If they minimise or abolish exit fees people will be more able to change banks. People at the moment are reluctant to change when they are unhappy with service, rates etc. Banks know this so don't fear losing customers.This will make for better competition among lenders.Establishment fees are an entry fee not an exit fee. If you delayed paying…[Read more]

Seems you are a bit confused. If you borrow $50K at 10% the interest per year would cost you 5K. If you had $35K in the offset account you would only pay $1500 interest. You don't GET money on the money in the offset account, it just saves you interest you owe. But yes it is better having it there are saving 10% than having it in an account and…[Read more]

I sent you a PM in regards to your other post. Check your inbox (top right corner). Some BA's charge a set fee. Others a %. You will be looking at around $8K

What part of Sydney are you from? I'd recommend attending some meetings with like minded investors.  I think you need to get your head around investing first and decide what direction you want to take. Jumping in and getting a buyers agent before you have any basic info doesn't make sense to me. But then I'm not selling anything.There are a few…[Read more]

Unless there is no other way to get on the property ladder don't cross your loans. If you need to use the equity in your PPOR for the deposit do that. Use the equity (LOC) to pay for the deposit, stamp duty, solicitor etc then get a separate 80% loan for the investment property. This will be a stand alone loan for the IP.As long as you keep the…[Read more]

Well done Goldie. Good price and rent for that area. I don't mind Hebersham (well parts of it). Prices have certainly moved around that area in the last 6 months. Did you need to do any work to it?

Compare the new build with a similarly sized property in the neighboring suburb. Compare prices.This will at least tell you whether the new build is over priced. What will it rent for? What will be the ongoing costs (for both). The numbers will tell you which is better.

You need to look at your figures more closely (or are you working on an 80% loan?).A house at $160K will be cf- with a rent of $200. I count ALL the costs of purchasing. Even if you pay the 20% deposit + the stamp duty + the solicitors fees out of your posket that money could be earning you money elsewhere so it still costs you. Don't forget to…[Read more]

A bit tricky. She can move out of her house and still maintain it as her PPOR but the income would be hers (not yours) so would be taxable. Also If you let her rent yours for free you can't claim tax benefits on interest etc. I'd speak to an accountant (a good one) to discuss if there is a way.

Hi, didn't have time to read all the above post but I did a bit of searching earlier. As Duckster said- I hope you claimed half the electricity, rates etc in the year you added the rent to your income. If not shoot your accountant. When you sell you can add your costs for the entire time you owned the home to your cost base (even after he moves…[Read more]

You need to get more realistic goals. It's OK to aim high but it's useless to pluck a dream out of thin air and wish for it. You have very little deposit, little income but in 5 years you want 2 properties that will return $2500 a month? That means from 2 properties the rent would have to be $583 ON TOP of your interest, rates, insurance etc. Read…[Read more]

Question?  Why are the rents so low?   3.8%. Lucky you have paid down your loans otherwise that's seriously cash flow negative.Why are you waiting to buy another? You only have 50% LVR. Put the rents up and buy again.

Tasmania actually had declining population growth this year (admittedly only in the hundreds) but still a consideration. I like Sydney still. Or Adelaide is looking good (but be quick).

I saw one on the net on the weekend. It sounded cheap (in Sydney) and had a granny flat and a big block. Must admit I was getting rather excited.  It mentioned a power easement so I looked at Nearmap and it has a power tower IN the front yard. Searched RPdata and they've been trying to sell it for years. Didn't bother going to the open home. Oh…[Read more]

Good advice above. I have never seen a bank take a pre auction offer. Pro's- you may get it cheaper. Cons you may pay more. You won't know unless it goes to auction. I have seen people get properties cheaper than their limit.Con- you have shown your hand (if you put in offer and it's not accepted). My experience is that agents just want to gauge…[Read more]

advice not advise

Where are you getting the $14K? Out of your equity? So you put $10K rent in and take $14K interest out? plus other costs? I doubt you can make just one payment a year. The interest would keep getting added on each month so it would be more than $14K in the end and you don't have enough equity in the investment..I don't see the point if your PPOR…[Read more]

Email Scott (website below).  Send him details of your property- age, type of building, whether any renovations have been done (details). He'll tell you whether it is worthwhile.  He doesn't recommend depreciation reports unless you get your money back the first year.http://depreciator.com.au/ 

Email Scott (website below).  Send him details of your property- age, type of building, whether any renovations have been done (details). He'll tell you whether it is worthwhile.  He doesn't recommend depreciation reports unless you get your money back the first year.http://depreciator.com.au/ 

matt_decat wrote:
rFinally, how do YOU go about selecting a property. Is it a case of picking a random area with a certain type of house (ie. brick 4 bedroom home in a random area) and then try suss out which are of the suburb to buy into. Do you pick a random suburb that and then analyse it to see if there is any potential. Do you do an…[Read more]