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

August 18, 2016 - 4:28 pm

I reckon we will get to zero or very close on the cash rate.

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

August 18, 2016 - 4:02 pm

Nope. Check similar established properties nearby to gauge purchase price is on point.

Check out this thread from Somersoft for more tips;

https://www.somersoft.com/threads/how-do-i-do-due-diligence-on-a-builder.108066/

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

August 18, 2016 - 2:52 pm

Thats nice. Whats your question?

Colin Rice | CDR Finance
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August 16, 2016 - 9:45 pm

The only reason for a 95% loan would be lack of deposit.

88% + LMI keeps it below 90% in most scenarios which opens up many more options and also lessens risk to bank so easier to get the green tick of approval.

Colin Rice | CDR Finance
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August 16, 2016 - 9:34 pm

20% is the rule of thumb for developements.

Im not a reno guy but would think the same % applies to make it worthwhile.

Colin Rice | CDR Finance
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August 16, 2016 - 9:33 pm

20% is the rule of thumb for developements.

Im not a reno guy but woild think the same % applies.

Colin Rice | CDR Finance
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August 16, 2016 - 12:35 pm

1. Change PPOR loan from P&I to IO only.

Should be. You will have to contact the branch lender on the process involved.

2. Delink offset from PPOR to new PPOR.

Correct and move any savings into it as you want to offset non deductible debt first.

3. Do i start making P&I payments in the PPOR or keep that as IO as well?

Up to you but need to realise that if where to convert this to an IP in the future by going P&I you are reducing the principal therefore reducing potential interest deductions.

Me personally, I keep all loans IO but need to be careful advising others with this due to responsible lending. If you have a legitimate reason and are disciplined with finance should not be an issue.

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

August 16, 2016 - 12:07 pm

You need to change your PPOR to IO and delink offset and link to IP that will become your new PPOR assuming you are at same bank.

Make sure your loans are not cross collaterlised. Looks like the are? You can check the original loan agreement under securities and if 2 properties are listed it x-coll and you need to tidy this up as the deeper you go the harder it can be to restructure. With the recent changes to lending criteria in some cases it may not be possible or limited options.

At the risk of sounding biased you need to dump the NAB loans officer and get an IP savvy broker on your team. There are a several to chose from on here.

I have a hand out explaining the reasons not to cross collaterlise. Email me for a copy.

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

August 16, 2016 - 11:58 am

I looked on their website and it seems very vague. Looks like a one stop shop to me.

I have posted this elsewhere but will do it again so people know if they are dealing with a self serving spruiker or a professional advisor.

There are three types of people in property;

1. The Salesman
2. The Advisor
3. The Spruiker

Knowing the difference could mean a dud investment property or an A grade investment property;

http://www.thepropertycouch.com.au/how-to-spot-a-property-spruiker/

• This reply was modified 7 years, 8 months ago by  Colin Rice.
• This reply was modified 7 years, 8 months ago by  Colin Rice.
• This reply was modified 7 years, 8 months ago by  Colin Rice.

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

August 16, 2016 - 11:46 am

Have you been using redraw facility. That is putting money in the home loan and redrawing it or just making min P&I payments?

• This reply was modified 7 years, 8 months ago by  Colin Rice.

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

August 16, 2016 - 11:05 am

How do i go about switching my IP – > PPOR and my PPOR – > IP ??

Really depends how your original structure for each loan was set up???

Ideal structure for PPOR would have been interest only with an offset account therefore preserving the original principal and maximising the interest deductions once converted to an IP.

Did you set it up like this or have you been using redraw facility. That is putting money in the home loan and redrawing it?

What are the tax complications with this? And how will this affect my tax deductions???

Hard to say until we know your original and current loan structure?

Im going to assume you IP is interest only? If so you link an offset to it and keep it IO and store savings / principal in the offset never actually reducing the original debt unless for other reasons such as debt recycling or serviceability reasons to name the most common.

• This reply was modified 7 years, 8 months ago by  Colin Rice.

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

August 15, 2016 - 5:29 pm

Hi Ronan, I did his weekend bootcamp and self study modules.

Cost 5k all up. I know how my brain works. If I let info in it rattles around for a while before I apply it. Sometimes its instant application and other times it marinates for years.

If I dont apply it in a practical sense it literally haunts me until I do so a 5k investment is worth it to me.

Most will do it and probably do nothing. Dont be like that :)

Colin Rice | CDR Finance
http://cdrfinance.com.au/
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Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

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

August 15, 2016 - 3:14 pm

is this a problem the building had when you purchased even if it wasn’t known
is what the levy is doing a repair or an improvement as defined by the case law

If so this could likely have been discovered pre purchase by asking to see the last 2 years AGM minutes and financials as this will have all the dirt on what needs to be done to the building now and in the future.

Could even use it as a bargaining tool in a depressed market if property not selling if you know of upcoming repairs and special levies etc.

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

August 15, 2016 - 2:05 pm

There are three types of people in property;

1. The Salesman

2. The Advisor

3. The Spruiker

Knowing the difference could mean a dud investment property or an A grade investment property;

This video sums it up nicely;

http://www.thepropertycouch.com.au/how-to-spot-a-property-spruiker/

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

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

August 8, 2016 - 6:02 pm

Im friends with him on FaceBook so he must be a top bloke ;)

Colin Rice | CDR Finance
http://cdrfinance.com.au/
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Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

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

August 5, 2016 - 10:02 pm

This is an excellent short and informative video on how to determine if you are dealing with a property spruiker;

http://www.thepropertycouch.com.au/how-to-spot-a-property-spruiker/

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

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

August 5, 2016 - 10:01 pm

They will convince you that you NEED to refinance your home loan…. commission payment number 1
… then do an equity release…. commission payment number 2
…. and then a third loan for the actual property … commission payment number 3
and finally the big payout …. a commission from the developer in the realms of between $30K-$60K+ per property (incidentally very close to how overvalued the property is … surprise, surprise)

They will likely cross collaterlise the securities to hide the undervalued IP purchase as a stand alone structure as you have described will make this easier to spot. This is one of the many trick they will pull on the unsuspecting public.

They still get the same commission fora cross coll structure with one less application therefore less paperwork as only one loan is generated for both properties.

Mel wrote:

I just did a brief Google search and it seems as though this finance clause (‘subject to finance’) can be used against us. The way I understood it: if we don’t make every endeavour to get the finance then we can end up owing a lot more money than the 0.25% penalty. Does this sound right to you? Thank you again for your advice.

It is not difficult to get out of a finance clause. Most sales agents will accept a bank or broker letter.

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

August 5, 2016 - 9:47 pm

As with any strata purchase always ask for a copy of the last 2 years AGM minutes and financials as this will tell a story you will need to be aware of before proceeding.

Find out who the commercial agents are in the are and talk to them about the particular location as they will likely have intimate knowledge about the complex.

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

August 5, 2016 - 2:58 pm

Sounds like a different dynamic than Perth in this regard the way you have described it.

I lived in Melbourne for 3 years in the 90s (loved it) and remember the mix of the poorest of the poor and the very wealthy. Few pockets like that in Perth still but getting less and less.

• This reply was modified 7 years, 8 months ago by  Colin Rice.

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

August 5, 2016 - 2:35 pm

Not personally. You would want to check to see how many commission houses are still in the area though as this will effect rental / sale demand and values.

• This reply was modified 7 years, 8 months ago by  Colin Rice.

Colin Rice | CDR Finance
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