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

July 30, 2016 - 12:30 pm

The ultimate aim in my eyes is to have an asses that has the potential to increase in value and also earns an income (puts money in your pocket).

Like my accountant says, if you are paying tax it means you are earning money and there aint nothing wrong with that :)

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

July 30, 2016 - 11:58 am

Remember that any interest gain is taxable if it is outside and offset account. If in an offset account it is deamed as savings therefore your “return” is whatever the variable rate is. For example 4.17% variable isa 4.17% tax free savings so effectively a return in reverse :)

• This reply was modified 7 years, 9 months ago by  Colin Rice.

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

July 29, 2016 - 12:15 pm

Thanks Corey, sounds like Perth 1-2 years ago.

Things have calmed down here so will stick to my own patch then.

Cheers.

Colin Rice | CDR Finance
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July 28, 2016 - 7:29 pm

Whey protein powder and good clean food as much as possible.

Colin Rice | CDR Finance
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July 28, 2016 - 7:23 pm

B2 luck wrote:

I wasn’t aware that that was even an option ( extending OI!). Well, if we can extend our OI loan for another 5 years, then yeah, we would definitely like to keep it.

Easily done via refinance to anther banks assuming serviceability is OK which isn’t difficult to verify in most cases.

In regards to Benny’s comment about an MB being familiar with Emerald a call to the bank you are considering (made by MB) to check any postcode restrictions would satisfy that concern.

Also another point to consider is that you will have a valuation shortfall compared to initial purchase price so may need to access some equity from PPOR to make up the shortfall, thats if it isn’t already cross collaterlised which can be sorted out at the same time as the refinance.

May also pay to run a few different valuation types with a few lenders such as desktops that often come in higher than full vals or kerbsides.

Did you buy this property via a Property Marketing Company disguised as an “educator” or something similar?

• This reply was modified 7 years, 9 months ago by  Colin Rice.
• This reply was modified 7 years, 9 months ago by  Colin Rice.

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

July 28, 2016 - 7:14 pm

Im thinking about Adelaide as well. Much in the way of subdivisions DT & Corey?

Colin Rice | CDR Finance
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July 28, 2016 - 4:16 pm

There are better alternatives for cf+ properties out there.

The PITA (pain in the arse) factor would be high as well.

Colin Rice | CDR Finance
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July 28, 2016 - 4:12 pm

Finance would likely be limited to 80% LVR or less due to the size of the apartments and depending on the m2 may be limited to a few lenders or possibly none so cash buyers only?

• This reply was modified 7 years, 9 months ago by  Colin Rice.

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

July 27, 2016 - 2:03 pm

I would engage a successful and experienced Project Manager to assist you. To many things can be missed by a novice, especially an uneducated one!

The more you self educate the better you will be at identifying good, average and bad advice.

I have a great pdf eBook I can email to you that is very practical info on property development – [email protected]

• This reply was modified 7 years, 9 months ago by  Colin Rice.

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

July 27, 2016 - 1:41 pm

Nope but did a google search and got this; http://www.stonerealestate.com.au/

Tell your mate to go along as you always pick up a nugget or two from seminars, even if it is what not to do.

Before committing to anything would need to have a chat to an experienced and successful property investor about the suggested strategy Stone are spruiking.

Hint: there are a few on here :)

• This reply was modified 7 years, 9 months ago by  Colin Rice.

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

July 26, 2016 - 5:19 pm

I did a Bob Anderson Bootcamp in Melbourne last year and worth the $$$ and effort.

I have a great little pdf book on Property Development I am happy to share with fellow forumites.

Email me at: [email protected]

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]

July 26, 2016 - 4:50 pm

Could be done but as mentioned things can go wrong.

Extra hits on your file and perhaps questions (possibly not asked to you) may arise causing the lender to decline your application.

Also need to weigh up the time and effort expended v interest saved!

Could spend your time other than managing the credit cards working overtime at your job for example therefore potentially increasing serviceability.

• This reply was modified 7 years, 9 months ago by  Colin Rice.

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

July 26, 2016 - 4:34 pm

Banks are a business and it makes sense to pass on a rate rise asap and drag your heals when the opposite occurs.

From a PR perspective, not so good!

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]

July 26, 2016 - 4:28 pm

Depends on your strategy? Is it cash flow or capital growth you are chasing?

Generally land increases in value and building decrease in value. In saying that the older style apartments usually have a greater land component than newer similar properties.

Rule of thumb for land / building ratio is 70 / 30 so this may help you determine your strategy.

Also would be a wise move to ask for last 2 years financials and minutes of the AGM from the strata manager via the selling agent to check what works are in the pipeline as older buildings will need ongoing maintenance.

Colin Rice | CDR Finance
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July 26, 2016 - 4:16 pm

Shane W wrote:

Hi Brizza,
Unsure if you can borrow 95% of the properties value and capitalise the LMI on top of this.
Cheers

Still some lenders in this space.

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

December 9, 2014 - 7:45 pm

To be blunt, DONT DO IT. I have refinanced a few of these recently due to severely hampering borrowing capacity.

Last one went from $1300 cash out the door per month to just over $100 per month.

I suspect a very clever sales pitch appealing to human emotion is behind these nasty novated leases.

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

August 12, 2014 - 4:23 pm

How likely is a client to get audited by the tax department in your experience Terry and does reason apply to the audit?

• This reply was modified 9 years, 8 months ago by  Colin Rice.
• This reply was modified 9 years, 8 months ago by  Colin Rice.

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

August 12, 2014 - 12:41 pm

CanberraClaire wrote:

I guess at the end of the day, they’re passing their opinion off as fact. Dangerous, yes. Outside their scope, certainly.
Couldn’t agree with you more about who to listen to, but so many accountants are narrowly trained that unless they’re heavily investing themselves, I wouldn’t go near them for structuring advice either!

I work with accountants that are property investors and I know more about structuring finance than they do yet legally limited on how deep the advice gets never mind the average bean counter who often gives the exact opposite advice that is required.

And when I say “run this past your accountant before proceeding” I cringe with tongue in cheek.

• This reply was modified 9 years, 8 months ago by  Colin Rice.

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

August 5, 2014 - 3:13 am

Not surprised at all and also wont be surprised if the ATO are preparing to launch a full scale assault on IP loans as the majority will be set up incorrectly.

I have given specific advice to clients to then have the teller or loans officer attempt to undermine it. I tell my clients to call me whilst in the branch and put me on the perpetrator to advise accordingly, lol.

I could share some doosies that would make your head spin with advise that has been given to clients. the people delivering it are either extremely ignorant and dangerous or deliberately undermining my advice!

• This reply was modified 9 years, 9 months ago by  Colin Rice.
• This reply was modified 9 years, 9 months ago by  Colin Rice.

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

August 5, 2014 - 3:02 am

No, you cant transfer the 400k to the new PPOR as it is secured against the original property.

You can access generally up to 90% of the original properties value to be used as a deposit towards a another property purchase.

• This reply was modified 9 years, 9 months ago by  Colin Rice.

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