Hi Propertyboy,I agree with the previous posts. I would add that your concern is about the wrong thing,  a 0.1% or 0.2% isn't going to mean a lot to you at the moment in dollar terms, where there may be potential savings and what can make it easier to get to the 20 properties mentioned by Richard, or whatever else your goal is, is to make sure t…[Read more]

This strategy is definately one that should be considered by anyone who is self employed. However, it must be implemented properly, there have been some recent private tax rulings which have disallowed certain tax minimisation strategies, so it is important to seek proper advice from a competent tax accountant, but for the most part the str…[Read more]

bb8 wrote:
A financial planner recently briefly mentioned that I could convert non-deductible debt of a PPOR to deductible.  I hope I heard this correctly but since then I can't work out how this is possible.Basically my understanding from them was:1. If I own a PPOR the interest on the loan is non deductible.  I will be paying the loan using m…[Read more]

ksun1985 wrote:
Interesting. What would you be expecting to pay for this sort of development. This architect came recommended to me. She has lots of experience with townhouse developments and has been very informative with my questions and design so far.

Not saying she's no good as I don't know her. If she is good she should be charging more as…[Read more]

ksun1985 wrote:
Fees to design 2 x double storey dwellings are $5700. These are fees ONLY for planning permit stage which include planning meetings with Council if required. Additional fees during this stage include planning report ($800), council fees & advertising and landscaping ($600-$700). Just want to see if this is about standard.

That's…[Read more]

Terryw wrote:

APerry wrote:

Aqeel wrote:
I am qualified engineer and has got a new job in mines ($ is twice as what I was earning last year).I do own my first house which I brought in 2009.If I want to buy as many investment properties by myself (quick) and safe. What structure would be best? Bcos from Steve's book I see that 'family trust'…[Read more]

Aqeel wrote:
I am qualified engineer and has got a new job in mines ($ is twice as what I was earning last year).I do own my first house which I brought in 2009.If I want to buy as many investment properties by myself (quick) and safe. What structure would be best? Bcos from Steve's book I see that 'family trust' has…1. Asset protection2. Tax…[Read more]

Given the First Home Owners Grant, and stamp duty exemption in some states, I don't think there is any question that you would be best off buying a PPOR to start with, even if it bacame an IP once you've fulfilled the requirements of the FHOG scheme. Your problem at the moment is your equity position, I would be more concerned with fiing this…[Read more]

Hi Husky, It is the same person. Neil Jenman has something against Nigels former employer as he does against pretty much anyone involved in the real estate industry. You should probably do a google search on Neil and see what people have to say about him. I have known Nigel for some time, and have a number of clients who have used his service. I…[Read more]

Hi Cathy,Using a percentage of income for interest is not going to get you an accurate picture of borrowing capacity. Living expenses are calculated independently of income (using a margin over the Henderson Poverty Line, as Richard stated). Because of this you can use a lot higher % of income if you earn more. I suggest you get yourself a br…[Read more]

husky0108 wrote:
interesting speedy, thanks for the information. do you think its worthwhile holding off for about a year or so before getting into the us property market. sounds to me thats there is no rush to get into it yet.anyone care to comment…

Every State is very different, there are some areas that are going to perform terribly but…[Read more]

Thanks for the kind words Richard. Wendy, the simplest way to explain capitalised interest is that you don't have to make monthly payments, the interest charge is just added to the loan amount. Lenders allow you to do this with commercail construction loans because there is debt clearance at the end of the contruction period through sales. On the…[Read more]

3 units you can do as a commercial development and capitalise interest, so servicing is not such an issue. You can borrow up to 80% of the overall costs, including the land. As you already own the land, if you have sufficient equity to cover your 20% contribution it wouldn't be all that difficult to finance.

Te wrote:
Thanks for the replies.When we bought our private residence, a while back now, we used Mortgage Choice, I felt we were steered towards the bank that would give them the best commission, that might not be the case, but as I said before I'm a cynic. I'll look into some other brokers, ironically I recall brokers came about so we didnt…[Read more]

propertyboy wrote:
Ok so essentially the offset account acts as a reduction to the principle amount. So in effect if that happens there is no difference between a P&I and I loan should you do same monthly principle reductions every month. I don’t get the purpose of the offset account then. Why can’t they just reduce the principle loan amou…[Read more]

No, unless you get them for a ridiculously low price. For most investors they just tie up equity and stop them from doing other, more profitable things. 

daniellee wrote:

APerry wrote:
Whether or not you use a trust to buy shouldn't have an affect on your servicing.

Hi APerry,When we went to the bank, they calculated our borrowing ability and said that as we already had a PPOR and guaranteed the trust loan, we were at our limit and so no more money was available. This was because as Directors…[Read more]

Whether or not you use a trust to buy shouldn't have an affect on your servicing. However, If you are sitting on a $100K capital gain, sell the IP and pay down the loan on the PPOR or use it as a further cash contribution for the new PPOR once the current one is sold. You can always draw back equity for deposits to buy again. There are a number of…[Read more]

v8ghia wrote:
Hi magic32I am a big believer in relationship banking – ie, if you have accounts etc or a history with a lender, and are reasonably happy why go elsewhere to theoretically save time or money. Got a complex deal, time restrictions, your local branch of your favorite bank has a snotty nosed acne covered still living at home 'kid' as…[Read more]

Here's a little bit of Gossip from those interested in the market up there. There is a rumour that an additional coal port has been slated by the Qld State Government for the northern side of the current Port. Bundaberg hasn't currently benefited from the coal boom, if this rumour is true it may start to see some similer benefits.