared and costing a bomb in repairs and maintanence + the stress of worrying about,
-employment/
-tourism $$$ drop
-macro economy - mass exodus of owners thhus flooding the market with property forsale..
+ my F'd bodycorporate letting debt soar so far all maintance and insurance had to cease...

[HULK EF]

Originally Posted by henry 351

Hulk EF, you are positively geared, so you will probably have to pay tax on that income above your interest expense. You may also have capital gains tax to allow for when you sell, for the capital growth over the investment period of your ownership. A good accountant should set you straight. You are definitely doing the right thing by having the investment property though.

Sorry, how am i positivly geared?

Woree
RENT= $600 PM after managment fee's
MORTGAGE =$1015 PM INT/PI currently a high 7.01% and trying to lower it.

Leumeah
RENT= $1380 PM after Management fee's
Mortage WAS $1850 now reduced to $1411 PM. INT only. at 6.52% on $260,000 owing.

[HULK EF]

I/you will always have to pay capital gains tax for a rental property assuming that i/you have used it as a rental for a certain amount of time. also assuming that you are now selling this property for an amount ABOVE what you paid for it.
Think of it a another grubby way for the goverment to get their hands on your cash tah tyou worked to buy/own.

[TheSneakiness]

Originally Posted by HULK EF

hypotheticalizing.. lol

sunnybank would be wrth way more than what i got for the sale selling it when i did compared to todays value of that area. Although my leumeah property is worth more now too si if i was to buy Leumeah today that would require a larger deposit.
Also it would majorly SUCk if i owed the full =initail loan amount of $188 thousand on a property that was now only valued at $150 thousand after 6.5 years of ownership negativly geared and costing a bomb in repairs and maintanence + the stress of worrying about,
-employment/
-tourism $$$ drop
-macro economy - mass exodus of owners thhus flooding the market with property forsale..
+ my F'd bodycorporate letting debt soar so far all maintance and insurance had to cease...

Hahaha, yes I am good at that.

See my comment re: circumstance. You needed to make the move then.

[JG65TE]

france is a crappy place

[HULK EF]

wathched some news segment a week ago of aussie investors buying up big in america. -3 certain hotspots for decent rent however rock bottom buy in's to the area's. making a fortune positivly geared. -and yes. obviously you would be taxed on "being positivly geared"..

8-10 american houses for the price of one AVERAGE sydney house of mid $500's..

[HULK EF]

Originally Posted by JG65TE

france is a crappy place

Go buy a house in greese.

[Scott]

Originally Posted by HULK EF

Go buy a house in greese.

Some beautiful buys in Greece atm. I drool over RE in the US, Spain, Greece etc very regularly. Is escapism wrong?

[graham_h]

Great thread. Well done to the OP. Still very doable out here (granite belt)

[henry 351]

Hulk EF, was thinking the Leumeah scenario, but missed it by that much! Maybe take some equity from Leumeah and put it off your mortgage. It will reduce the interest you have to pay tax on for your home, and increase the deduction for the investment property. The tax man could help pay off your home.

[HULK EF]

pressuming (wrong i know) Woree was sold for $150,000 thou not taking into account selling fee's. with a purchase price of $188,000 thou back in 06, I will be inline for a decent size "Capital loss" and with that a tax break of some sort.
been mention of a tax return with a "tax back" accrued from the "capital loss and also mention of ANY "Capital loss" is minussed away from any future "Capital gains" so in other words "one cancels out the other" and AGIn the GRUBBY governments hand NEVEr hand back money on "Capital losses only TAKE"S it when there's a "Capital gain" GGGRRR!!!!

[HULK EF]

not sure who's right? - do i get a tax refund at tax time on a capital loss? OR is the Capital loss ONLY taken off a future capital gain apon selling other rentals? Woree is a Queensland suburb im selling in. -while living in Sydney as a landlord.

[2011G6E]

Originally Posted by HULK EF

So the $70,000 was house AND land? and only worth $180-$200 thousand? um in 10 years time your place has well and truly over doubled in price! -Isnt that a great thing?

