TheFinanceShop wrote:

Arguably I think you should buy properties unseen when you already have a few under your belt – otherwise pay a few hundred and inspect the property.

Yeah I agree with that. It makes sense to fork out a few hundred on a flight to scope out a purchase that's in the hundreds of thousands.

Cheers

Jamie

Hi Mizfit

It helps a lot if you've got someone on the ground to inspect the property in person. I've got clients that use local property managers or buyers agents.

Also get a building and pest inspection carried out. See if you can call the inspectors during or just after the inspection to ask questions.

It's easy enough to do all of the due…[Read more]

Hi Jekjoy

Why not do both?

I've helped plenty of first home buyers purchase their first home – and then tap into its equity to fund the deposit/costs on an investment property.

It works really well when the home that's purchased can be renovated for a quick equity gain. We then get it revalued – access the equity and organise the IP loan .…[Read more]

It's a unique situation Wilko. On the one hand it's good news – your property might be worth more than you thought On the other hand, no one wants to fork out more than they should to the govt.

I'd follow Terry's advice and put together a letter with some supporting evidence such as the sale contract and other comparative sales from the RP data…[Read more]

Hi Meggy

Welcome aboard

Without knowing too much about your situation it's impossible to advise on an ideal structure for your circumstances.

However, as a generalisation – having a trust set up for each property does sound a little like overkill.

Cheers

Jamie

investec wrote:
i just get confused a bit …..check it out… does it matter really that your IP is negatively geared or has zero gearing (ie rent equals loan repayments) as the tenant (other people 's money) is paying the loan anyways…. and even at the end if hold for lets say 10years and then sell even at the same price as you bought… you…[Read more]

Hi Scott

9 years is a very long time – and it's hard to accurately plan ahead.

DHA leases can seem like a good idea for those starting out and worried about potential rental vacancies. However, a long lease like this can be very prohibitive for the owner. The biggest issue is that if you need to sell up – your restricting your pool of buyers…[Read more]

I like Margaret Lomas as an investor. I think her books are worth a read and I think she's making a genuine effort to regulate the property advisor industry. I can't speak on behalf of Destiny (I don't know what they offer) but I personally believe it's best to keep some functions of the property purchasing process separated to avoid any potential…[Read more]

Hi Joe

Welcome aboard.

On the surface your borrowing capacity and available equity looks fine. With the right structure you could potentially purchase multiple IPs.

Whether you should or not depends on your long term plans and what you're aiming to achieve. Your tolerance to risk also plays a part.

Cheers

Jamie

Hi Tom

The good brokers do well – the average/mediocre brokers will struggle.

It's a tough industry to crack and you really need to devote all of your time to it.

Obtaining the industry qualifications isn't that difficult – building a successful business is the hard part but very rewarding for those that do.

Cheers

Jamie

Hi Dan

You need to have some sort of formal lease agreement in place in order to use the IP rent as income. You could get by on using a rental appraisal from a local property manager –  but it would need to be appraised as a normal rental and not a share house. 

Having you on the application is likely to reduce the overall borrowing capacity as…[Read more]

Also consider your longer term goals. If you're looking to purchase multiples properties in the future – you might want to spread those funds further than the first IP.

Cheers

Jamie

Hi Kane

Welcome to the forum.

Firstly, I wouldn't use tax reduction as the main driver for buying an investment property. Reducing your tax bill means spending a $1 to get back 40 cents. The tax incentives with property investing are great – but should only been as a bonus and not the main motivator.

Instead, look for a property that fits into…[Read more]

It doesn't need to be too complicated. Have a chat with a broker about general loan structuring and borrowing capacity and then go from there.

Cheers

Jamie

A mortgage broker would be a good start. Most of don't charge a fee for service – we get paid a commission from the bank instead.

If you're comfortable with using phone/email than you can choose your broker from anywhere in the country.

An accountant/solicitor will advise on the entity type to purchase in.

Cheers

Jamie

Scott No Mates wrote:

Daveybear wrote:
Yeah i am gettin tired of them too. Do you read books then?

No I wait for the movie.

lol – sounds riveting. An investment property epic – "in search of the elusive property hot spot."

Cheers

Jamie

Hi PCF

Welcome aboard.

With loan structuring you want to ensure that your properties aren't cross collaterised (something that banks love to do) and you select the right lenders at the right time as you continue to accumulate investments so you don't burn your borrowing capacity too soon.

Without sounding biased – you should consult with a…[Read more]

Hi Nat

Whether you sell or keep the property comes down to the costs of holding relative to achievable growth.

For instance, if it's costing $5k a year to keep – you'd want to be reasonably confident that you'll recoup this via capital growth over the long term.

Look at current market conditions, future infrastructure plans and any other key…[Read more]

Hi Seb

You can get vacancy rate data from any of the national IP magazines. Most of it is featured in the back of the mags.

Cheers

Jamie

Hi Richo

It's a good question. I know it's a mundane response but advice on retrospectively claiming costs against income is one that I'd put to your accountant. If you need a recommendation for one in you're area than it wouldn't hurt starting a new post.

Cheers

Jamie