Hi Chris

Don’t try going direct to banks yourself. If each one hits your credit file during the conversation it’ll be ravaged. Use a good mortgage broker as they’ll know already which banks will and will not deal with you.

Hi ProtonEnergy

Yes of course you are welcome to shoot me a PM. Drop me a line to kickoff the chat and am happy to jump on a Skype call if you wish.

Hi ProtonEnergy

The challenge you will have trying to buy from afar without some sort of assistance will be the “buying sight unseen” factor, with nobody checking anything on your behalf. On one hand you could order building and pest inspections, but on the other hand the role of these inspectors sits within a specific domain. It is not their…[Read more]

Hi Kristy

As already mentioned, and just to re-iterate what Redwood said – an accountant is for tax perspective, not investment strategy. It’s a bit confusing knowing who to talk to and who knows what when you’re getting started, but you will eventually find you’ve assembled a team you are comfortable with that are saying things that you are…[Read more]

8.3% is super high, and would be higher if rates went up on you.

If it were me I’d save a little bit longer till you have what you need to go to a conforming lender. You’ve just pulled yourself out of one hole… don’t deliberately jump into another hole that it would be difficult or impossible to climb out of.

Hi JM

By the way you appear to have stolen my initials!

What’s best for one person is not what’s best for another.

If all we humans were was a spreadsheet of numbers, then I guess that all our financial strategies would be the same.

However as you’ve pointed out, you have something a little different. Some health issues to cater for (ie pay…[Read more]

Yes

Nicely said Corey. That’s the part that is normally withheld from the “commercial property is a better gravy train” story. The fact that this would realistically only be true on a cash buy.

Never buy on assumptions. Stitch that contract of sale up with appropriate conditions.

Chat to your solicitor about an appropriate DUE DILIGENCE “special condition” that would allow you time to check on things that would be deal breakers.

Hi Dean

In theory yes.

However imagine you take on an investment property that has a cashflow position that places you $150 out of pocket per week in the first year of ownership. Assume that the rent can generally be increased $10 per week in that area. That’d be a whopping 15 years before that property were covering its own costs,…[Read more]

Hi Dean

In theory yes.

However imagine you take on an investment property that has a cashflow position that places you $150 out of pocket per week in the first year of ownership. Assume that the rent can generally be increased $10 per week in that area. That’d be a whopping 15 years before that property were covering its own costs,…[Read more]

Hi Dean

In theory yes.

However imagine you take on an investment property that has a cashflow position that places you $150 out of pocket per week in the first year of ownership. Assume that the rent can generally be increased $10 per week in that area. That’d be a whopping 15 years before that property were covering its own costs,…[Read more]

Hi Dean

You have touched on a critical point with investment property selection. For a property at this price (presuming there is a mortgage over it) to be covering its own costs, it would have to have a pretty extraordinary rent price tag. Folks that can afford such a weekly rent would likely think “I’d be better off buying my own home than…[Read more]

Hi Hoss

The commercial property will require a much higher deposit, since the lenders won’t lend as much against commercial buildings as residential, and commercial interest rates are higher.

Focus on the net rental yield (after costs and mortgage interest are taken out) as opposed to gross rental yield. It might turn out that the lost…[Read more]

I’d personally give it a tiny bit longer till you can afford a house. I’d imagine it’ll take you max 6mths to be in that position.

Hi Pete / Tom

It depends on a few things;

– Whether you are interested in a particular area (because agents tend to specialize in certain areas)
– What job you need the property to do (eg capital growth, cashflow, renovation potential etc)
– Whether you have given consideration to your overall strategy (this has an impact on what role the…[Read more]

Hi Andrew

Some industry professionals specialize in certain industry sectors. In that regard, it would be handy to know what kind of business you’re planning to start :)

I’m going to say it. It is not “advice” as to what you should or should not do. However I would not touch this property with a barge pole.

Hi Tiger

You’ve hit on a point that a lot of people struggle to understand. Indeed equity is not defined as your right to a cash donation from the bank just because your house went up in value (that’s right – some folks mistakenly think they get paid by the bank because their property went up in value, and do not understand that accessing equity…[Read more]

Hi Tiger

You’ve hit on a point that a lot of people struggle to understand. Indeed equity is not defined as your right to a cash donation from the bank just because your house went up in value (that’s right – some folks mistakenly think they get paid by the bank because their property went up in value, and do not understand that accessing equity…[Read more]