[Jamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069]

October 23, 2020 - 11:47 am

psrproperty wrote:

Are Equity Release and Refinance the same thing?

They’re two different things.

Having said that – a refinance and equity release often happen at the same time.

Cheers

Jamie

Jamie Moore | Pass Go Home Loans Pty Ltd
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May 19, 2019 - 8:20 pm

As mentioned above – destructibility depends on purpose.

Borrowing against an investment property to pay yourself back money that you’ve previously contributed wouldn’t justify a deductible expense.

I’m not an accountant though so please seek pro advice.

Cheers

Jamie

Jamie Moore | Pass Go Home Loans Pty Ltd
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May 19, 2019 - 8:15 pm

Property Buyer wrote:

Generally, how are the financial institutions currently treating requests to increase existing lines of credit ? For instance, if I wanted to increase these to 75% LVR, how should I expect them to react to such a request ?

All depends on the lenders policy and your borrowing capacity.

Some lender are still ok with cashouts up to 80% for investment purposes – it generally involves a full application process.

Cheers

Jamie

Jamie Moore | Pass Go Home Loans Pty Ltd
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May 19, 2019 - 8:12 pm

David Phillips wrote:

I earn $200000/pa, no other debt, and my bank has trouble lending me money to build a house at my rural place in Coffs Harbour NSW. I still owe $300k on this.

Hi Dave

What’s the issue from the banks perspective? Is it lack of a deposit?

What size block are you looking to build on?

Which lender have you approached so far?

Cheers

Jamie

Jamie Moore | Pass Go Home Loans Pty Ltd
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May 19, 2019 - 8:07 pm

Kade wrote:

From my research and reading Steve’s books I believe this to be the wrong advice and was wondering if anyone could comment this or possibly point me in the direction of a good accountant and/or broker that specialise in property.

Hi there

What benefits do you believe you’ll obtain by investing via a different entity?

Cheers

Jamie

Jamie Moore | Pass Go Home Loans Pty Ltd
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September 29, 2018 - 2:45 pm

Bec wrote:

From what I’ve learned this seems like a bad idea and more likely motivated by commissions associated with bundling everything together.

Hi there

Best to avoid crossing – it can cause a real mess.

Having said that – you can have all loans with the one lender and keep them uncrossed. It’s quite easy to do.

Let your broker know if you’re unhappy with the structure he/she has outlined. The $1k fee seems a bit rich if they’re providing you with poor structure advice.

Cheers

Jamie

Jamie Moore | Pass Go Home Loans Pty Ltd
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September 19, 2018 - 11:14 am

Hi there

This is an area I’ve started to take a closer look at. Some clients are starting to go down this path and my wife runs an airbnb management company so I’ve taken more of an interest in it.

1. Is income solid?
Like any investment – some will do better than others. If the property is in a popular tourist destination that isn’t dependent on seasons then the income can be reasonably consistent.

2.What is your experience of property managers, any recommendations
I can’t speak for the Gold Coast but I’m sure there’d be some airbnb property managers – it’s the perfect location for that service. Just check that there’s no hidden/extra fees – ideally you want to just pay the one fixed percentage cost. My wife runs a popular airbnb management company in Noosa – their website has some good info that might help.

3. What are council implications
I’m not sure about the Gold Coast – it can vary from council to council. Some will charge an additional levy with rates.

4. Recommendations re suburb
I’d look for something in close proximity to main tourist spots. Location is always important. Have a look at airbnb and see where the most popular properties are within the Gold Coast – get a feel for the type of properties that are in high demand.

5. Anything else you wish to offer
Do lots of research before committing to a purchase. At the very least – you want to know that the property will provide a reasonable return if you have to revert to plan B and place it on the normal long-term rental market. There’s also some implications with obtaining finance which I touched on via this blog post

Hope this helps :-)

Cheers

Jamie

• This reply was modified 5 years, 7 months ago by  Jamie Moore.

Jamie Moore | Pass Go Home Loans Pty Ltd
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July 24, 2018 - 2:07 pm

Agree with Richard – generally around the 7% mark

Having said that – there are other factors involved when taking into account max borrowing for investors. Some lenders add back negative gearing, some take a higher percentage of rental income, some cap the yield….the list goes on.

Cheers

Jamie

Jamie Moore | Pass Go Home Loans Pty Ltd
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July 5, 2018 - 12:31 pm

lexd wrote:

Hi, I am planning to move into my investment property and turn that into my primary residence (I am currently living with my family).

