Scot wrote:
<I prefer to pay off the mortgage as quickly as possible.So with investment properties, regardless of the negative gearing, is it a wise move to do that ?

Hi Scot

If you want to go down this path – and you have a PPOR, it would be in your best interest to pay down the non-deductible PPOR debt before you move onto paying off the IP…[Read more]

Haha, you only live once. Don’t let the pursuit of money stop you from living today.

All the best

Jamie

Hi Luci

It’s a depreciation schedule carried out by a quantity surveyor. Basically, a depreciation schedule provides a list of items associated with your IP that can be depreciated.

Cheers

Jamie

Hi Sam

Does sound weird. I can’t speak for the company you mentioned but if the mortgage broker aggregates through either Choice, Fast or Plan then this fee shouldn’t exist.

Cheers

Jamie

Hi Darryl

Welcome to the forum.

To avoid cross collaterisation you would:
1. Top up your current home loan to access some cash for a deposit and purchasing costs for your next property; and
2. Take out a separate loan for the remainder

Some lenders allow cashout up to 90% of the properties value. Looking at your numbers, it seems that you’ve…[Read more]

Also, in terms of “what if” scenerios – the IP has an LVR of only 80% and this can generally be taken up to 90% later on if required. If the PPOR hasn’t been maxed out to 90% LVR, there would also be some equity to cashout there, if required in the future, as well.

Cheers

Jamie

Derek wrote:
I disagree Jamie. I don't see the $7.5K as a cost rather as a 'saving' – a little obtuse I know.Using the numbers above the investor has paid a one off fee of $7.5K. This is tax deductible over 5 yrs, or the life of the loan, whichever is shorter. Don't think for one minute I am advocating making decisions based on tax deductions -…[Read more]

Hi Dheraj

Welcome to the forum.

Might be best to have a read through this thread that keeps popping up – https://www.propertyinvesting.com/forums/property-investing/help-needed/22508

Cheers

Jamie

None will do 100%.

There’s quite a few going 95% lends for owner occupied purchases and a few are doing them for investment purchases. ING recently increased their LVR on investment and owner occupied purchases to 95% + LMI. The great thing is, you don’t have to be an existing customer, which is often a requirement with other lenders…[Read more]

Let’s hope so. If that’s the case, I’ll move some of my own loans over.

Cheers

Jamie

Hi KMMK

If you want to increase cashflow then IO is the way to the go. As you’ve mentioned, you can place your savings into the offset and reduce your interest repayments. There’s generally a fee payable for making the switch, however you might be able to get this capitalised onto the loan.

Best of luck with the wedding

Jamie

Hi Stewart

Thanks for sharing, it looks good. Another useful source for carrying out DD.

Cheers

Jamie

Derek wrote:

investhut wrote:
We mustn’t forget there will be LMI costs to pay.

Hi Derek

That’s the reason. If you are able to access sufficient equity in another property (20% plus purchase costs) to purchase the next, then it’s usually best to do so, because you avoid paying LMI.

It’s a different story if you’re using a cash deposit -…[Read more]

Thanks for the heads up xdrew – I’m sure there will be a few other happy investors out there.

I’ve got a list of websites that might help – http://www.passgo.com.au/property-data-websites

Cheers

Jamie

Derek’s right. Different banks have different criteria when assessing serviceability – while your mum might not fit the criteria with the bank she visited, she may fit it with another.

Perhaps have a quick chat with a broker. Do keep in mind however, that if your mum suspects that servicing the debt will be difficult then it would be best to…[Read more]

Excellent – I hope it does stay around for a while.

OTP – Off the plan
SANF – Sleep at night factor
ACL – Australian Credit Licence
REA – Real Estate Agent

Hi Maxipes

Welcome to the forum.

This recent thread might be of assistance – /www.propertyinvesting.com/forums/getting-technical/legal-accounting/4335578

Cheers

Jamie

Hi Sam

Just in case things seem a little confusing because of all the names being thrown around, the general consensus is that the advantedge product (however it’s dressed up) is generally a good one and it should cost you nothing upfront or on an ongoing basis (at present).

Cheers

Jamie

Hi getrich

If you want to work out whether a property might be cashflow positive or negative you could have a play around with figures on the IP spreadsheet on my companies website – http://www.passgo.com.au/pass-go-investment-property-analysis-tool

Cheers

Jamie