Hi Boshie

It depends.

Do you have any other debt that's not tax deductible? Such as personal loans or credit card?

If so, focus on paying those down before you pay down the IP loan.

Cheers

Jamie

Don't worry – at least you're not from Canberra. We get overlooked by everyone and everything – unless you're into flowers (Floriade) or mass bogan gatherings (Summernats)

Cheers

Jamie

Hiya Tommy

It's a frustrating situation.

There's a couple of main things lenders look for – a deposit and the ability to service the liability.

You've got the deposit sorted – but being unemployed (presumably with no income coming in) then you're unable to demonstrate the ability to meet the liability. 

When you're back in the workforce, it…[Read more]

Hi fivemajix

Any reason why you can't tackle this on your own?

If you've got the time/energy then there's nothing that you can't accomplish in the world of property investing without forking out for a mentor.

Start with educating yourself. Read widely and learn about the various strategies that investors adopt.

Work out what your longer term…[Read more]

Hi Opee

Bank valuations are generally outsourced to independent valuers.

Even the ANZ model estimates (desktop valuations) are generated via Australian Property Monitors.

The desktop valuations look at a number of variables to come up with their estimate – such as comparable sales within the area.

If the higher desktop valuation provides you…[Read more]

Hi Doug

Your broker/banker should be able to whip up an answer for you in a couple of minutes.

The closing costs generally include stamp duty, legal and other smaller miscellaneous fees at settlement such as rates reimbursements, etc.

A lot will depend on the state that you're purchasing in, whether it's a PPOR or an IP and whether it's an…[Read more]

Arkad wrote:
Hi Everyone,

Can anyone please tell me if body corporate fees and rates are tax deductible for an investment property?
Also are property manager fees tax deductible?

Yes.

Arkad wrote:

Also on another note; does anyone recommend opening a trust to place investment properties under? Why or why not?

Why are you considering…[Read more]

APWPG wrote:
Hi Guys ,why buy negative gear when there is lot of positive properties around .

Future capital growth prospects, ability to add value, development or sub-divide potential….there's lots of reasons.

Not saying one strategy is better than the other  – but just because a property is negatively geared doesn't make it a bad…[Read more]

Just fixed.

Cheers

Jamie

Hi Sayan

Yes, I've been given the heads up that it will be going up this coming week.

Cheers

Jamie

Agree with the 3 year comment from Derek.

Any longer than 3 years seems to become a bit too long – and it's difficult to effectively plan this far out.

Personally, I can't see fixed rates going any lower. If you're considering locking in a fixed rate then I wouldn't ponder it for too much longer. Make sure you get your broker/banker to explain…[Read more]

ruffa37 wrote:
All loans are with NAB choice package at variable of 5.68 % with the discount. We went back to them, couple of weeks ago and would not lend without selling one of the properties. Refinancing at 4.99 % hopefully for positive gearing. IP#2 at 400 per week and current PPOR modest estimate of 430 per week.  IP# 1 is renting at 355 per…[Read more]

ruffa37 wrote:
Thanks a lot Shahin. I am looking at Citibank at the moment for their 85% LVR with no LMI for the new PPOR and possibly Homeside for the 2 IPs and the current PPOR soon to be IP. Any suggestions for lenders? Thanks again.

Did you pay LMI on these loans previously?

If so, an external refi to another lender will trigger another…[Read more]

DWolfe wrote:
This was the most random thing ever.

KRUDD thinks he's a hero double talking everyone, thank goodness we got rid of Crean, and Julia, keeps on keeping on.

Dear Governor General,

Are you able to fast forward to election?

Cheers

D

Yep, it was certainly a weird day here in Canberra.

When it was first announced, the odds for K…[Read more]

TheFinanceShop wrote:
Ok so your equity at a 95% lend (which is hard to achieve but let's park that for the time being) is approx $19k.

Ain't happening with Bankwest.

At 90% LVR it's an $11k cashout and that's not going to buy a whole lot right now.

Cheers

Jamie

ruffa37 wrote:
Hello Everyone,

Thank you all for the wealth of info that can be had from this forum, especially the generosity of forumers who have always helped out.  My question is about the best possible loan structure that can maximize tax deductibility for our situation. We are in the process of refinancing all our loans and we currently…[Read more]

The bank doesn't decide on the settlement date – it's agreed upon by the vendor and buyer in the contract.

If you want to delay it – ask you conveyancer to put this request to the vendor. I don't think it's an unreasonable request giving the timing.

Cheers

Jamie

Hi

No worries at all.

Yes, loan 1 and 2 are from the same bank.

They'll usually send out a valuer if the loan amount is going to be higher than 80% of the properties value. Otherwise they might go off  a desktop valuation.

Second split for the equity release means second loan. So if you looked at your online banking you'd have two loan…[Read more]

^^^^^
Yes! Excellent response – you might as well use up all three wishes and get a few recommendations for better genies.

Cheers

Jamie

Hi Avalonesa

Congrats on the first purchase.

Some banks will allow you to access equity up to 90% of the properties value (some will actually go up to 95% but they're not easy deals to get across the line).

So on that basis, if your property was valued at $290k – the bank may let you take your current borrowings up to $261k which is 90% of the…[Read more]