Hit your current lender up for a lower rate

Most lenders differentiate between owner occ and investment.

With some lenders it’s a straight forward process – with others it can be more difficult.

Cheers

Jamie

Jamie Moore | Pass Go Home Loans Pty Ltd
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April 23, 2018 - 9:31 am

Barlow wrote:

Met up with a few company’s that seem more keen to selll me house and land rather than help set me up.

Avoid the one stop shops that source and finance property.

Most are real estate agents in disguise – making massive commissions from overpriced off the plan properties.

Cheers

Jamie

Jamie Moore | Pass Go Home Loans Pty Ltd
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April 23, 2018 - 9:29 am

Hi there

Any particular reason you’re narrowing it down to only NSW?

Cheers

Jamie

Jamie Moore | Pass Go Home Loans Pty Ltd
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April 23, 2018 - 9:28 am

Sounds like you’ve got the correct structure in mind.

The loans don’t have to be via two different lenders – you can have the two loans (equity release and IP) with the one lender and still keep the loans uncrossed. The benefit here is that you’ll be able to negotiate a better rate discount due to the higher aggregate borrowings. If you’re on a pro pack you’ll only pay the one annual fee too.

What are your longer term plans? If you’re considering purchasing another IP down the track it might be worthwhile releasing additional equity now rather than later.

Cheers

Jamie

Jamie Moore | Pass Go Home Loans Pty Ltd
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April 23, 2018 - 9:25 am

Keep the house uncluttered and well presented for when the valuer arrives.

If you’ve got strong, recent, comparable sales – have those available to show the valuer.

In terms of best bang for your buck – usually painting/flooring is the cheapest value add.

Cheers

Jamie

Jamie Moore | Pass Go Home Loans Pty Ltd
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January 12, 2018 - 4:07 pm

You’ve got a couple of options.

As above – you could engage an REA and get their opinion.

Otherwise – you could get a valuation done now and another done after the work is complete.

Cheers

Jamie

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January 12, 2018 - 4:03 pm

Hiya

You need to a) save a deposit and b) show evidence to a lender that you can service the loan you’re applying for.

Cheers

Jamie

Jamie Moore | Pass Go Home Loans Pty Ltd
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January 12, 2018 - 4:02 pm

Stuart wrote:

Or plan was to convert it into a investment property of which we think 5 – 520 / week would be a fair rent. We were wondering what the best way to move forward would be. And finally start my property investing dream.

Hi Stuart

Which suburb is the property in? I have one in Downer that’s near a future light rail stop. The recent growth in the area has been quite good!

Whether another purchase is doable depends on your borrowing capacity. On the surface – it looks like you have enough equity to support a second purchase so it will just come down to your income/liability/expenses situation.

All in all – another purchase might be doable. You just need to a) find a decent broker to run the numbers for you and b) structure your loans correctly.

Cheers

Jamie

Jamie Moore | Pass Go Home Loans Pty Ltd
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January 12, 2018 - 3:58 pm

I’d only ever use a property manager for looking after my IPs – I don’t have the time/patience/expertise to deal with them.

Having said that – finding a good property manager isn’t always easy :-( I’ve had some shockers, some great ones and everything in between.

Cheers

Jamie

Jamie Moore | Pass Go Home Loans Pty Ltd
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January 12, 2018 - 3:56 pm

Hi Chris

Realistically – you’ll need to bolster that income. Whilst technically it’s probably possible to purchase something (providing you live rent free, have no debts, minimum living expenses and a deposit) – that property will prob be in an undesirable area with little prospects for growth.

I’d focus on the income side of things before property – and that doesn’t mean you have to run out and get a second job and work like crazy (that is an option though). Self employment can be very rewarding for those with the right skills/mindset. Only minor downside is that banks generally require 2 years of s/e history before considering a loan.

Cheers

Jamie

Jamie Moore | Pass Go Home Loans Pty Ltd
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January 12, 2018 - 3:49 pm

Anthony Zanatta wrote:

a real estate agent has recommended someone from Loan Market as the go-to guys.

Chance are that REA is affiliated with the company they recommended.

Personally – I like to minimise conflicts of interest so I’d appoint my own MB rather than go with the one the REA is recommending.

Cheers

Jamie

Jamie Moore | Pass Go Home Loans Pty Ltd
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January 12, 2018 - 3:47 pm

Agree with Richard – using an appraisal from an REA isn’t that uncommon.

All comes down to the lender/scenario.

Cheers

Jamie

Jamie Moore | Pass Go Home Loans Pty Ltd
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