Hi TanjimhAt first glance, I'm not convinced any would add much extra value. They also seem like quite expensive options.What sort of benchtop will go in at present?I remember reading a very general comment somewhere about timber floored homes being easier to sell – but I would have thought it's much of a muchness and either would probably look…[Read more]

Scratch wrote:
I find it strange that you have P&I on your IP and IO on your PPOR, I would have thought it would better the other way round. Purely my opinion and what stood out. Get an expert to help you make your next move if you're not sure, there are a few trusted ones in here from time to time.

That was the first thing that stood out for…[Read more]

Hi EricI wouldn't be paying P&I on an investment property if you've got a non-deductible PPOR debt. I wrote an article on this subject for API magazine last week – http://www.apimagazine.com.au/blog/2012/03/interest-only-or-principal-and-interest/CheersJamie

Hi thereSorry to hear – I can imagine it would be extremely frustrating.If the agent had of known that the property was being resold than yes, I'm with you, it would have been deceitful. However, there's a possibility that they had no idea that the owners were going to sell up in three months time and were simply conveying the message they'd been…[Read more]

Hi vasWelcome to the forum.I can't comment on the area because I'm not that familiar with it.In terms of the finance side of things. It's difficult to comment without further info. It wouldn't be a bad idea to get a decent broker to crunch the numbers for you and work out what's achievable.CheersJamie

Hi MarieI haven't heard of him.Is the price of the property inflated compared to similar properties within the area? What does your accountant say about the proposed financed structure?I can tell you're being cautious (which is good) – because you wouldn't have stumbled across this forum otherwise. Continue to do your research and don't jump into…[Read more]

Yeah I thought it was a bit rich – considering we had an IP carpeted for around $30m2. I guess the difference here is that it's our PPOR and we don't mind paying for quality – however, this still seems a bit excessive. If anyone knows of any Canberra sand/polish companies I'd love to know their details.CheersJamie

Catalyst wrote:
The question is too broad to provide a 1 2 3 answer. The answer is- it depends. I have all 3. I buy for the deal, not whether it's a house, unit or villa. If the numbers work I buy it.

Perfect response. I was just about to provide the same until I read this.It's all about the numbers – providing the type of dwelling fits the…[Read more]

Hi ZanymrieA few questions off the top of my head that I'd be considering if I were in your shoes.How are they paid? Are you paying them a fee for service or are they getting paid a kickback from the sale of the property that you're purchasing?What type of service is actually on offer? Are they helping you locate a property (in which case I'd use…[Read more]

Those prices seem really good. I just spoke with a business in Canberra and he told me to budget around $60 – $70 per m2.CheersJamie

He pops his head in every now and then.CheersJamie

Hi S0805If the lender allows, set-up an offset against that $95k interest only loan. When the funds settle – move them into that offset. That way, you're not paying any interest on the funds until you use them. CheersJamie

We've always allowed pets in our IPs and haven't had any issues. It's not easy to find a rental that allows pets so the tenants are generally longer-term and good quality. CheersJamie

I'm not an accountant but yes, usually not an issue.CheersJamie

Yep, must admit – I've had a fair share of Destiny STG portfolio holders come to us asking for advice on their current structure. That's one area where Lomas could improve.CheersJamie

Hi GhorvathWelcome to the forum.The structure you've outlined seems about right.Depending on the lender, a normal interest only loan may suffice (as opposed to a LOC). It will be a little cheaper also.I wrote a blog article for API mag on loan structure this week -…[Read more]

Hi CoxyThe vast majority of my clients use equity to fund their purchases.Those starting out generally use the equity they have in their PPOR.It's important to get the structure correct from the start – to avoid crossing your PPOR with your IPs, etc.It looks like you've got a little bit of equity up your sleeve that could be used for your first IP…[Read more]

Hi dkb87I've never used them but I do think Margaret Lomas is a fantastic investor. I enjoyed her books when I first started out investing and if I have the time I like to watch her tv show on foxtel.What's the main motivation behind using a company like Destiny? With a bit of self education, time and effort you'll be able to do the numbers on…[Read more]

Hi JakeCongrats on your first IP.The interest only with offset is a fantastic structure for what you're setting out to achieve.My only pointer is that if your second property is also going to become an IP, then you could look at using the funds in the offset to pay down some of the loan from IP 1 and then reborrow it to fund the deposit/costs on…[Read more]

Hi KatSeems like a reasonable thing to do. I always tell my clients not to worry about how much the bank will lend them – instead, work out what you're comfortable with repaying each and month and use that as your benchmark.For what it's worth, ING aren't the best when it comes to working out borrowing capacity. I also suspect you may have not…[Read more]