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From: Mike .
Refinancing Advice
From: Rae
Date: 3/20/00
Time: 1:21:01 PM
Hi, I'm only new to the Forum, but what I have seen so far is great. My delemma is that I too purchased an overpriced townhouse in Slacks Creek almost 4 years ago. It has a negative cash flow (no 221D inplace). The flight from Sydney to Gold Coast was very nice. Sucker! As a novice, I switched over to P&I once the first year was over. Having no other commitments except for entertainment and cheap living I thought I should try to pay off the place as quickly as possible to gain some equity to purchase my second property.
I have recently purchased a house in Rochedale South (which has a positive cash flow) with a cash deposit (payments in advance on first property). I was going to use the equity in my first property. However, on valuation, it came in approx $25,000 shy of what I still owed on it. I want to build up my IP portfolio as quickly as possible. What I would like to know is:
1. Is it better to refinance the first property back to I/O and save for a deposit (paying tax on interest received) or continue paying P&I and take longer to save the deposit drawing back the payments in advance when I buy my third property?
2: My second property is approx 25 years old. How do I go about compiling information for a depreciation schedule?
Since buying my first property, I have lived in Sydney, Darwin and now Wagga Wagga as I am in the Army. I am almost 29yrs old. Due to moving around so frequently, I find it difficult to find good tax advisors, accountants and knowledgeable people with IP experience.
Any assistance will be greately appreciated. Ta muchly.
Refinancing Advice
From: Rae
Date: 3/20/00
Time: 1:21:01 PM
Hi, I'm only new to the Forum, but what I have seen so far is great. My delemma is that I too purchased an overpriced townhouse in Slacks Creek almost 4 years ago. It has a negative cash flow (no 221D inplace). The flight from Sydney to Gold Coast was very nice. Sucker! As a novice, I switched over to P&I once the first year was over. Having no other commitments except for entertainment and cheap living I thought I should try to pay off the place as quickly as possible to gain some equity to purchase my second property.
I have recently purchased a house in Rochedale South (which has a positive cash flow) with a cash deposit (payments in advance on first property). I was going to use the equity in my first property. However, on valuation, it came in approx $25,000 shy of what I still owed on it. I want to build up my IP portfolio as quickly as possible. What I would like to know is:
1. Is it better to refinance the first property back to I/O and save for a deposit (paying tax on interest received) or continue paying P&I and take longer to save the deposit drawing back the payments in advance when I buy my third property?
2: My second property is approx 25 years old. How do I go about compiling information for a depreciation schedule?
Since buying my first property, I have lived in Sydney, Darwin and now Wagga Wagga as I am in the Army. I am almost 29yrs old. Due to moving around so frequently, I find it difficult to find good tax advisors, accountants and knowledgeable people with IP experience.
Any assistance will be greately appreciated. Ta muchly.
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