Why such insane management fees Alex? Over 25% on the IP!
Can you work around these? Get rid of those fees and it would seem all your problems would be solved.
yep thats perth for you!
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Why such insane management fees Alex? Over 25% on the IP!
Can you work around these? Get rid of those fees and it would seem all your problems would be solved.
yep thats perth for you!
Its even a bit high for Perth Alex. shop around.
I reckon bite the bullet move home and in 12 months time you will be way ahead. And 2 mortages getting paid. Take advantage and continue to chip in a bit extra when you can
Now have you really lost 26 kgs
wow what an effort well done. Your mates must be in awe. Prolly cost you a fortune in new clothes this last year.
good luck
cheers
I have thought of another option:
See if mum and dad can help me out to see me through the next 6 months and help pay half of my shortfall for my ip. This would be a loan to me. Then when the rental income increases to $240 per week I'll find it a little easier plus I'll have a little money saved! I would also be able to handle expenses that pop up. What do you think??
It would save me the hassle and stress of moving out for just the 1 year and then having to move back in! When the property becomes more neutral I could start paying back the loan. I'll see what mum and dad think!
or
Option 2
Perhaps the $2000 loan mum says she can give me and my $3000 tax return that I'll be getting will be enough to see me through the next couple of years. (if i'm careful and keep being frugal) I worry what will happen though if IR happen to rise or i have a major expense such as having to replace the HWS and other expenses.
To elaborate a little, (sorry, I'm busy at work) Around 85% of my wage goes toward investments, half of it straight toward a mortgage, and around a little over a 3rd or so towards investment properties. I have $100 left after this before tax.
I factor neg- gearing as part of my pay (extra $200p/w) and prefer it in a lump sum each year, and also have a LOE cash buffer that keeps me feeling quite well off.
My portfolio has been making around 3-4x my wage in growh each year and I'm a bit more 'eager' than most people when it come to my aggressive mindset because I am fully aware that size matters, big time and 'time' is the other factor. So size, and the shortest timespan possible= magnified gains/losses. I have gains on a much larger scale than any losses or stagnant growth, for what it's worth. .
Ifr I chose to play it safe, I would not have been making anywhere near as much profit as I have/am.
I don't see this as risky at all because I have a cash buffer, and I have plenty of time on my side to ride out any bumps along the way.
Sorry to side track:80%, that's nothing.....
We're putting about 97% of our income/profits towards IP's.
But no stress encountered so far.
Maybe mum and dad don't want her to move back in?
It is very stressful for parents to have adult children living back at home.
Yes they love them...but they may also enjoy their own space now.
We all know that most children who move back home to save money, usually end up buying other things, that really aren't necessary.
IMO moving back home, and having the parents bail her out are a bad move.
APK can't stand on her own 2 feet..the question is, does she want to.
yes sanj, its a complete cultural and/or value thing,it must be a cultural thing cos i find this so incredibly hard to understand.
Sorry to side track:
I don't understand how one can do this...
Do you both mean that you put all of your wages into a LOC and then pay for essentials out of that? What could I read up on to get a better grasp?
Have you considered spreading that $3k tax return over the year via a PAYG variation? It will help with cashflow - but August won't be as exciting.
Cheers
Jamie
I see this constantly bailing APK out, will only prolong things.
I see this all the time, where family members help...but it really doesn't.
It's no different than consolidating credit card debt into your mortgage, to reduce payment. It is true, that it does reduce interest charged, and the monthly payments are lower. Unless the person learns their lesson, they will continue to rack up the credit catrds again..and the cycle continues.
PPoR and IP seem very similar from previous posts so there wouldn't be much tipping the balance selling one or the other. Other than CGT.Hi, I still reckon flogging the ppor to the market and living in the IP is the go.
Is the cleaner gone now?