[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 17, 2009 - 10:08 pm

YI,

I'm with NAB Business Banking, have been since March this year.

I'm overall happy with the bank.  They've allowed me to slip in under the family and create a new personal account, and have allowed me to joing NAB Health Business Banking without being in the industry.  Big plus from my point of view, even if it cost's me $400 a year.

I've found that having a personal bank manager and associate is beneficial, it's great being able to just phone someone direct who know's your situation and can offer help/advice.

NAB's been pretty good with the interest rate rises of late, I'm currently paying 5.89% on my first home loan, equalling a happy customer who's not looking to move.

My only negitive comment is in regards to how fast things happen, or don't happen.  I find that the only way to get things done is to continually hound them for it (may just be my bank manager tho).  I know I'm one of the 'small fish' in their books right now but the plan i've put infront of them clearly demonstrates the win-win we'll both encounter.

I'm aware i've got to 'do my time' with them before things get a little easier – after all, I only entered the property market this year.

Hope this helps.

Cheers,

Darren

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 17, 2009 - 2:52 am

Good to know – Thanks Richard

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 16, 2009 - 10:52 pm

Thanks YI,

Yes, I'm on the Choice Package through NAB Health Business Banking…

The Loan has only been in place since the the end of March this year…do you know if this will go against me, or am I covered under the Choice Package if I change from PI& to IO ??

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 15, 2009 - 11:32 am

Thanks 

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 15, 2009 - 11:05 am

Terry – I'm borrowing another $50k from the bank next week (ontop of my current $200k loan):
 
$35k for the remaining sub-division work
$15k to fix up the external of my existing home (Paint, Repairs and Front Verandah).  This will help with street appeal come time to sell back block/house.

I spoke with my Bank Managers Associate today to discussed changing my current P&I over to IO – she stated it shouldnt be a problem…my plan is also to get the additional $50k as IO with a linked offset account (as we've discussed in this post)…

With this in mind I have 2 questions:

1 – Are there any Tax / Deduction implications with having 2 separate IO accounts that I should be aware of ??  (all I can see are the positives…)
2 – What's the banks general position on IO loans, is there something people can do that commonly helps persuade the bank to allow IO loans ?? 

I've convinced the Associate the my current PPOR is an IP (which it is) as I've heard IO Loans are generally only for IP purchases…

Your thoughts ??

Cheers,

Darren

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 14, 2009 - 11:08 pm

Thanks Terry…

I'll check these books out and see what I can find. 

I also found out this morning that the mentors I'm learning from have used Options in the past for some quick cash…I'll hit them up as well for some more info…

As with most things legal, best to do the research first and hit the books !!

Thanks for your comments… 

Cheers,

Darren

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 14, 2009 - 12:22 pm

Thanks Terry – I'm meeting with the Bank this week, will see what they say…

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 14, 2009 - 12:19 pm

True…

I suppose to mitigate this risk, I'd make sure it was an Option that guaranteed I'd buy at the end of the period identified in the contract…

I'd see the need to buy happen if there were delays in the reno, or if the sale doesn't come through as quick as intented (both highly possible given the potentially short timeframes of the option)…

There's a property I looked at over the weekend that fits this bill nicely…Is there any content online that explains Put & Hold options in more detail or is this something that you need to engage a lawyer for ??

Cheers,

Darren

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 14, 2009 - 12:03 pm

I dont know enough about the Tax Benefits/Implications/Deductions associated with Property Investing to fully understand all of the intricacies that go with the information above, however, in theory it does make sense and I can follow where you're going with it – I do need a good Accountant tho !!

Given I'm just starting out, I see cash in the bank as my best asset to re-invest into new PI's – can I instruct my bank (NAB) to change my current P&I home loan over to an IO loan ??  (it's currently the only loan I have with the bank – but I'm soon to be getting another $50k to complete my sub-division).

If I can achieve this, it'll only dump a small amount each week back into my offset, but right now, every little bit helps !!

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 14, 2009 - 10:19 am

Terry – How does this work for PPORs ??

I'm currently paying P&I for my PPOR, would I be better just paying IO to the bank and dumping the principle into an Offset, especially if i'm making my start in investing (will the bank allow me to do this on a PPOR ??)

I can see how the benefits of this mean I'll have more cash available come time to buy another property, but what are the downsides ??

I know I wont be reducing the loan, so my repayments wont get smaller, but if we're only talking about a loan of $200k is it really that bad ??

Cheers,

Darren

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 14, 2009 - 10:06 am

Can you merge the 'Options' deal into a Reno of the place your looking to buy, or does the property have to stay in the same condition while the Option is in place ??

Eg:
Both parties agree to sale price with a Put and Call Option written into the contract, buyer also requests early access to the property to complete some basic reno's.  Reno's get completed before the property gets put back on the market, all done before the Option needs to be actioned.

