[Eddy123Member@eddy123Join Date: 2012Post Count: 24]

October 11, 2013 - 1:55 pm

Catalyst wrote:

That is the main reason people go IO and put excess funds into an offset account. If you then take it out all of the loan is still deductible.

What do you mean by when you take it all out it is still deductible? How?

[Eddy123Member@eddy123Join Date: 2012Post Count: 24]

June 5, 2012 - 3:38 am

Hi KirstyL,

At some stage I was looking at small apartment for investment both e.t.c. "student accom" & hotel investment. But I find when I walk into a bank they usually will not offer a loan if the apartment is less than 50sq & I hope you're not looking at student aprt because the banks are not very favourable towards them, they see this kind of property as a "high risk" property due to the turn over rates of tenant I believe, the only bank that did gave me an offer was from ANZ at that time and they offered a 60% LVR, imagine how much cash/equity you need for a 60% LVR on a 200k property – 80k. And if I have 80k I would rather invest in a property that have good capital growth/cash flow. Not sure if this is still the same trend though, the last time I checked with the bank it was about a year ish ago. Some of the bank I checked with are CBA, ANZ, bankwest, Bank of Melb, St George.

That remind me of this great deal that came up for a studio for 100k, it was under bank mortage and the bank is trying to offload it, similar property was selling for 150k so I know it was a bargain, went to inspect the property and yup it was small, about 30sq, and the first thing the agent told everyone was, yes its cheap but the problem they had was no one could get finance…. Anyway I'm glad I didn't get it because I realised later that it was actually hard to offload the apartment, at least at that area. Mind you it had a  gd +ve cash flow.

I guess it really depends on your goals for both your portfolio. I know most apartment are good with +ve cash flow but most of them doesn't seems to have strong capital growth and is more difficult to sell off later if you bought one at a condense area.

Just my thought here if I have 40k to spend I'll get maybe a unit instead for the above reasons. You don't have to wait till you have 80% LVR to invest, I think as long as you can deal with the on-going servicing of your investment property comfortably then you'll even do with a 90% LVR.

But if guys decided to go ahead I suggest you get a good broker that understand the apartment section to advise you on your finance option as I've mentioned don't think it was easy to get finance for small apartment, but gd broker should know.

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May 24, 2012 - 2:28 am

Hi popelich there have been some discussion about this topic in the forum and i remember someone mentioned in terms of substainbility and location emerald would be a better option. Of course there are other factors to consider when buying in either blackwater or emerald maybe the other forum members can fill you in.

[Eddy123Member@eddy123Join Date: 2012Post Count: 24]

May 6, 2012 - 5:42 am

Hi Ryallsy, I'm in a similar situation so I thought I'll share some knowledge here.

The difference of using equity from your existing PPOR for your IP deposit is that you it will be tax deductible, happy days during tax return. Saying that just to bear in mind usually bank only allow you to pull out equity for your current property valuation less than 80% the loan currently owe, so just a quick example here. if your PPOR current valuation is 500k and you currently owe 355k, you can pull out 45k of equity.

Calculation I.E (500k / 0. – 355k = 45k

If 45k is enough for your next IP deposit then just pull out the equity for it and it'll be tax deductible. If 45k is not enough then you're best looking at paying down some or all your offset saving into your current PPOR loan to get the requied $ for your next IP deposit. By the way don't forget about other fees like stamp duty, solicitor e.t.c..

Regarding your question on either 10% or 20% LMI for an IP I've sent a few replies on the forum regarding this, some of the guys here doesn't really object doing 10% even though you incur LMI, my 2cents though on this was that by putting only 10% instead of 20% for your next IP deposit, you kinda "saved" the other 10% which you could leave it in your current offset account to reduce some interest you need to pay in the current loan and this also allows you to save up a tad faster for yet another IP down the road.

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May 3, 2012 - 11:41 am

Hi Rob, wow 10 years is a long time, I have not gone ahead with the funiture package as I concluded the price was not the best from everyone's opinion.

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May 1, 2012 - 7:47 am

I was too happy telling everyone about this in office and someone said you'll be lucky enough if the banks hold onto their current rates and not increase them despite what rba rates are, lol.

