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Need some financial advice

Discussion in 'Property Finance' started by Xie, 6th Aug, 2015.

  1. Xie

    Xie Well-Known Member

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    Hi Forum, here is my question. My loan settles on the 10th of this month and I have calculated that with holding costs I will be negatively geared by about $170 per fortnight. Should I pay $5K on my loan in the first month, before loan interest kicks in, (my loan has this flexibility) to avoid this ongoing payment each fortnight or should I keep the cash for my offset and then use it later for another purchase? At the moment I am able to save $1K per fortnight as I only pay minimal rent but this situation is only temporary. The $170 is not such a hardship and I will get a pay rise soon but I assume for my next purchase it would look better to the bank. Would love some advice.
     
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Without knowing the full details of your situation I'd generally make the minimum required interest repayments and pump all surplus cash into your offset.

    When it comes to borrowing again - you could use those funds to cover the deposit/costs. However - depending on the current set-up and nature of the next purchase, it might not simply be a matter of withdrawing cash from the offset to cover the deposit/costs.

    Cheers

    Jamie
     
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  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    This is not 'financial advice' but credit advice.

    Keep the money in the offset. If you pay the loan down your repayments will remain the same and it won't assist. You will also lost tax benefits.
     
  4. Hodor

    Hodor Well-Known Member

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    definitely offset, has the same impact as paying the debt down. You have the additional benefit of keeping it tax deductible.
    5k will have minimal effect on reducing the $170pf - That is interest on around $100k, depending on your rate
     
  5. Xie

    Xie Well-Known Member

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    Thanks for the replies I understand that 'cash is king' but still a newbie and your advise is much appreciated.
     
  6. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Hi xie,

    If your a property investor newbie, go and buy some property investment books and start learning the basics. Getting bits and pieces of tips from a forum is good, but there needs to be a solid base somewhere.

    Honestly its as simple as that mate.
     
  7. Dan Donoghue

    Dan Donoghue Well-Known Member

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    Leo, is there a particular book/s you would recommend? Be even better if it was on Google Play Books :)
     
  8. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Hi Dan,

    I don't know what its practical or not practical for some - personally I have I think just about every book by Australian authors (not saying to do that though.)

    I think its been recommended quite a few times by many people already. I would read Yardney, Lomaz, Somers. and a few others. Just my opinion. I know some people who think reading books is a waste of time. Each to their own. All I can say and ive say many times, the most successful investors I personally know have an amazing knowledge base.
     
  9. Dan Donoghue

    Dan Donoghue Well-Known Member

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    Michael Yarndey? The only one that returned on Google Play was an App by Michael Yardney called Property Update. I remotely installed it but won't know anything about it until I get home to my table :). None of the other authors returned anything, looks like I might need to go old school on this and get a hard copy :).
     
  10. willair

    willair Well-Known Member Premium Member

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    Xie, next time you walk past a Lifeline X St Vincent de Paul Society or any shop that sells second - hand books,walk down the back of the shop and see what investment books they have,you will find some gems hard copies within those shops and mostly under five bucks and read every one..
     
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  11. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Yeah Dan I was referring to Hardcopy mate.
     
  12. Leo2413

    Leo2413 Well-Known Member Premium Member

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    hehe probably all cleaned out by me.:DI used to routinely go to those shops and take everything (the books) they got, even got a discount!
     
  13. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    No need to buy books - just read the forum posts.
     
  14. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Its like saying, no need to read any lecture notes whatsoever before you sit the exam , just ask your friends for their feedback and go with it. With all due respect, it makes no sense to me. Well just agree to disagree. I respect your opinion.
     
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  15. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    No one reads books nowadays especially the younger generation.
    They find it i guess boring and most cant sit still before their on Facebook or other Forums.
    Far better to learn of this Forum and maybe write posts of excerpts of the books.
     
  16. Leo2413

    Leo2413 Well-Known Member Premium Member

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    And that's why many people are mediocre.

    Seriously, I cant believe some of the advice/things I read here sometimes, its flabbergasting.
     
  17. Samten

    Samten Well-Known Member

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    Agree with @Leo2413 go and grab books and read them. Whilst this forum is a gold mine for information and advice, there are moments when you are reading a book that you have an "Ah ha moment". Also when reading you can use a highlighter if it is your book to highlight passages that are important to you and your strategy. Use both to learn, this forum and books knowledge is never wasted. Good luck
     
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  18. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Your not my long lost twin are you...:D
     
  19. Samten

    Samten Well-Known Member

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    Ha Ha.....maybe in a former life!
     
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  20. willair

    willair Well-Known Member Premium Member

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    That's one simple item with books,and the ones people own you have a visible objective right there in front of you ,84 years ago countries burnt books like a disease under dictatorships with no justification
    only someone else's control narrative..
     
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