Well, not when you see how much other places have risen in comparison. Bundy is pretty dead for house prices, and people are really hoping on the big expansions in Gladstone, coupled with lack of anywhere for workers to live there, to make them come down to Bundy to buy and force prices up. Might happen, might not.

[z80]

EDmanual,

you are a winner.

Now have some kids and watch it all evaporate...

[Serial_Fool]

Investing in residential housing and flipping them later on is all well and good, but make sure you're not the one left holding the bag like so many Americans were in 2007/2008.

[HULK EF]

Originally Posted by Serial_Fool

Investing in residential housing and flipping them later on is all well and good, but make sure you're not the one left holding the bag like so many Americans were in 2007/2008.

wasnt the investors rather the the banks throwing loans at people they knew would never be able to be payed back and as soon as that came true, people had to sell up, glut of property sale's = massive price crash. good time to be a buyer/invester now if you pick the right area.

[Serial_Fool]

Originally Posted by HULK EF

wasnt the investors rather the the banks throwing loans at people they knew would never be able to be payed back and as soon as that came true, people had to sell up, glut of property sale's = massive price crash. good time to be a buyer/invester now if you pick the right area.

And that very well might have been the case if it wasn't for Fannie and Freddie leading the industry down that path and government directives to promote home "ownership" among the poor and minorities...

The biggest defender of the loans during the bubble were the bleeding hearts that thought they were charity, and then when it bursts they turn around and blame "greed" and "capitalism". Nothing capitalist about it, no sir.

The only reason why the prices are holding up as well as they are in the US is because the government/federal reserve effectively nationalized the losses incured by the banks. Bank of America for instance just pawned a whole lot of worthless ownership of this stuff over to Freddie for hundreds of BILLIONS of dollars. This isn't to mention the 16 Trillion given out interest free to keep the merry go round...keep going around...in 2008.

Housing prices will stagnate and collapse down to historical levels within this decade.

[Zorba]

have you thought about renting the property rather than selling it.

borrow the money against the investment property and all interest paid on the loan will be tax deductable. Rent on a 330k house would pretty much cover the repayments also.

[buggerlugs]

http://www.news.com.au/money/propert...-1226248472949

[onfire]

Originally Posted by Pat Riley

This happens all the time, so I'm not sure what the purpose of the thread is?

Speak to some people who bought blocks in 2007 and tried to do the same thing. I'm sure they will have a different opinion on things. In a upward market, of course you will make some money, but in a downward market, you will likely lose money.

Agreed.

Also consider the people who bought houses 15-20 years ago for next to nothing compared to today's prices, and how much those exact same houses are worth today.

If the original poster had some magical formula for purchasing a house, and paying it off.. well, that would be a different story.

[gtfpv]

congrats to the op , and anyone else who can tolerate such a stressfull decision and committment/s . well done to you , but as with anything , some win some lose at the end of the day it all balances out . me i'm neither a winner or loser , and i hope i have suffered less worry , however , reading this thread i'm in ore of anyone who has/had the balls to do it . well done !!

[Stefan]

Did the OP manage to sell. The original post said it was on the market but there was no update?

Just saying..

[HULK EF]

Originally Posted by Zorba

have you thought about renting the property rather than selling it.

borrow the money against the investment property and all interest paid on the loan will be tax deductable. Rent on a 330k house would pretty much cover the repayments also.

leumeah = rented out at $365 PW X 4 = $1460PM - agent fee's. =$1380PM My mortgage has been up until now $1860 P and I. $260K owing
Woree = rented out at $220 PW X 4= $880PM - agent fee's = $$795
My mortgage on this is $1015 PM P and I. 7.01% $143 K owing.

share a house/mortgage/bills on the property we now live in in colyton. -all has to come out my pay alone..

ATm i cannot take on another roperty unless i sell one as too much money divide'd up over negativly geared property.

[nuthin' fancy]

Well done, it is not about how much you earn but how much you spend.