Cattleya wrote:
Hello All,I have a negatively geared IP. Of late, the tax return has been diminishing because I have been paying interest and principal (I do want to pay the principal) and a little bit more – whenever I find any spare cash. Now I have enough equity in there (approx. $100k) and I want to get more tax return. But I am nervous…[Read more]

Nooob wrote:
JamieYou are 100% correct. I need a mentor but usually mentors are sooo successful that they don't need to help a noob.I've been in touch with Mortgage Choice but they were not interested in providing a strategy and I understand that it is not their field.I found one of these "all in one shops" which is a whole package and…[Read more]

Hiya

Welcome aboard.

It will sound biased – but you should speak with a decent broker. They’ll listen to your plans and help you devise a strategy. Ideally you’d want to work with someone that owns IPs and understands the ins and outs of mutli property finance structuring.

A financial planner can’t provide credit advice (unless they’re licensed…[Read more]

Hi David

Welcome aboard as well.

You’d be best off starting a new thread.

Cheers

Jamie

Hi jaq

Welcome aboard.

Your friend is right – you can’t have a subject to finance clause for an OTP purchase. I doubt any developer would allow this.

OTP (particularly in the current environment) comes with risks – obtaining finance being the biggest one.

Cheers

Jamie

Tread carefully when dealing with the branch lender – chances are they won't have a clue about what it is you're trying to set-up. Some are good – but many aren't.Stamp duty is about right.CheersJamie

Hi StreakerYep – on those numbers, a purchase of $265k is certainly possible.There's no reason why you'd have to cross collaterise – but the bank will no doubt tell you otherwise.Have you considered using equity for those renovations rather than your own cash?Instead, you can keep that cash tucked away in an offset account and treat it as an…[Read more]

Yep, that’s the one.

Cheers

Jamie

Hi WakeI understand the confusion.To me – generating wealth via property is about finding balance. You need the capital growth to continue growing the portfolio – but you also need the cashflow to sustain it.I have adopted a similar strategy to yours – except most of my purchases are in and around Canberra.I buy properties that I can add value to…[Read more]

Hiya

Plenty in Wagga.

You can get one bedroom units in Queanbeyan (just outside Canberra).

Cheers

Jamie

Hi WendySounds like the bank is trying to cross collaterise your two properties – there's better ways of approaching this.Personally, I don't view LMI as being a bad thing at all. It can be leveraged to grow the portfolio at a quicker rate.I wrote this article for API magazine on the topic.CheersJamie

Hi thereIt's possible to tap into equity in a short time frame – not all lenders allow it but there are those that do.If the equity is available, then there's no need to cross collaterise the two properties. CheersJamie

Personally – I wouldn't touch it.The growth rates on these type of dwellings is very low.Financing them can be a problem too – you'll need a decent size deposit.CheersJamie

Hi KeikoREF might be cheaper than standard LMI but are you ever planning on taking the loan up to 90% in the future for an equity release? If so, ING aren't a good option – they'll restrict the cashout to $5k if the LVR is above 85%CheersJamie

Hi MichaelThanks for the input.To be honest – I think you've confused matters even more.The original poster asked a pretty straight forward question –  if he'd be charged a break fee on his fixed loan (as indicated by his lender).The answer is a fairly simple one.CheersJamie

If I were in Sydney and in need of a solicitor I'd be getting in touch with Terry above.CheersJamie

Hiya WisepearlI'm not an accountant but I'd assume the purpose test would be applied when porting the loan to a new security. If the loan secures an IP and then ports over to secure another IP, then I can't see why the debt wouldn't remain deductible the entire time.Is that what you mean?CheersJamie

Hi PromaxWelcome aboard and welcome to Oz.This forum is a good place to start. It's full of up to date info and there's plenty of investors willing to answer questions.CheersJamie

I'm certainly no property spruiker and I'm all for a balanced argument….but the way I see it, if the stock market is looking grim and rates are dropping…..this should make property an attractive asset in the current environment. CheersJamie

Hmmmm….this kind of smells like late 08/early 09 to me.I wonder if sub 5% fixed rates will reappear at some point???CheersJamie