If you can't demonstrate that you can service the debt then the lender isn't going to lend the money.

Cheers

Jamie

Absolutely. You can still get some depreciation on older dwellings – and like Nathan said, you've got relatively new renos to claim on as well.

Cheers

Jamie

Call me crazy but I don't think I'll ever retire – I'm the type that gets bored on holidays. I can't sit still.

I guess it helps being in a profession that I actually enjoy so it doesn't feel like work. 

Having said that, financial freedom does provide you with options – which is always nice.

However, for those that aren't financially free or…[Read more]

It all comes down to the location and purpose of the renos.

For instance, you obviously wouldn't place a $2k bunnings flat pack kitchen into a $1m property – for the same reason, you wouldn't spend $50k on a kitchen in a sub $200k unit in West Sydney. 

Are you planning on holding onto the property or selling it?

Personally, I've never worked to…[Read more]

Another year gone too quickly – and it's back to business as usual already!

Cheers

Jamie

Hi Cubez

I don't think you need to speak with three agents to have the property valued if you don't intend on selling it – its' a waste of time on their behalf and their "appraisal" of the property won't be considered by a lender when extracting equity. They will want to carry out their own valuation.

Cheers

Jamie

I also wonder if the companies that are using the rebate type models are selective with the clients they take on. I couldn't see them going to the effort of dealing with complex deals.

Cheers

Jamie

Ross.Poulter wrote:
Hi all,

I am looking at purchasing a new IP and was wondering if 
anyone had any extra conditions they use on the contract of sale over and above the usual subject to finance, building and pest inspections.

cheers,
Ross 

You can write anything into a contract. Is there something specific that you're trying to…[Read more]

We self manage some of our IPs and I simply treat it like a business – that's not to say that I'm not friendly with all the tenants, I just don't have an issue with chasing up late rent or serving up a notice if it needs to be served. 

Cheers

Jamie

There's nothing new with this approach.

It's been around for years – refund home loans was probably one of the more well known users of this model….and look what happened there.

I'd question the quality of any brokerage that needs to rebate clients in order to attract business.

As for the end of mortgage brokers in 2013….that's not going to…[Read more]

Like Richard said – you can still claim all of the costs.

Is there a reason why you've restricted your search only to gumtree ads? You may need to broaden your advertising to capture a larger market. 

Cheers

Jamie

thebigo wrote:

Jamie do you think it's worth doing a split say 340k I/O and 100k P&I, is there any benefits or disadvantages???

It's a disadvantage – just keep it all IO and park all of your extra savings into the offset account.

Cheers

Jamie

Another year that's gone way too quick! 

I'm looking forward to having a couple of days off

Merry Christmas all.

Cheers

Jamie

thebigo wrote:
My goals for 2013 are fairly simple:

1. Settle on my first house (feb)
2. Propose to my girlfriend
3. Increase my knowledge of investments prior to settlement for my first investment property (settle in 2014)
4. Accumulate accumulate accumulate $$$$$$$$$$$

Be careful you don't leave this web browser open!

Cheers

Jamie

Hi bigo

Location isn't an issue these days – everything is done via email/phone.

This morning I wrote loans for two forum customers in Melbourne, one in Sydney and ran some scenarios for someone in Darwin – all from my office in Canberra.

I think I responded to your post in another thread so won't repeat the advice here.

Cheers

Jamie

These type of reports are always coming out.

I can't comment on whether it's reliable or not. I guess you need to suss out whether the average rents are accurate for the listed areas and also look at the basis for how they're calculating the loan repayments. 

It wouldn't surprise me if it was cheaper to buy in certain suburbs with high rental…[Read more]

Hi thebigo

If this property is going to be an IP in the future then I'd consider paying a smaller deposit and copping a bit of LMI.

I'd also set it up as IO with an offset now – there's no point paying down the principle when this will become a deductible debt later on.

Here's an article I wrote on this subject.

Cheers

Jamie

Our first (biological) baby is due in April 2013 so I'm throwing all investment/business goals out the window and will be focusing on trying to support my wife as best as I can. It's an exciting/nervous time but it can't come soon enough!

Cheers

Jamie

lol – Joe, you have a way with words

Not so much the big FO but I do politely decline the business – I'd rather devote my time and efforts to customers who are dealing exclusively with me.

Cheers

Jamie

Just looking forward to a nice, relaxing "work free" day with the family – drinks, food and fun.

Not sure what Santa is bringing me – though I'm 99% sure I've been good this year. My wife was carting something large out of the car yesterday which I wasn't allowed to look at – could have just been 10 pairs of shoes for her…[Read more]