Hmm, so if all of the big 4 do this, is it MORE likely that the RBA can do another rate CUT on Melbourne Cup day?

As I had heard, it was only the “bubble in real estate” (Syd and Mel) that was stopping them cutting the Cash Rate more. Now, with the APRA changes, and the corresponding changes at the Lenders’ offices, the RBA can now be happy…[Read more]

Ah, that sounds better !! No dramas after all. So, if selling your buy-n-hold properties, is this to be “as a business” from here on, or are these just clearing the decks to start a business?

Benny

Hi SM,
Let me reply to some of your posted comments :-

Because in Sydney, most of the Real Estate agent who markets the affordable H&L package promotes Park Ridge all the way up everyday,

If they are offering free flights too, RUN A MILE !! This kind of “greenfield estate” at Park Ridge is also the kind of development targetted by marketeers…[Read more]

Hi SM,
Let me reply to some of your posted comments :-

According to my friend who bought it last few weeks ago, it was a profitable deal that is once in a lifetime due to:

Hardly “once in a lifetime” for mine – this area is basically rural land that is being developed to build Brisbane’s next “super city”. Yes, there will be lots of houses…[Read more]

Here is one that actually surprised me – as, on the surface, I figured it could have made a few more $$ per week for myself as a landlord. Why not?

https://www.propertyinvesting.com/topic/4999285-provide-internet-access-to-increase-rent/

Read it end-to-end yourself, and see how “Just Do It” could be a big mistake.

Benny

Now THIS tip actually surprised me (I was expecting the opposite) :-

Think twice before providing an Internet Service to your property !!

See this thread for the whole story- https://www.propertyinvesting.com/topic/4999285-provide-internet-access-to-increase-rent/

Benny

Hi TJ,

– I don’t want the tenant associating the quality of the internet service with their need to pay rent.

Wow, that is GOLD !!! Thank you,

Benny

Hi PPJ,
Again, there will be a host of questions – and I am sure I haven’t thought of them all. At times like this, I would strongly suggest you get some expert advice around taxation.

What I “think” I know is this :-
1. Since you haven’t yet had anyone else renting it, this perhaps could be a PPOR for you – but then, what happens to…[Read more]

Hi PPJ,
I think moving in now might be “shutting the gate after the horse has bolted”. But then, I am not an adviser on Tax matters, so I would rather have someone else check my answer there. There might be some situations in which you CAN buy a house, do it up (i.e. add value) and then nominate it as your PPOR (or perhaps nominate it as of a…[Read more]

Corey got it in one :-

Reports which aren’t based on reality get quite boring. Fact is that most first home buyers do not necessarily NEED to buy a median property for their initial purchase.

When DID it happen that any couple’s first home HAD to be a McMansion with 4bd, 2ba, 2g ? What happened to sitting on orange boxes in a humble little “…[Read more]

Hi Liam,

Does this mean for first time buyers like me, purchasing investments as PPOR and using these new benefits is becoming more relevant. If i bought a place for 200k and moved in for 6 months, renovated, then sold and repeated, i could take advantage of lower interest rates and slashed CGT?

That has been a time-honoured way of bettering…[Read more]

Hi Gaurav,
As others have said, you can do way better. Do a Search for Coomera on here and you will find lots of words that will paint a rather dull picture. Here is one post as an example – scroll up/down to read more :-
https://www.propertyinvesting.com/topic/4405022-coomera-qld-investment-property/#post-4657842

I see Coomera as an areaa…[Read more]

Hi Steve,

first post on here so please go easy on me!

Welcome aboard !! Don’t worry, we don’t bite unless you ask nicely !! :p

I’m looking for 10 year+ hold but early growth for equity would be a bonus.

OK – that is a start, but do put some more detail around what type of property you want. I say this, because some suburbs/towns may suit p…[Read more]

Hi Coalfinger,
You and your nephew will be showing on contract as “jointly and severally liable” (read that as “jointly and separately liable” – it makes more sense that way). So, in a nutshell, you are each separately liable for the WHOLE AMOUNT of the mortgage, and for payments to it.

Be sure this doesn’t screw up any proposed borrowings…[Read more]

Hi Coalfinger,
You and your nephew will be shoing on contract is “jointly and severally liable” (read that as “jointly and separately liable” – it makes more sense that way). So, in a nutshell, you are each separately liable for the WHOLE AMOUNT of the mortgage, and for payments to it.

Be sure this doesn’t screw up any proposed borrowings…[Read more]

Hi MDD,

May I ask why cant we refinancing our original loan to a larger amount?

Oh, you CAN do that, no problem. It is HOW you do it that can be a problem.

Initially we have $400k loan on our PPOR with A bank, we now are going to refinance this loan to $600k with B bank, so we can use the $200k equity for deposit.

Bank A won’t be allowing…[Read more]

Hi Ronnie,

If I were to just have a principle and interest loan and no offset account and had dumped the $100,000 to my repayments nothing would change, my repayments would still be $2000 per month the only thing would change would be the loan term reduced in years, is this correct?

Sounds right to me !! And, if you wanted to get it out again,…[Read more]

Hi Adnie,
Just an overall “common pitfall” (not from any subdivision experience at all) – and that is to ensure you retain sufficient Cashflow, or at least cash to tide you over any rough times. The words “tied up capital-wise” sound a bit like it could be a struggle (??)

To that end, I would suggest erring on the side of caution, depending…[Read more]

Hi MDD,

I guess there is not much choice for us to go with different banks, only limited banks would consider our case.

Good on you for asking, rather than just guessing – a much smarter move !! ;) I think you will find (possibly today, from a Broker or two on here) that there may be less limits than you thought. At the same time though,…[Read more]

Hi Ronnie,
What Corey means is this :-
You have a $480k mortgage on a property. Mortgage is Interest Only, and you have an Offset account against the Loan. Loan repayment is 5%, so $24k per year or $2000 per month in Interest to be paid.

You put your salary into the Offset, live off your Credit card for the month, then square up with cc once…[Read more]