Hi there

Welcome aboard.

Can you increase the rents?

Are you claiming depreciation?

Have you considered lodging a PAYG variation with the ATO so you can pay less tax throughout the year instead of waiting for the large return at the EOFY?

Cheers

Jamie

I take it they were notified of the change to ownership?

If so, speak to the principle/owner – that's simply unacceptable.

You shouldn't have to rely on them recouping the money from the previous landlord. They should just pay you the rent that's owed to you asap.

It goes without saying that a new PM is in order. Ask the new PM to waive the…[Read more]

I had a year of utilities bills sent to the incorrect address – they were water bills that were sent to the IP address (instead of my address).

It was agreed the tenant would pay the water bills but they never bothered – and I simply assumed all was being looked after because I never heard otherwise (that's because all of the late notices were…[Read more]

On a side note – don't forget to claim depreciation as well.

Cheers

Jamie

No – not necessarily.

How much were your other costs such as:

property management fees
rates
land tax (if applicable)
insurance
maintenance
body corporate (if applicable)
other….

You need to factor in ALL of the costs associated with holding the property. If the rent coming in exceeds the total costs than the property is positively…[Read more]

Hi and welcome aboard.

Another option to consider is extracting equity in your current property to kickstart your investing.

With those numbers, you potentially have $30k that you can extract – which could be enough to cover the deposit/costs for your first IP purchase.

Cheers

Jamie

Hi Mrs Bee

What you're aiming to do is possible.

If your property is valued at $340k, you potentially have $46k that you could access for the deposit/costs on your next purchase.

I'm not sure how much you're looking to spend on the next purchase (or how much you can afford) but the $46k could be used as a 5% deposit and costs on a property…[Read more]

I'm with Xdrew. Best to arrange a few inspections in advance.

However, if you're at a very early stage of your investing and you're not ready to make the plunge – the agent might think of you as a tire kicker and if it's a smallish town there's probably not going to be too many local agents….just something to keep in…[Read more]

5% plus enough funds to cover costs is the minimum.

Technically some banks will allow equity releases up to 95% but it's a painful process and difficult to get approved.

Cheers

Jamie

PaperChaser wrote:

Jamie, that's one thing I was unsure of. I thought you could only take it to 80%LVR (was hoping for 90% tho).
I dare say 95% is not allowed?

Hiya

90% is generally possible. I had a 95% cashout done with CBA once but isn't something I'm keen on going through again in the near future.

Cheers

Jamie

Excellent advice from DWolfe above.

It's no surprise that the selling agent told you that there would be plenty of rental demand for the property – they wanted to sell you the property.

I'd also have a chat with the onsite management team – ask them what their experience has been like with furnished properties and whether they have any demand at…[Read more]

Welcome aboard – nice avatar.

Cheers

Jamie

You could possible take your current loan up to 90% LVR which provide you with a cashout in the vicinity of $27k. The equity release combined with your $10k cash might come close to covering two purchases (that's without knowing what your borrowing capacity and a heap of other things looks like).

Cheers

Jamie

Hi JD

It's a personal choice.

If it were me, I would have forgone the expensive car early on and put the cash towards an asset that appreciates rather than depreciates.

Don't get me wrong – I love cars, but there's a time for them and spending half your salary on one when you want to purchase a property doesn't sound like the right time.

Each…[Read more]

Welcome aboard Daveski

Where are you from? What are you aiming to achieve?

Cheers

Jamie

Fox House wrote:
and having 20% deposit to avoid the LMI.

This is quite an old school way of thinking.

Personally I don't have an issue with LMI – it's certainly enabled myself and a lot of my clients to build their portfolios.

Have a read of this article on LMI.

Cheers

Jamie

Hi Matt

Welcome aboard.

What you're aiming to do is possible – it's something we do daily for our clients.

However, it's important that it's done correctly so you avoid cross collaterisation of your PPOR and IP and so you can maximise tax benefits.

A decent broker will be able to assist.

Cheers

Jamie

Hi there

Which country are you looking in? These websites don't sound familiar.

Cheers

Jamie

I'm with Tom on this one. There's a reason the deal couldn't be done as an owner occupied loan.

Cheers

Jamie

PDimi wrote:
Where are you based Jamie as I am situated in South West Sydney.

Hiya

I'm based in Canberra but the majority of my clients aren't. Looking at the last five loans I submitted, the clients were based in East Melb, West Syd, FNQ, Canberra and Perth.

Everything can be done over phone/email. I won't be able to pop around for a coffee…[Read more]