Hi Bec,

Ideally I’d love to learn how to be my own mortgage broker. Is that possible?

I’m sure it would be possible, but that would happen better if you were dealing with someone who has a wide knowledge of Broking in the first place. Terry, Richard, Ethan, Jamie and George have all shown they know the “ins and outs” of broking to a very d…[Read more]

Hi Terry,

borrow against your existing house at the same bank for the deposit and costs. Make sure this is done via a separate loan.

Then borrow 80% secured on the new property, ideally at a separate bank.

Result = 105% loan without cross collateralising securities giving maximum asset protection and deductibility of interest.

That works well…[Read more]

Hi Terry,

borrow against your existing house at the same bank for the deposit and costs. Make sure this is done via a separate loan.

Then borrow 80% secured on the new property, ideally at a separate bank.

Result = 105% loan without cross collateralising securities giving maximum asset protection and deductibility of interest.

That works well…[Read more]

Hi Molly,
With a few of the “numbers”, some thoughts become a little clearer. I am guessing that the first two properties have some mortgages and I’ve assumed 80% LVR. If anywhere near correct, then that tells me that Tannum Sands is the one causing the most bleeding. Your current portfolio up there must be costing you plenty each week.…[Read more]

Hi Molly,
Ouch !! I would be interested to hear thoughts from others too. Meanwhile, can I encourage you to add a bit more info (vague if you like, but as near factual as possible) so that the bigger picture comes into view.

e.g. are you renting 4 properties currently, for what rents, vs what mortgages, and what are estimated values.…[Read more]

Hi Bec,
It may be you have come across this already, but if not, I didn’t want you to miss it, as the post linked below guides you to other threads that get into “What does and doesn’t work with x-coll!”

https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/#post-4697974

Benny

Hi Valluvan,
As Terry has indicated, there are MANY more things to consider before making a call one way or another. As just one more example to think about, I could argue that living in your newly-built PPOR for 2 years, then SELLING it, might turn out to be a far better option than keeping it as an IP. But you would need to confirm that…[Read more]

Hi MM,
Wow. I’ve been out of it awhile, so my “numbers” might be a little out-of-date – but that quote just blew my mind !! My first thought would be to get two more quotes (at least) and have them itemise the expenses – i.e. If they are not providing the DA part, where does all of the expense come from? Are there major earthworks to be done?…[Read more]

Hi Kengw,
Good for you for having a plan. That alone is a very good start.

i’ve made every assumption along the way very conservative

1. I agree it is very conservative.
2. Your PPOR may not be quite as flexible as other IPs, so would its $3m be as accessible for investment as the others? Of course, you might downgrade to something s…[Read more]

Hmm, my lack of knowledge of Units is showing – I only ever did buy houses.

Anyway, Kengw, the other thing that I recall the Body Corp might be doing is imposing a “Special Levy”. That might be another name for Sinking Fund – or it might be they don’t use the term sinking fund at all, but they might instead have a Special Levy that all owners…[Read more]

Hi Kengw,
First points to me would be these:-
1. Many lenders won’t offer finance on “tiny units” – and for those that do, they might only offer 60% as a mortgage. Would you have a spare $80k to cover Dep/Costs?
2. “What are your Body Corp costs for this place?” These could be a large outlay monthly – might include large Sinking Fund payments…[Read more]

Hi Dave,
If the sellers can’t see a good deal when it is presented, I’m wondering if you simply need to pay full price.

However, if you don’t mind “playing games” and are wanting to twist a few arms, you might wish to put a sunset clause into each offer. That clause might simply state that they “Have 72 hours in which to accept (or start…[Read more]

Hi Zehra,

where to find the right suppliers for our timber , tiles , plumbing etc , my partner is not from here so he has no idea also

Tell us all where “here” is, and who knows – maybe one of our members might be able to help. ;)

If you are building in Rockhampton, knowing where to buy stuff in Melbourne wouldn’t be a lot of use to you. Do…[Read more]

Queensland per se is not the problem – the product you were buying was the problem.

Sorry guys, but I am sticking with my original statement (above). It may APPEAR that Qld was the problem, and there are reasons for that. One common “gotcha” is that Qld prices (locally) are way below similar prices in Sydney or Melbourne. Some marketers u…[Read more]

Hi Doug,

Whatever you do, DO NOT buy into Queensland unless you want to throw your money away.

Queensland per se is not the problem – the product you were buying was the problem. Sorry to hear of the outcome – but thanks for sharing your story.

Benny

Hi Terry,

Not correct Benny

A valuation is only needed if an existing main residence becomes income producing.
In this case an investment property is moved into so a valuation can’t be used.
The CGT will be worked out on the portion of the time that the property was a rental.

Of course – I had it the wrong way around !! Thanks for the c…[Read more]

Hi Jon,
Welcome aboard this good place !! I can’t help with spreadsheets, but regarding meeting others to learn, here are a couple of links that let you know what is happening from time to time. You might wish to make contact with the two posters who advertise these meetings as I think they also conduct them.

They pop up every two to…[Read more]

I think Terry is meaning the property will only be exempt from any further value increases from the time you move into it as your PPOR. But you will likely be up for any Capital Gains above original purchase price up until the date you move in. You will likely need to get a valuation as you move in – gains from that value upward would be exempt…[Read more]

Hi Steven,

After talking to a few agents, I was told basically the local council put this phrase on literally every property’s report and it looks like the council put down this as a “blanket to cover themselves as result of earthquakes in Christchurch”.

Hmm, so this is a Council Report then? I had thought it was a Building Inspector’s repor…[Read more]

Hi Steven,
An interesting phrase for sure. On one hand it might be as realistic as having someone reporting of a car for sale “Possibility of an accident if driven on roads”.

On the other hand, if this property was in Chch (or a similar area where that actually HAS happened previously) then it would certainly be worth heeding. Further due…[Read more]