Hi LotsyYour figures look about right. However, you could get away with contributing less if you managed to take out a 95% loan. CheersJamie

MRW wrote:
Hi Jamie,That's pretty much how we've set things up (or are in the process of setting up) except PPoR is PI. Haven't been able to convince my wife that it's probably not the best way to go.

I personally think it's the ideal structure but it does require some discipline. I think it's important to get into the habit of making regular…[Read more]

paisley wrote:
An OptionI am considering purchasing a new third property (~900k) in the husband's name (higher income), using an IO loan (secured against 3rd property) and financing partial deposit, stamp duty and costs through LOC on Property 2 (assume the max LOC would be 600*.8-350=$130k). The third property would be an investment property…[Read more]

Want2invest wrote:
Thanks Richard!Do you know of any good brokers? If so could you please send me a PM?Thanks minichick!

Richard is an excellent broker – you should contact him directly. He'll sort it out for you.

jrws wrote:
What is capital gains tax? Could someone explain it in plain english please.Thanks,James.

Hi JamesWelcome to the forum.Here's some info on CGT – taken straight from the horses mouth – http://www.ato.gov.au/corporate/pathway.asp?pc=001/001/038

Hi ErwinIf there's tenants in the property you should probably give them the heads up that you're moving in Do you currently own the property you live in at present?

Land tax may be an applicable holding cost. I just opened up a land tax invoice for an IP in Canberra – ouch

Hi MarkPaying into an offset account on an IO loan is just like paying down the principle on a P&I loan. One of the big differences however is the flexibility the IO loan with an offset account offers. Here's a real life example. Across my current portfolio, all loans are IO. On my PPOR I have an IO loan with an offset attached. I currently place…[Read more]

Hi JonesiWelcome aboard. It's always good to see another Canberran on the forum CheersJamie

Agree 100%. Sort it out correctly from the start and make sure you have someone that's looking after your interests.

Thanks for the report Ajay. Some food for thought. Best of luck with your purchase – wherever you decide.

JacM wrote:
I'd suggest starting your hunt for a PM by ringing around to ask to speak to someone in the property management department of each respective realestate agency and see which ones actually ring you back.  It won't be many, despite you telling them you're looking to recruit a PM for your property.  That will help reduce your list of c…[Read more]

Hi 250kHmmm…..sounds like the bank is being a little difficult. I had a client in a similar situation recently. He went to his lender to access some equity and they pretty much told him that unless he was going to finance the next property through them, they weren't interested in valuing his current property. Depending on your lender you may be…[Read more]

Hi MicrochipWith question 1. Your answer is option 1.With question 2. I'm a tad confused about what's actually being asked. CheersJamie

No worries at all. I was semi joking about Gagebrook though. I've been told it's rough as guts – best to use your own due dilligence there! CheersJamie

Priz7780 wrote:
Hi all,I'm glad I found this website This is helping me a lot. Ryan I do not mind at all. So basically what you are all saying is that I can switch my loan to an interest only loan even though I will still be living there for a while until we find the right place and by the time that settles and we build etc…?CheersPri

Yes.…[Read more]

larrytheinvestor wrote:
Hey thanks for the replies. Can i get a real life example of the sort of price-range you work in, amount you spend on renovations how much rent is, how much the loan costs you, how much you sell for? Sort of along the lines of: buy property for $300 000, rent for $_ _ _, renovations cost $_ _ _, rent after renovations $_…[Read more]

fWord wrote:
[Thanks. So I'm guessing that after the repair is done, you similarly request photos of the finished job from the agent? I'd assume that regardless of what job was done at that time, payment would already be made to the tradie. I just have concerns about repairs and payment being made sight unseen. Surely there are horror stories of…[Read more]

Intrigue wrote:
It appeared there was some confusion as the head office wanted to know why I was not just doing a new loan once I found the property.. I stood firm, told them what I wanted and it was done.

Good stuff. Just shows their lack of understanding of how to structure finances for investors. It's a good thing you knew what you were do…[Read more]

Hi DoggityWith the LVR that low you'll be fine.CheersJamie