So if you purchase right, spend wisely on adding more perceived value than actual value, and sell within the Option timeframe, this sounds like a useful way to make quick captical gains…

…what am I missing here, what are the pitfalls of this strategy ??

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 14, 2009 - 9:33 am

I did some research into this a couple of weeks ago, my my focus was selling part or all of the property that was purchased within the 12 month period.  If you do this, you'll have to pay back the First Home Concession you received (the waiver in Stamp Duty).

Check out more info in the post here:

https://www.propertyinvesting.com/forums/property-investing/help-needed/4329989

This research was done in QLD, not sure if it's different in other states.

Cheers,

Darren

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 10, 2009 - 7:19 am

Sorry to hijack your post Marcus…I'm a newbie who's needs some info…

What is a QS report ??

What is Cross Collaterisation and why should it be avoided ??

Cheers,

Darren

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 9, 2009 - 11:07 am

Just remember your clause in the contract – don't feel obligated to purchase unless you're 100% confident with your decision.

At the end of the day it's your decision – the agent will try his/her best to persuade you, that's their job.

And remember, each and every day more properties are listed for sale ("There's plenty of fish in the sea")…

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 9, 2009 - 10:23 am

Hi Z,

I'd also side with the comments made by other forum members.

You mentioned that it's cheaper than anything else in the area that is similar – think about why…

If we just consider PPORs for a moment, nobody want's to buy someone else's problem (this applies whether its a car, business or house)…the exception here is if you're fixing a problem to provide a solution – eg: Reno's…

Additionally, how long has it been on the market, have other potential buyers enquired in detail and backed away due to what was found ??

While it is true that termites can be completely eradicated, and the damage rebuilt, you're still buying a product that has at one time or another had faults and serious concerns…can you live with this ??

At the end of the day, the decision is yours to make – we can only provide our opinion towards your situation, be it positive or negative…I hope it's helped  

All the best with your future purchase, where ever it may be.

Cheers,

Darren

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 7, 2009 - 11:02 am

Good Luck Dave,

I can relate to the place you're in right now – I'm only now just starting to realise the potential in Property Investing (after reading Steve's Book) and feel that I can't move quick enough to capitalise on the opportunities that are out there !!

I know I'm going to struggle getting finance, especially in the early days.  But the best thing i've found to work is have a detailed plan, describing your estimated figures, so that when you walk into the bank requesting some assistance, they're comfortable in knowing that your serious about investing and not just after some quick and easy cash.

I can't see anyone handing me a wad of cash without experience in successful investing.  So i'm planning on starting small, working on what i'm calling 'learning projects' with the overall ambition to go big once i've got some deals under my belt.

I've been on this site for less than a month and have already learnt heaps – but remember there comes a point in time when your knowledge can only fully be realised when put it into action.

All the best.

Cheers,

Darren

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 6, 2009 - 10:51 am

Hi Kas123,

I'm sure there's plenty of people who would be interested, and it may help if you could provide some more information (some specific's):

– Location ?? (10km's of CBD = north, south, east, west…does it matter ??)
– Specific Requirements (Bedrooms/Bathrooms/Car Parks/etc) ??
– If it's a House, what do you want ??
– If it's a Unit, what do you want ??
– What repayments can you comfortably make ??
– What is your credit rating like, is this why you need Vendor Financing ??

At the end of the day you'll be living there, it's going to be your home – so what are you interested in ??

I don't have any experience with Vendor Financing, but i'm certainly interested in future possibilities.

Cheers,

Darren

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 5, 2009 - 11:44 pm

Sorry, forgot to ask – has anyone had experience in sub-dividing a 650sqm or less block ??

What's the smallest block size you've built on ??

Cheers,

Darren

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 5, 2009 - 11:42 pm

Hi Alex,

I'm only new to sub-dividing so there's alot that I still have to learn myself.  Im interesting in knowing what Council allows you to sub-divide a 650sqm block – where are you looking to buy ??

From the research i've been doing, typically the block needs to be around 800sqm before it can be sub-divided, you also need to make sure there's enough recreational space on each block (driveways and carports don't count).  Fitting another house on a 325sqm or less block, while meeting all of the councils other guidelines should be a fun challenge.

Cheers,

Darren

[dnh83Member@dnh83Join Date: 2009Post Count: 81]

December 5, 2009 - 12:28 pm

Update To Post:

Hi All – I finally got the call back I was waiting for and have a little more info to share.

If you purchased using the FHOG and sell all or part of your land within the first 12 months, then you'll have to pay back the First Home Concession that was initially waivered (the Stamp Duty).

This means, if I sell my sub-divided back block before the 12 months is up i'll be stung with $1050 for the first $75,000, plus 3.5% of the remaining purchase price.  While it's not the $14,000 I was initially told, it's still a fee that i'll look to avoid !!

All of the information I have provided in the post is based on my specific circumstance in Queensland, im not sure if there are different rules across the states.

Hope this has helped.

Cheers,

Darren