No – it doesn't normally happen.

Cheers

Jamie

I've got policies with Real and One Path – no complaints with either so far.

Cheers

Jamie

Yep – that’s an issue to. A few cheap sales can devalue yours. You’ll also be competing for tenants once the development is complete.

Cheers

Jamie

Derek's spot on with his points.

The two biggest issues are the finance (you might be able to get approval today based on your current circumstances but who knows what the world will look in 2014 – your circumstances may change, bank lending policy might be different, etc).

The valuations not stacking up is another drama – particularly if you require a high LVR to get the deal done.

Cheers

Jamie

Regardless if it's a PPOR or an IP – interest only with offset will provide maximum flexibility in the future and achieve the same outcome of a P&I loan. If you're a lousy saver, have no other deductible debt and don't plan on ever purchasing a PPOR in the future than P&I might be suitable for you (but this is a rare occurrence).

Cheers

Jamie

Hi Sundance

Do you have a PPOR debt or any other non-deductible debt such as a personal loan, credit card, etc? If so, knock that on the head first before placing funds into the IP offset. If you do have a PPOR loan – forget about using the IP offset and set up an offset against the PPOR instead.

Cheers

Jamie

Hi James

I’m not an accountant but utilising an offset account in the manner described shouldn’t cause any tax dramas.

Cheers

Jamie

Hi Dean

What are comparable properties selling for in the area?

What would make it a good investment in the future?

My only comment with properties that have already been renovated is that there's little (if any) scope to add value and you're usually making someone else money.

You mention turning it into an IP down the track – it's important to set your loan up correctly from the start so you can maximise future tax benefits.

Cheers

Jamie

Put the lap-top away!

It's true though – location isn't an issue. I was in the same boat as Richard a couple of months ago – writing loans while in Malaysia for clients in WA, VIC and NSW while my office is based in the ACT.

This morning I submitted two deals for a forum client living/working in Afgahnistan.

The word has changed and technology really does make things easier.

Cheers

Jamie

You can ask the lender/broker to request a full valuation instead (that's assuming your actually lodging an application). Depending on the lender, they might allow the broker/banker order the valuation up-front. If neither of these options are available you could always pay for a full valuation (however, this won't be accepted by the lender and will be for your own info).

Why? Valuations cost banks money – if you've got 20% equity in the purchase then there's little risk for them. I wouldn't say lending criteria is overly tight at present – banks are wanting to do business….albeit with the right clients.

Cheers

Jamie