[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

December 4, 2013 - 3:50 pm

Hard to coment with out seeing the before and potential after but my money would be on the kitchen and bathroom especially if the wall is sound as is. 

Colin Rice | CDR Finance
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[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

December 4, 2013 - 3:47 pm

Have a client ATM who has a loan with them and seems happy enough.

Suspect this will change in the future when restructuring will no doubt take place as the property prot folio grows. 

The online discount lenderes are a fast growing beast and suitable for a set and forget type loan with no intentions of aquiring more property imho. 

Colin Rice | CDR Finance
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December 4, 2013 - 3:42 pm

Catalyst wrote:

If there is ANY chance that you will make this an investment property in the future STOP making extra payments.

Get a loan with an offset (NOT a redraw) and put extra money into that.Can save MANY thousands of dollars later on.

Do it anyway as no harm done if you never convert to an IP and much if you do!

Just looked at the statemant and looks like it is already an IP as rent payments are recorded? 

Colin Rice | CDR Finance
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December 3, 2013 - 3:57 pm

In WA we have Keystart loans that are a government funding source that provide 2% deposit loans with no LMI.

They also have a shared equity scheme where the government will purchase up to 40% of the property value which you can buy out later.

Income restrictions apply but sounds like you would qualify. Not sure if there are similar options available in NSW and other parts of Australia but worth investigating. 

Colin Rice | CDR Finance
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November 30, 2013 - 2:47 pm

Not sure what the rules are in your state (Im in WA) but you would be able to strata into three seperate titles and each would be treated as a seperate property.

You could sell either of the three titled blocks as land only, land with building approval and plans or as a house and land package on completion.

The banks would view each property as a seperate property and would be worth more therfore could borrow more overall. 

Finance would be available but would be advisable to run the future plans with potential lenders given they are dual occupancy with a party wall before expending time and $$$ on building plans and subdivision. 

Colin Rice | CDR Finance
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November 30, 2013 - 6:55 am

Matt_Arnold wrote:

From experience (I did do a brief stint as a RE salesman) most agents don't really focus on buyers, they tend to spend the majority of their time chasing new listings and are happy to wait for a buyer to come through an open home etc…  this approach always baffled me as you need both a vender and a buyer to collect your commission check.

G'day Matt_Arnold

Buyers will eventually become sellers. If I was an REA I would be thinking long term and build relationships with both parties.

Colin Rice | CDR Finance
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November 30, 2013 - 6:35 am

Can the land be split into 6 strata blocks?

If so could look at doing a strata/build rather than a build/strata since you have the cash to do this without extra finance required. 

Colin Rice | CDR Finance
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November 30, 2013 - 6:16 am

They will still use 80% of the rental income or 8% gross yield, whatever comes first.

500k property that you claim recieves 50K/annum rent (10% yield) will then be assesed at 8% or 40k/annum regardles of what the actual rent is.

Cheers. 

Colin Rice | CDR Finance
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November 29, 2013 - 5:13 am

Any reason why you dont move the 60k from the IP offset to join the 200k in the PPOR offset therefore minimising interest payments that are non deductable and maximising deductable debt on the IP? I dont think paying down your IP debt with the 60k in the offset is a good move based on the informtion disclosed thus far. 

As Terryw stated best to get advice from an acountant/tax agent or lawyer before proceeding on advice from a broker to avoid a world of pain down the track. 

Colin Rice | CDR Finance
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November 28, 2013 - 4:11 pm

If you accesed the 100k equity your loan would increase to 300k and your offset account would have 160k in it so interest would be calculated on the difference being 140k making no difference

To answer your concern accuratley it would be best if you could shed some light on the intended purpose of the 100k available equity in the IP.

Also would be helpful to know if you have a PPOR with any debt on it? 

Colin Rice | CDR Finance
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November 28, 2013 - 3:45 pm

The Dark Knight wrote:

Offset could be my partner <3 i do the same as Jamie all rent/salary goes in and just use a credit card and repay before the interest kicks in

Clean, simple and effective and fingers and toes crossed the banks dont meddle with offsets down the track. 

 

Colin Rice | CDR Finance
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November 28, 2013 - 3:38 pm

Hey gbang007, welcome to the "other side". 

Colin Rice | CDR Finance
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November 28, 2013 - 3:34 pm

Thier are restirctions in place in regards to modifications to properties purchased with SMSFs.

Best to seek expert advice on anything outside of repairs and maintmenace to an SMSF property utilising an LRBA.

Colin Rice | CDR Finance
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November 26, 2013 - 4:06 pm

Jamie M wrote:

Paterson00 wrote:

Catalyst wrote:

wilko1 wrote:

This article I wrote for Australian Property Investor magazine should explain in.

Cheers

Jamie

This is gold advice and unkown to many. Take heed and prosper. 

Colin Rice | CDR Finance
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November 26, 2013 - 3:49 pm

Mark Coburn wrote:

Good service far out weighs the location.  Over the life of the relationship you will visit them once or twice, but mail them a 100 times. 

To true and well said. I have clients in neighboring suburbs and we rarely meet face to face unless its an invite to a social gathering

Skype is a great tool for overcoming the reluctance to use someone you have never seen in the flesh as well. 

Each to their own but both methods can work equally well. 

Colin Rice | CDR Finance
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[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

November 26, 2013 - 3:37 pm

A broker experienced in both SMSF and commercial lending. 

Colin Rice | CDR Finance
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[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

November 26, 2013 - 3:35 pm

Leave it where it is.

Its tax free and a flexible option as your circumstances change.

For example if you purchase a PPOR you could repeat the strategy and park in the offset connected to the PPOR. 

Colin Rice | CDR Finance
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November 20, 2013 - 2:24 pm

Condolences Richard.

Go the BA route over a property marketing company, especially one who pushes Gladstone.

Thier sole motive will be the 15 – 20k comm!

Colin Rice | CDR Finance
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November 20, 2013 - 2:06 pm

Same is happening in WA.

A number of clients and friends in high paying professional positions have either been made redundant or have concerns its looming.

Colin Rice | CDR Finance
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November 19, 2013 - 2:54 pm

First year as an MB broke even, second year made a small profit, third year cracked almost a 100k and fourth year in will surpass 100k and may be able to start borrowing OPM again if the missus stops getting pregnant. 

Not an easy road by any means but I reckon I will be earning 200k+ in the near future (barring another GFC type event) with a trail income building up each year. I need to get a personal assistant to take  it to the next level which will mean a pay cut but would likely be able to double my turnover. The average broker earns 70k/annum. 

Not for the feint hearted and a lot to learn but as Jamie says if you have the passion, do the right thing, have good mentors and are good with people the money will follow. 

I say go for it! 

Colin Rice | CDR Finance
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