Hi Rob,

Thanks for that – I assumed (incorrectly most lenders only did 50% on vacant land) and such will change my comments from ‘I would then consider selling the land unless it had a definite purpose in your investment of life plans and use the proceeds as a basis for other income earning investments’ to hang on and use the asset as security…[Read more]

Hi Agordon,

If ‘subject to finance’ was the only condition you placed on the offer and acceptance and this condition has been satisfied then I belive you are expected to now buy the place.

However I also suggest a discussion with a property savvy solicitor – not conveyancer, if you are now wanting out. They will be able to explain any options…[Read more]

Hi Retiresafe,

In addition to the points raised by Simon and Rob I believe you need to work out what sort of property investor you are.

Largely you will fall into a cashflow or growth investor (or combination thereof) and as such this decision, and your plans along the way, how you intend using property gains (income and/or growth) in the future…[Read more]

Hi Yack,

I would suggest that REIV only (largely?) uses information from REA and as such their figures probably don’t include private sales as their statistics as highlighted in the article come from their 700 members.

All in all it does go to highlight the accuracy of MacFarlane’s comments about the lack of hard and comparable stats in the real…[Read more]

Originally posted by The Mortgage Adviser:

Loan 3: $160,000 LOC secured against the $200,000 land

Hi Rob,

Very curious – are there many lenders doing 80% on vacant land?

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Leesa,

They are very simple to organise – all you need do is ring your banker/broker and ask for your current ‘savings’ account to be converted to an ‘offset account’ and nominate which account you want it linked to.

We have a ‘savings’ account linked to our home loan which has all income (wages and rent) deposited into it. We buy using a…[Read more]

Hi Learay,

When doing ‘rough calculations’ I use 5% of the property cost to calculate your loan and purchasing costs.

A week is fairly typical as a letting fee and insurance varies considerably depending upon the location of the property.

I believe there is an insurance website around that gives indications of likely insurance premiums.…[Read more]

Hi Leesa,

There are a few questions that you may like to consider as in some respects the answers may well determine what you need/want to do next.

At the moment you have a $200K block of land sitting there that isn’t giving you a lot of return. I assume it was used as security in the past for the IPs you have.

Based on the numbers you have…[Read more]

Hi Pinotcat,

As Chan indicates you will need to identify your preferred buying area/s as buyers agents are effectively REA and have an area of expertise and knowledge.

Buyers agents typically work in the larger centres.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi MA,

Yes – do a search on Depreciators posts and you’ll find it there somewhere. Sorry can’t help anymore.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Mortgage Advisor,

Depreciator has an office in Perth.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Gatsby,

You are entitled to amend your last four tax returns and as such I would suggest that it would be worth your while – subject to age and nature of the property.

I would be very surprised if your accountant included a depreciable allowance for buildings which means you could be doing yourself out of 2.5% of construction cost/40 years or…[Read more]

Originally posted by The Mortgage Adviser.:
I am just asking why there isn’t adequate regulation in this fast growing investment area to weed out the shonky operators (which are in every industry)???

Hi Rob,

I would offer that in the main legislators are always playing catch up with any unethical people – while many people do the ‘right thing’…[Read more]

Originally posted by Marisa:

I will be putting an offer on for $45,000 to hell with it. If it is rejected will actually go up and stay for a weekend with family and really have a good look around.
Cheers.

Hi Marisa,

As you know who the vendor is you can now put in the offer you want.

If the REA tells you it was rejected then you can ask the…[Read more]

Hi Rob,

In general terms I would suggest put it against home to reduce non-deductible debt – you could always leverage 80% of it on a line of credit for investment purposes.

Mind you in general terms lenders are not really interested in line of credits less than around $20K – a broker will firm up the figure.

But then again you may need a…[Read more]

Hi agordon,

Like the idea of I/O on the block and then put the money you were otherwise going to use as P/I into making additional repayments on the house – provided you have a redraw facility.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Sairah,

You will need to check what size the unit is as anything under about 50 sqm causes some concern for some lenders. They often also have a reluctance to use any growth as security for other properties.

Being a serviced apartment it will attract a higher depreciation rate for the included furniture as such the cashflow shown to you may…[Read more]

Hi Storm,

Re – Wasting Banks Time.

Have you considered contacting a broker – I am sure (given your situation) they will probably also say no – but approach them from the perspective of what do I have to have to get a loan of $X.

This will give you some hard targets and really hone your goals down to the nth degree. It will make the achivement…[Read more]

Originally posted by Brenda Irwin:

Mind you, the instructions say it is virtually impossible to go bankrupt, but I seem to be able to be able to make it a regular occurrance.[confused2]

And when you stop your propensity to ‘go bankrupt’ you may be able to buy an investment property – or two[biggrin]

Congrats on the API articles and your…[Read more]

Originally posted by calvin@thirty4:

Quote:
This period of time can be extended by up to six years if you move out and do not own another PPOR during this time.

Hi Derek, I don’t understand this concept. Could you elaborate, please.

C@34

Hi Calvin,

When you live in your PPOR any capital gains are tax free for the duration of the period it…[Read more]