This by no means constitutes advice and is purely my own personal thought but I'm holding out to see what happens next month.CheersJamie

Wow, that's quite a drop. Do you (or your crystal ball) think they'll fall much further?Thanks for sharing.CheersJamie

r.crawford51@gmail.com wrote:
I need help with negotiating

Hi againYou just need to work out the price that you're willing to pay.To come to that price, you need to do a heap of research on the area, property, comparable sales, vendors reason for selling, etc.Once you've determined the price – base your negotiations around it.Personally, I…[Read more]

SHales wrote:
Hello people, I haven't been around here in a while.  We want to sack our current property manager and hire another.  We've chosen a new one.  Is there a specfic legal process I need to go through?  Is there a PAMD form for this ( I couldn't find on on the fair trading site).CheersSH

Hi SHIf you already have tenants in place, req…[Read more]

johk wrote:
When you say “set-up a third split” do you mean have a separate mortgage for the IP and not “bundle” it up with the PPOR? Cheers,Johk

Hi JohkYep, that's the exact reason.CheersJamie

ABC1234 wrote:
So why put 10% idle for 2 years when I can use it on an existing property and start generating income?

Investors do it in anticipation that the property will be worth more upon completion.You don't necessarily need to use your own cash. You could look into a long-term deposit bond. To get one, you'll need to demonstrate that you…[Read more]

It’s still available.

Cheers

Jamie

Hi and welcome to the forumPersonally (and this is a personal decision) I've always had a preference towards buying your own home first and then getting into property investing afterwards. That way, you can take advantage of any Govt. FHB incentives such as the FHOG and concessionary stamp duty (if available). Also, if you purchase something that…[Read more]

Hi Johk

The purchasing costs are a little out – they don’t add up but it’s close enough to what it would be.

You should factor in land-lord insurance – say $15 per fortnight for a unit.

Repayments on $299,500 at 8% rates should be $922 per fortnight (interest only) – don’t set this up as P&I

You’ll be able to claim depreciation as well – gr…[Read more]

Sorry – forgot to add something. LMI doesn't necessarily have to be viewed as a bad thing – this blog entry explains why.CheersJamie

lesmisfits wrote:
Hello all I have applied to become an australian permanent resident, and would like to purchase my first home when this happens (hopefully within 1-3 months).

Hi, welcome to the forum.

lesmisfits wrote:
Here is my situation : My income, before tax : $85k per year Partner's income, before tax : $55k fixed + commissions ($25k…[Read more]

Hi CharlitaylaIt doesn't matter whether you invest in urban, regional or rural areas you still need to carry out your research to determine whether it's going stack up as a good investment. The most important things to consider IMO with rural areas are vacancy rates and likelihood of capital growth. Vacancy rates should be easy enough to ascertain…[Read more]

MJP wrote:
Thank you Jamie,I appreciate your blog too! It is so clear.MJ

No worries at all. I like to keep things simple. That entry might be used by API magazine in their upcoming newsletter.CheersJamie

What are the vacancy rates like in the area? Can you call up some property managers and ask them about the rental demand?If you're concerned about the property not being rented out then I'd reconsider purchasing in that area. CheersJamie

Corie wrote:
Not sure if its just the wording but the tax deductable interest repayments go back up in with a redraw too. Do you mean that I can still claim the interest as a tax deduction if I take that 20k out and use it on a car. ie the interest on my car repayments are also tax deductable assuming I used the 20k from my offset…[Read more]

Redraw – you pay down some of the loan and take these funds back out. That's "redrawing"Offset – is like a savings account linked to your loan. If you have a $10 loan and you put $1 in your offset account – you would only pay interest on $9Difference between the two.Redraw – when you "redraw" those funds, they won't be tax deductible if they are…[Read more]

pinkboy wrote:
Coloured render is tricky to get the right colour from a small sample (pretty much like trying to choose a whole house colour from a 2" square card from bunnings). 

My thoughts exactly.

pinkboy wrote:
Also be mindful that amature persons spraypainting could be disasterous if you havent got the right precautions in place for…[Read more]

Corie wrote:
What is the difference between an offset account and a redraw?

Hi CorieHere's a recent blog entry which explains how Interest Only with offset works.CheersJamie

Hi ChrisI'm not sure if this helps but I put together this blog entry the other day on ways we've helped clients boost their borrowing capacity.It's available here CheersJamie

The "first" year reference was just in regards to ANZ waiving their Breakfree package fee of $375 for the first year. You'll have to pay the fee from the second year onwards (that's assuming you're getting the breakfree package). These annual package fees are not uncommon. Each major has one for their pro pack product.CheersJamie