Recent content by thegoat

Hi guys, I posted last year on this question and received some advice, however we haven't done anything since then. We're now thinking about moving into a new PPOR again and looking at the same situation as last year (see post http://somersoft.com/forums/showthread.php?t=102776) Basically...

Hi Terry, Thanks for the post. This is the part which I haven?t fully clarified with the person that gave us the initial advice, but this was my initial understanding: As you mentioned, my wife would need to pay me $225,000 as this is half the value of the house. Assuming she borrowed this...

Hi, I just wanted to get the opinion of some people on the forum. I hope I'm posting in the right area. We currently own a townhouse, owe about $240,000, would probably sell for around $450,000. We definitely want to buy a new house early next year, but are also at the stage in our...

Hi guys, Sorry to keep this thread going, have another option I'd like to get some advice on. FIL is willing to sell us house at $180000 which will be enough to pay out his existing mortgage and also pay out his wife. He would be able to pay us $125 a week in rent, possibly up to $150 a...

HI Hiflow, thanks for the reply. Just so I understand this properly.... So we buy the property from him, but the property stays in his name? On his death, the property becomes ours through his will? Does the licensed valuer work out the "life interest" portion? If not, how do we know...

Hi, Thanks for all the advice given by posters so far. Based on some of that advice, we’ve come up with another scenario I wanted to post up. We buy the unit outright and her father in law would be left with around $100,000. He’s willing to ‘loan’ us that money, which we would put onto the...

Thanks Terry, my calculation was basic just to make sure I have the right understanding of how negative gearing would work in this case. Am I right in saying that if we borrowed the full amount, it isn't really viable as compared to borrowing only 60%?

Ok, so this is how my knowledge of negative gearing works (on a very basic level). If we borrow $160k, the interest on the loan will be around $10,800 per year, with rental income of $7,800 ($150 per week) per year, leaving a $3000 shortfall which we can claim as a ‘deduction’. We’ve actually...

My father in law at best can only pay back 60% of what market rent would be on the house, as he’s on a pension. So if market rent is around $250p/w, he will probably only be able to pay back around $150 per week. So if we borrow $160K, our repayments would be around $240 a week, meaning we would...

Thanks for the quick reply Aaron. Why do you say this is better than just borrowing what we need to? Isn't what you're saying worse for us because we'd be liable to pay back the full amount of say $250K, but would only be receiving 64% of market rent Thanks for the quick reply Terry. He has...

HI, We are total newbies to the investment property scene, so please excuse any ignorance in my post below!! :) My wife and I currently own our own property in Springvale South, Victoria. House is worth around $430, owing around $250. My wife’s step-father is currently going through a...