Real estate

I've been reading nr's posts on that "other forum" and he made a point about not trying to pay off the mortgage on an investment property, for a couple of reasons, but the only one I could really understand was that once that happens, you lose any tax advantage.

What do other members think? Should you plan to pay off an investment property as quickly as possible?

Parasite wrote:I've been reading nr's posts on that "other forum" and he made a point about not trying to pay off the mortgage on an investment property, for a couple of reasons, but the only one I could really understand was that once that happens, you lose any tax advantage.

What do other members think? Should you plan to pay off an investment property as quickly as possible?

NR does everything in such an elongated way structuring it i wouldnt know . My main goal is to get everything paid for ASAP fk the tax dodges the sooner you own it the sooner you have excess funds to spend on yourself

Yeh that makes sense. I want to loose money so I have a tax advantage, which after the tax advantage I still lost money

Or own the properties outright which are then positively geared, not as much tax advantage but you are now making money not loosing it.

Oh shit but I didn't get a tax advantage, only a profit, fucking wake up.
Seems like a no brainer to me.

If you can afford to own them outright I cannot understand why you wouldn't
then borrow and negative gear the new ones, pay them off, more positive flow then borrow buy some more.
On and on it goes....it's like the song that never ends, it goes on and on my friends...

Dogmatic wrote:Yeh that makes sense. I want to loose money so I have a tax advantage, which after the tax advantage I still lost money

Or own the properties outright which are then positively geared, not as much tax advantage but you are now making money not loosing it.

Oh shit but I didn't get a tax advantage, only a profit, fucking wake up.
Seems like a no brainer to me.

If you can afford to own them outright I cannot understand why you wouldn't
then borrow and negative gear the new ones, pay them off, more positive flow then borrow buy some more.
On and on it goes....it's like the song that never ends, it goes on and on my friends...

Yep i cbf taking money off the gov the spare money i have when its paid far outweighs the dribble you get back in tax benefits

I'm sure I replied to your posts guys, but it's not here. if you see a random real estate post in some other thread, you know where it belongs.

I'm thinking that if you are in a position to pay of your investment property or properties then that puts you in a position to retire earlier, escape the working day and retire earlier using your bye

Parasite wrote:I'm thinking that if you are in a position to pay of your investment property or properties then that puts you in a position to retire earlier, escape the working day and retire earlier using your bye

Using your bye ? are you on the turps ?

with a nose like that he just snorts it

I used to borrow the full costs for the property all in, interest only. Everything tax deductible negative geared to the max, but that would not work now with the market going backwards. J C.

No, I think everything as we have known it is changing.
It is very likely that we will see substantial falls in the property
market in the near future.

Parasite wrote:I'm thinking that if you are in a position to pay of your investment property or properties then that puts you in a position to retire earlier, escape the working day and retire earlier using your

rental income to support you. You can then spend time on this forum and silverstackers, fine tuning your corporate SMSF and trust funds maximising your investment potential and minimising the tax you pay.

I think the property market must be very different up this side of the globe to you guys...I've also discussed stuff like this with W&F...it seems like you can buy places down there that are a damned good size for peanuts compared to what property is going for up here.

I have a mortgage on 2 properties, mine and my mother's, but she acts more or less like my tenant and pays me about 3/4 of the monthly mortgage on her place. She receives the money she pays me from housing benefit from the local government towards the cost of living in what is still essentially a rented property (me being her landlady), so it's like we get her place almost for free....and its all above board too...my mother wouldn't dream of diddling even a penny out of the government.

However, in a SHTF situation this would be deemed a rather precarious position to be in if the government suddenly decides it wants to stop paying housing benefit to folk on low incomes. :/

Just to give you folks a guide to what property prices are like where I live (and they are pretty average for the UK as a whole) my place is a flat on 2 floors within a large Victorian stone built property that has been split into flats.

Here's a photo, it's easier than describing it :

I am buying all that half of the house. My flat is on the first and second floor and my mum's place is a separate flat on the ground floor (the black front door is hers). I know it doesn't look like much, and believe me it's no better on the inside either, but my flat was recently valued at about £110,000GBP and my mum's place at about £85,000GBP.

I believe that kind of money would get you much more bang for buck down under...yes?

Very dependent on location. close to Sydney or Melbourne I don't think it would get you anything.

If you moved out bush somewhere it may. I live 3 hours from Sydney and don't think you would
get much for under $350,000 and that would not be very much.

As dog said.

broomstix wrote:



I believe that kind of money would get you much more bang for buck down under...yes?

GBP85000 is abt AUD130000, that won't get you much. It'll get you a one bed unit on the Sunshine Coast in Qld, but you won't be able to live in it, purely overnight and holiday rental and not freehold either probably. You could probably buy a house in some parts of Australia for that, but you won't find a job in the area.

Have a look at this Cheap housing

If you have ever been to any of those towns you will fully appreciate the low house prices.
In actual fact it makes you wonder how they could possibly get that much for a house in some
of those towns