proogle wrote:
Got it Terry but for beginner in IP world, do you recommend trust kind of structure? Is it not advisable to start  with IP on your own name and then see how it goes for first 6 months and then decide whether to go for trust or not from 2nd IP onwards?

It's a tough one.

I speak with so many people that have set up complicated,…[Read more]

Catalyst wrote:
Many people have difficulty getting a valuer to value a place just after a reno. They sometimes find it difficult to believe a property can go up by 10's of thousands in a few months.

Yep, can be a massive pain.

We had one in a regional area recently where client renovated, arranged reval and the valuer simply valued it at…[Read more]

Hi David

Option one is no good.

Here's how we generally set it up.

Loan 1: Equity release against your PPOR to cover the deposit/costs on the IP. This is usually enough to cover a 20% deposit plus costs but can be a larger amount if you want to contribute a larger deposit to take advantage of a lower rate on the IP loan.

Loan 2: The remaining…[Read more]

JacM wrote:
Hi Tiggar

Feel free to drop me a Private Message by clicking on the "Send PM" link on the left inside this post box.  Happy to have a quick chat to you on the phone to understand the issue and point you in the right direction.  Remember to include a contact phone number in the PM if you would like to do that.

I'd be taking Jac up…[Read more]

No worries – and I've responded to your PM.

Cheers

Jamie

I must admit – the number of enquiries and investor deals that I've been processing since Christmas is the highest it's been in the last 4 years for the December/January holiday period and other brokers I know have made similar comments. 

Historically, it's supposed to be a bit of a quieter time but not this year. I can only assume it's a good…[Read more]

Every investment decision comes with an element of risk. 

I understand where you're coming from in terms of highly negatively geared properties impacting on future serviceability but the fact is, without some capital growth the portfolio is going nowhere. 

Cheap properties in the sub $100k mark are generally found in rural/remote locations with…[Read more]

Hi Pagey

Now you just need to execute your plan.

Buying a couple of properties a year will require careful planning. The structure needs to be sound and the right lenders need to be selected at the right time as you continue to accumulate properties.

Best of luck.

Jamie

Hi again Mark.

If your property is worth $600k and you have a mortgage of $125k then you've got $355k of useable equity. This is calculated by taking 80% of it's value and then subtracting the current loan amount. Some lenders allow you to access equity up to 90% of the properties value but this isn't really relevant in your situation as $355k is…[Read more]

Ahhh geeze boshie, Nathan is right – that advice is really bad.

Doing that will mix up a whole lot of investment deb with consumer debt.

It doesn't matter that the PPOR is going to become an IP – tax deductibility is determined by "purpose" rather than the security that the loan is against.

Cheers

Jamie

Bellagirl wrote:
Thank you for your reply Jamie.

I much appreciated it. 

I have been doing alot of research today and i think you may be right with the quality of tenant that we would attract in suburbs like Elizabeth.

I have actually sent off a few emails to financial advisors in hope of some steering in the right direction. 
There is so…[Read more]

tiggar wrote:
Thanks for your replies. Yes unrented for 3 years. To be rentable needs a paint inside where renos done.What does it mean to apportion costs. We borrowed 250 thousand against our own home so not an investment loan. they call it the wealth package but charge us 350 dollars a month to have it . I know we have done this all wrong and…[Read more]

No worries at all.

Personally, I'd set up both as interest only with an offset attached to the one that's currently your PPOR.

I won't comment on the renting a room for storage point – it's the domain of an accountant.

Cheers

Jamie

No worries.

You don't necessarily have to use a different lender for your IP to avoid cross collaterising.

You just need to make sure that the bank doesn't list both securities on the application and the loan offer docs.

Cheers

Jamie

Depends on who you ask.

Whether right or wrong – this sort of headline grabbing stuff comes out on a daily basis. 

Must admit though, I've never seen it referred to a "bloodbath"

Nothing new here.

Cheers

Jamie

Hi Bellagirl

Welcome aboard.

With DHA properties, the management fees can be quite high and you relinquish a fair bit of control due to the long lease periods. However, the "doing it all for you" aspect can be good for those that are risk adverse which you mention you are.

That yield isn't overly impressive either – so the capital growth would…[Read more]

Hi Mark 

Welcome aboard.

Have you considered using the equity in your PPOR rather than your own savings to purchase your investement property?
Accessing equity in a PPOR to kick start an IP portfolio is one of the most common scenarios we come across.

There's two good reasons why this would benefit you.

Firstly, the equity that you access will…[Read more]

Hi pagey

Welcome aboard.

Do you have any other non-deductible debts such as an owner occupied home, credit cards, personal loan, car loan, etc?

If so, then it's worthwhile knocking these debts on the head first before you start paying down a deductible investment debt.

This article that I wrote for Australian Property Investor magazine…[Read more]

Hi Tiggar

I've read it the same as Jac M – you've been renovating for three years????

If so, it's time to forget what your standards are and get the place into a rentable condition and onto the market. 

If you've got an owner occupied loan – focus on getting rid of that debt before you pay off your investment property debt.

To do that, you…[Read more]

I'm not sure about the legalities involved but it's quite a common request to have no photos taken during an inspection.

If I were the owner/tenant of the property and had my family pictures and belongings in the property, I'd also prefer that pictures weren't taken.

Cheers

Jamie