Hi Pagey

What do you mean by a shack? Can you provide more info on the property?

Not sure if I have the same confidence as above – the words shack and 95% LVR don't look like they belong together.

Cheers

Jamie

Yep – I'm with Tom. Could be state specific terminology – in Canberra it's body corporate and across the boarder in NSW it's strata.

Cheers

Jamie

Thanks for sharing – it's a good read.

Cheers

Jamie

Hi again

Whilst the concessions for new builds are attractive – they can be pointless if you're paying well above the concession for the property.

You mention that you've already read bad reports about the builder – that doesn't sound good.

How much will an established property in the same area cost you?

Cheers

Jamie

Scott No Mates wrote:

Jamie, it has been years since you had to buy leases from the Newsagent in NSW, only downloadable or direct from fairtrading.nsw.gov.au website.

lol – that explains why my wife is in charge of managing them. I don't even know where to get a lease from.

Cheers

Jamie

Hi Steve

Which state is it for?

In ACT and NSW you can grab them from your local newsagent – and I think they can also be downloaded.

It sounds like you're referring to the condition report which is usually at the back of the lease agreement.

Cheers

Jamie

Hi Rich

Why not just get Richard to suss it out for you instead of running around trying to work out which lender will do the deal? 

Cheers

Jamie

Sounds like S/E to me.

Cheers

Jamie

Hi there

I can't comment on the company – I have no idea who they are.

With new properties, there's often a large mark up – similar to buying a new car over an older one that's depreciated and can be purchased for less.

Growth in new properties is generally slower and valuations can come back lower than purchase price.

Just make sure you…[Read more]

Lenders see them as boarding houses and aren't huge fans of them so expect a low LVR. I doubt insurance companies will like them either – and I'm not sure who would manage it unless the fees they receive justify the additional effort.

Cheers

Jamie

Yes it should be deductible given the purpose.

Ask your lender to provide a rate discount on your existing loan too given your overall borrowings is increasing.

Cheers

Jamie

Hi Dave

Which state are you in? If you do go down this path then I'd be listening to Terry's post about seeking legal advice. If you happen to be in Sydney, I'd be contacting him.

Cheers

Jamie

+1 for Darryl. Solid contributor to the forum.

Cheers

Jamie

Hiya Spearsy

I hope you're well – and good to see you posting on the forum

Tried giving you a buzz  to discuss this in more detail. Pls give me call or shoot me an email when you get a moment.

Cheers

Jamie

It will only hurt your servicing if it's taking money out of your pocket (ie. losing money).

If it's a profitable business – you may be able to use the income it generates to improve your borrowing capacity. You usually have to have a couple of years financials behind you to demonstrate this.

Cheers

Jamie

Hi Dave

What's the benefit for you?

What's the buyers reason for wanting a 12 month settlement period? Is it because they can't complete the purchase now and require more time to come up with the funds? Or are they looking to flip the property after they've completed the renos?

What is they don't end up settling and the work the renos they've…[Read more]

Ideally that equity release should have been set up separately so in an event like this you can clearly define what proportion of the debt is deductible and which isn't. You'll need to talk with an accountant about the possibly of apportioning it.

Cheers

Jamie

Hi again

When you say you used equity from your other investment properties – did you set this equity release up as a separate loan?

Cheers

Jamie

Yeah it's possible – but I dare say that a number of agents suggest that they can get an ambitious price for your property in order to secure the listing – and then suggest that it's overpriced later on and it needs to come down.

Cheers

Jamie

Hiya Chris

Any loans that were used to finance the IP that you now live in won't be deductible.

Cheers

Jamie