I agree with Ryan. Properties that are highly negatively geared limit your borrowing capacity. At a quick glance, it looks like this property will be negatively geared to the tune of $300 per week. Can you afford this? Do you want to purchase more property in the future? Do you think it will appreciate in value by more than $300 per week?Don't…[Read more]

Hi EvernatWelcome to the forum.If paying off your PPOR is the goal – but you also want to invest in property, then you're going to have to find CF+ or neutral properties at best. A negatively geared portfolio is going to drain funds that can could be used to pay down your PPOR debt.You're right – they are probably harder to find now, but they…[Read more]

Hi Tja,It sounds like your loans are not crossed.Investors generally opt for interest only loans because the "interest" component is tax deductable. With the current principle and interest loan you have on loan 1, only the "interest" you pay can be claimed as a tax deduction – not the "principle."I'd have all the loans set up as interest only,…[Read more]

Hi Mark,Congrats on the purchase! I was going to give you a buzz to see how it went.Feel free to give me a call on the mobile to discuss the stamp duty scenerio – I was just about to write a response but there's a fair bit to cover. Cheers,Jamie

Qlds007 wrote:
Heh JamieWhat is wrong with Uzbekistan ? Doing a couple of deals there at the moment. Well at least the client said he was buying there so i have ordered the valuation !!!!

I just see better value in the Kyrgyzstan market at the moment I noticed one of the key spamming offenders has changed their username and given themselves a…[Read more]

Both get my votes – so sick of seeing invites to invest in Uzbekistan and random spam posts about the US property market.

Hi Flare,Yep, you can certainly have two loans with the same lender that aren't crossed collaterised.If you have $40k in your offset, you could use that for your next IP purchase instead of taking out a LOC. Depending of course on the price of the IP you're looking at.In any case, have a chat with a good broker that works with investors and…[Read more]

Hi NathanIt's an exciting time and I wish you all the best with reaching your goals.Have you considered accessing some of the equity in your partners home? You could refinance that loan and use the proceeds towards renovations on your home.Once the renos are finished on your home, have it revalued and access the equity in it- you can then go…[Read more]

Which lender are you with?In the most simplistic sense – it's a two stage process.1. Depending on the lender, you could probably "top-up" your loan to 90% of the properties value.2. You would then use the "top-up" as a deposit for your next property. You could either stick with your current lender or go elsewhere. Depends on who offers the best…[Read more]

Small world

Hi Intrigue,Personally, I would calm down.You're paying for someone elses renovations. How much are similar (non-renovated properties) selling for in the area? If it has already been renovated, not only will you be paying a premium, you're also buying a property that has little scope for improvement. Wouldn't you prefer to buy something you can…[Read more]

mark.p1955 wrote:
my current loan is at 6.8% and if this can be beaten and fees eliminated, I’m thinking SOLD!

It wouldn't be too hard to beat this – as for the $500 refund, tread with caution as Terry and Banker have mentioned.

mark.p1955 wrote:
my current loan is at 6.8% and if this can be beaten and fees eliminated, I’m thinking SOLD!

It wouldn't be too hard to beat this – as for the $500 refund, tread with caution as Terry and Banker have mentioned.

Terryw wrote:
I think it might be better to get a high LVR loan initially and then put the spare cash in the offset account. This will result in the same interest, (but will cost you LMI). as values grow LMI forked out will become insignificant. It will also keep more cash available for emergencies.

Agree with Terry – also makes it easier to…[Read more]

One thing I should have added is that if you decide to self-manage, make sure the landlord policy you have in place will allow you to do so (some will only cover properties that are being professionally managed).Jamie

Hi Tony,Self managing is not difficult (when things are going right). You'll need to get up to speed with the tenancy laws in your state. The form you're refering to is a tenancy agreement.CheersJamie

Adelaide Bank will look at a 95% + LMI deal without having an existing relationship – for PPOR only though.

Hi JacYou can still get 95% loans. You'll probably need to have an existing relationship with the lender offering them though. Which banks are you a customer of?That said though, 95% loans aren't easy to get approved. Personally, I'd be inclined to go for the two IPs with the 10% deposit on each.Cheers,Jamie

Hi Mark and welcome to the forum

MRW wrote:
I know these may be impossible question to answer, but I'll ask anyway 1 – How much of a set back will this be to my plans to get into IPs?     I'm hoping not too much as my raise should cover most of the increase in mortgage?      Financially we're doing OK anyway.

 A $700k PPOR could end up being…[Read more]

Hi Jac,I'm in favour of using LMI for the simple reason that you can buy more with less.Here's a simplistic scenario.1. If you were looking to purchase a property for $400k, and wanted to avoid paying LMI, you'd need to bring about $100k to the deal ($80k deposit, $15k stamp duty, $1k legal, etc). Just say that this property appreciates by 10% in…[Read more]