Which lender is this with?

How much is your current loan?

What is the estimate purchase price of your IP?

Option 3 sounds like your best option – but hard to comment on the info provided on whether a new lender for your IP is best.

Why they would even suggest option 1 is beyond me…..

Cheers

Jamie

Mosaicrocks wrote:
Where is the best place to get legal advice on this type of thing?

Contact Terry W

Cheers

Jamie

Investor sam wrote:
I'm just trying to get an idea on how most investors afford their second property, whether its just there large wage that allows them to afford the loan or they just pay off a lot of there first IP and use the large amount of equity to purchase it?

A nice income can help but careful loan structuring, IP's that aren't…[Read more]

Hi bugeye

It's certainly doable – this is how I kick started my portfolio.

Providing your borrowing capacity is ok – you can tap into the equity in your current property which will act as the deposit/costs on your first IP.

After you've purchased the IP and carried out renos, you can have it revalued and if it's gone up, tap into the newly…[Read more]

Hi Adrian

What industry are you in and how long have you been in it?

Like Richard said, there's quite a few variables which will determine whether it's possible or not.

Cheers

Jamie

It all depends on the actual location.

Each lender has a different policy on this – some that have an underwriting authority with the LMI provider may be more lenient in providing higher LVR's for certain locations.

However, to get an idea of areas that LMI will consider, you can suss out these two…[Read more]

Hi Sam

It's a second loan set up against your current property. For example, just say your current property is worth $400k and you were able to access equity up to 90% of its value, you'd have the following set-up:

Loan 1: $315k (current loan)
Loan 2: $45k (this is the equity release or sub loan)

The $45k would then be used to fund the…[Read more]

Hi there

Welcome to the forum.

Redrawing the money to fund your next PPOR isn't a good idea. The funds used to purchase the next property won't be tax deductible as they're being used for a new PPOR.

To determine whether or not funds will be deductible we apply the "purpose test" – what are the funds being used for? If the funds are being used…[Read more]

Orange has been on the radar for quite some time. I haven't been keeping a close eye on it but I doubt it would still be considered a hot spot – happy to be corrected though.

Cheers

Jamie

Hi Coota

Welcome aboard.

Signing up to forums like this are a good start. It's full of up-to-date, free info.

The historic growth only shows one side of the picture. Is their anything that's happening now or in the future within the area that would stimulate growth?

BA's can be a good option for interstate purchases. I have a number of clients…[Read more]

Hi Crows

An unencumbered PPOR and IP is a nice problem to have

I'm with you in regards to placing importance on CG – without it, it's difficult to get ahead.

Assuming you're talking about the northern Adelaide burbs – is there any scope for picking up properties that can be cosmetically renovated to add value? This is how I started out – and…[Read more]

Can't recommend anyone in Perth. Having said that – you can use any broker in any part of Australia – everything's done via email and phone these days.

Cheers

Jamie

Just one offset against the PPOR.

Cheers

Jamie

Agree with Jac M above.

I often speak with people who are so overloaded with investment information that they can't make a decision.

They try to ensure that they find something within a certain distance from the CBD because that's what one guru said – while also trying to achieve a certain yield that's recommended by another guru.

It also has…[Read more]

Hi there

Is it being professionally managed? If so, the PM should be on the ball in respect to how much to charge and how to manage the risk.

For what it's worth, we've allowed pets in all our properties and (touch wood) have had some excellent, long term tenants.

Cheers

Jamie

Get a pro onto it – a DIY job on an entire house can look like a dogs breakfast and will end up devaluing the property.

Cheers

Jamie

Catalyst wrote:

REALLY!!! I have to disagree. I'm seeing more investors getting in than in the previous 4 years in Sydney. Agents are also mentioning the influx. Pretty hard to get a bargain these days. I'm seeing contracts being signed the day of the opens.

Investors are buying. This August has been our busiest month in settlements – the…[Read more]

Sounds about right with a couple of caveats.

1. make sure the increase to 80% involves a separate loan split (ie. they're not just lumping the entire loan together)
2. they keep both properties uncrossed

Cheers

Jamie

livewildcard wrote:
Domains app is really good. I use it all the time whilst out and about see what is avaliable around the area it works well.

This app works really well on the iPad.

Cheers

Jamie

Totally agree with Joe.

If you don't know a whole lot about real estate then it's probably not a good idea to start off with investing in a resort in Bali…..

Cheers

Jamie