I'd pop the funds in an offset linked to your PPOR for the time being – and use it later on once you've worked out what you'd like to do.

On a side note – it sounds like your bank/broker has crossed up your loans which is a bugger. It's not the end of the world – but the structure could be set up better.

Cheers

Jamie

Hi Linda

If buying a townhouse, it's best (in my opinion anyway) to buy into smaller developments. That way, you're not competing with other owners in the complex when selling/renting when the time comes (often you'll see multiple properties from within the same large complexes for sale or rent at the same time). Also, if a couple of properties…[Read more]

Hi Matt

I don't know of any personally in Townsville. It can be tough finding specialists in smaller cities/towns – you might need to look interstate and deal via email/phone if you have no luck in your neck of the woods.

Cheers

Jamie

Hiya

It's a tough one because you risk losing credibility if you make it known that you're placing multiple offers. If I was the vendor and it came down to two purchasers – I wouldn't accept an offer from the person who's openly placing offers everywhere.

However, at the same time I can see your point – and you really don't want to have to wait…[Read more]

No probs – I meant a broker rather than a fin planner.

Cheers

Jamie

Hi Linda

How many townhouses are in the complex?

Those BC fees are high – but not uncommon in that part of the world as Catalyst mentioned.

Cheers

Jamie

Hiya Mr dude guy

Nice user name and welcome aboard

Buying an IP or a PPOR first up can be as much as a lifestyle choice and a financial one.

Personally – I've always preferred owning a PPOR and used my first to leverage into property investing. It's also something a fair few of my clients, particularly younger ones, have done.

Some have…[Read more]

BomberRoui wrote:
Hi Jamie,

Thanks for your reply.

1.  We don't own a property.
2.  We are looking to purchase a PPOR valued at 400k, we would put in a 20% deposit.
3.  We are not currently with a lender have just spoken to Bendigo Bank about their Home Equity Loan.

The reason this product may have been suggested to us is that we would like…[Read more]

Hi Fay 

Welcome aboard.

While I don't know your situation or the reason you found yourself with defaults – I generally don't like the idea of using family guarantees to get around bad credit history issues. 

Depending on the size/nature of the defaults you might still be able to get a loan but you'll need to contribute at least a 20% deposit as…[Read more]

Hi there

Just so I have a better understanding of what you're aiming to do.

1. What is your current PPOR worth?

2. Are you looking to purchase a $400k IP?

3. Which lender are you currently with?

Cheers

Jamie

smartcube wrote:
thanks all.really appreciated.
so does this mean that its smart to tale 90% loan and use the funds in offset account this will reduce the interest paid and iam sure will change this into ip in year or 2 so i can claim the LMI on tax?

Ta,
Smartcube

Yep – it can be quite a clever strategy.

Cheers

Jamie

I've been told that Kevin Zani from BEAUMARIS BUSINESS SOLUTIONS is pretty good.

Cheers

Jamie

Hi Dan

If you're struggling to find a decent one locally then why not look interstate? Like most professionals – you can deal with them remotely via phone/email.

I haven't had a face to face meeting with my accountant for a couple of years now.

Cheers

Jamie

Ahhh – the penny just dropped

I think you might be one of my clients

Cheers

Jamie

Hi there

Property is a long term asset – you've only had it for just over a year so it's unrealistic to expect too much growth from it in a short period.

I don't know the area personally so can't comment on whether there could be some growth in the future – but I think it's just a bit too short of a timeframe to start thinking about selling…[Read more]

Tracymburling wrote:
Hi Jaime,

i didn't realise that. Thank you ever so much for the advice. I'll be sure to take it on board. I was under the impression though that I should only borrow up to 80% of the purchase price? I presumed the other 20% had to come from our savings?

kind regards

tracy

Hiya

You can borrow the 20% deposit as well as…[Read more]

Hiya

Do you have a PM managing this property? If so – let them work it all out for you.

I don't know what your rights are – but morally, I wouldn't be getting in the way. If they genuinely feel threatened then let them go and get another tenant.

All in all – I wouldn't worry too much about it. Let your PM do the worrying – it's what you pay…[Read more]

Yep – CGT is triggered once you sell.

Cheers

Jamie

Hiya

It's hard to provide a detailed response without knowing the finer details of your situation.

If there's a chance that the property may become an IP down the track then it might be best to pay a bit of LMI and borrow more from the bank. That way, when it becomes an IP you'll have a larger loan to claim on and you might also be able to claim…[Read more]

Hi Tracy

Welcome aboard

How much to spend on your first IP comes down to your borrowing capacity, tolerance to risk and overall strategy.

As a side note, I'd avoid using your cash savings to fund the deposit/costs on your IP purchase. If you borrowed those funds against your PPOR – they would be tax deductible. Just make sure whoever sets up…[Read more]