With buy-renovate-sell, you'll miss out on the 50% CGT concession if you sell within the first year. Also, if you turn over a few properties per year it could be viewed as business like activity.Also, the idea of buy-reno-sell sounds great – and it can be. But from experience, it's also a lot of hardwork. Especially when you're working full-time…[Read more]

Clappy wrote:
Based on what people have told me uni students don't have much of a disposable income.

I never had so much disposable income in my life! Living at home, mooching of the folks – free food, accomodation. Pity I spent all my cash on all the wrong things. I worked in a sports club pouring beers during my 4 years of uni – the pay was…[Read more]

Hi RobbieWhich state are you looking to purchase in?The federal Government's First Home Owner Grant (FHOG) provides elligible first home buyers with $7k.Differen't states and territories also provide various stamp duty concessions.Most concessions are targeted towards owner occupiers (rather than investors) so if you're looking to purchase an…[Read more]

It sounds like good news but the banks will recoup this in other ways – which might be via higher rates and app fees. Also, if you're LVR is above 80%. switching lenders may not be of much benefit – because you'll probably have to fork out for LMI again

Did you claim any first home buyer concessions for that house?

Hi BigdallaWith getting your own credit licence, I'm pretty sure your two years mentoring would have to be completed by June 2012 (therefore you would have to of started your mentoring program in June 2010). I could be wrong but I'm fairly sure this is the case. You could still be a credit rep of a licence holder though.While the comission splits…[Read more]

You'll need more than $15k to get the deal done – the lender will want to see that you've got funds for completion costs as well (stamp duty, legals, etc). Which lender is your other IP with?

Hi WicklA good broker that deals with investors will understand investement strategies and will structure your finances correctly to help build your portfolio.There are a few regular posters in this forum that offer these services. I'm not sure if any are based in Sydney. However, to quote someone else on the forum – these days location is not as…[Read more]

Hi WickiI take it Sue means a mortgage broker.CheersJamie

Hey NicoleWith the interest only loan. It gives you greater flexibility – basically, think of the offset as being the place where you park all the principle repayments. If you have a $100k loan, and place $10k in your offset, you're effectively paying interest on $90k ($100k loan minus the $10k in the offset). However, if you want to take that…[Read more]

Qlds007 wrote:
My god whats your name John Daly……CheersYours in Finance

Just call me Tiger…. without the 8 mistresses

Hi EzWhere are you buying? I'm about to exchange on an OTP apartment up north.I'm not an accountant but I'll have a crack at you questions.1. How are you paying for the deposit? If it's via finance (ie. a LOC that's been set up for investment purposes) than the interest payable should be tax deductable.2. Yep, you pay stamp duty within 12 months…[Read more]

Hi IntrigueMost of us get paid a comission from the lender – so it doesn't cost the client anything. That's how my business operates.Some brokers charge a fee for service.

Hi NicoleWelcome to the forum.If this property is going to turn into an investment property in the future, you should convert the loan to 'interest only' with an offset attached. If the loan is with CBA (you mentioned economiser) it will cost $300 to switch to 'interest only' and their offset (the MISA) will be free to set up. Note – the MISA is a…[Read more]

Hi IntrigueCBA can be pretty good with rural residential. The other day I had a client who required a 90% lend for two dwellings on the one 40 acre block – CBA were willing to look at it.How big is the block? From memory, I think CBA will go up to 40 hectares (or 100 acres I think that equates to). I understand your frustrations with your cu…[Read more]

If you'd like a good mortgage broker in Melbourne, Pete Tersteeg from Sage Lending is excellent.

Hi IntrigueWhich bank are you with?Most lenders will allow you to refinance up to 90% of the value of the property (some LMI is usually payable).If you're worried about structuring it right (which is a valid concern), why not use a decent broker who'll strucuture it for you correctly? That way you don't have to worry about the branchy stuffing up…[Read more]

Allowing pets. It's not easy for tenants with pets to find a place that will accomodate their fury friends. For that reason, allowing pets usually means a higher rent.

Scott No Mates wrote:
I can't remember which of the management theorists (Maslow, Hertzberg….) who came up with the 'hierarchy of needs' ie food, shelter, security, etc.

It was Maslow. Good point Scott.

Hi Steve$90k for furniture, landscaping and a wedding seems like a lot! I take it you have some other debts to pay off as well?Your $40k could be used as a deposit and purchasing costs on an IP. It just depends on how much you're looking at spending. Alternatively, if you have sufficient equity in your current home, you could look at accesing…[Read more]