[Eddy123Member@eddy123Join Date: 2012Post Count: 24]

May 1, 2012 - 1:15 am

SMY7484 wrote:

Eddy

Less than 12 months ago, another developer in another estate was offering $12,500 for full furniture package for 2+1+1 villa in Emerald.

Of course the quality and the inclusion might be difference from one to another, but doubt that inflation has pushed the furniture price up to roof within 12 months.

Cheers.

There is about 5k in difference here in comparision to the pricing I have, the only thing I can think of is the quality and any price increase in funitures in the last 12mths, on the benifit of doubt it could still be possible.

In saying that, it's true that it is a lot of money for furniture so I think holding off for now is a good decision forward after all.

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April 30, 2012 - 5:02 am

thanks for the input too verity01, and yup, once the IP is almost ready for rent, I will source out a reputable PM in that area and ask them whether if I should go furnish or unfurnish.

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April 26, 2012 - 2:16 pm

Thanks for the input guys, cheers.

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April 26, 2012 - 12:47 pm

Ok thanks i’ll google some online stamp duty calculator and have a go at them.

[Eddy123Member@eddy123Join Date: 2012Post Count: 24]

April 26, 2012 - 12:04 pm

I see so except for vic all all other states uses full purchase price as the figure to calculate stamp duty on OTP regardless of current valuation?

[Eddy123Member@eddy123Join Date: 2012Post Count: 24]

April 25, 2012 - 8:00 am

Yea give Richard a try they're at Kenmore QLD not far from Brissy CBD, he's helping me with an IP purchase in Qld at the moment and have been a great help with his knowledge and quick responses.

[Eddy123Member@eddy123Join Date: 2012Post Count: 24]

April 23, 2012 - 2:27 pm

Jamie M wrote:

Hi Ozlat – I think I mentioned James from House of Wealth as a good accountant in a previous thread. He's a specialist in IP related stuff and is in Melbourne. Cheers Jamie

Meet James once, seems like a nice guy and he had some IP himself so he knows what he's talking about. Give him a call or drop him an email.

[Eddy123Member@eddy123Join Date: 2012Post Count: 24]

April 12, 2012 - 1:21 pm

thanks another good tip from ya.

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April 12, 2012 - 12:56 pm

ok I think I am going to pass on the funiture package now and think about it when the property is closer to a rentable date and also from what Michael suggested I could possibly be able to get away with furnishing just the required items for the tenants and save myself some money.

thanks for all the invaluable comments guys.

[Eddy123Member@eddy123Join Date: 2012Post Count: 24]

April 12, 2012 - 6:16 am

wow you've done really well for a 4/2/2 with $8k, are you able to get decent enough funitures for this amount? No offends just taking some notes here.

[Eddy123Member@eddy123Join Date: 2012Post Count: 24]

April 12, 2012 - 3:25 am

Checking out with another local agent waiting to see what he says.

Just spoke to a design and funiture package company up in qld and they reckon to get something decent 15k to 20k would be around that mark. The difference is I suppose is that I can have more say in what funiture I want to put it and discuss with the designer but you can't do that with the developer.

[Eddy123Member@eddy123Join Date: 2012Post Count: 24]

April 12, 2012 - 2:47 am

JacM,
Well the 18k includes all funitures in these areas, Lounge, Dining, the 2 Bedrooms, electrical stuff like tv, fridge, outdoor, kitchen & some cleaning tools, can't really comment on the quality but from the photos they looked decent.

Richard,
Just spoke to the agent and apparently the developer might be able to include this as part of the property purchase price so it can be part of the loan humm… confirmation by next week.

Nigel,
Yea spoke to one of them PM seems like fully furnishing is not a bad option but this is quite subjective I suppose. I'm leaning towards the funiture package if the developer manage to make it part of the property price.

[Eddy123Member@eddy123Join Date: 2012Post Count: 24]

April 6, 2012 - 9:18 am

You'll know soon enough at the end of the month

[Eddy123Member@eddy123Join Date: 2012Post Count: 24]

April 2, 2012 - 10:03 am

Agreed, nowadays it getting harder for first home buyers to get their first property, maybe the other states will do something similar too to help the next generation.