Forum Replies Created
Hi Trent
Best to keep first property as interest only. There's no point paying down a deductible IP debt when you have a non deductible PPOR debt.
I'd also keep the second property as interest only too – but with an offset attached. Park all your spare cash in this offset and make an effort to place regular installments into the account. However, if you think you'll be tempted to simply make the minimum interest only repayments each month then principle and interest could be a better option for you.
How are the current loans structured?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Trent
Welcome aboard.
Generally you have IP loans set up as interest only and PPOR loans either as principle and interest or interest only with an offset.
Personally, I prefer interest only on all loans with an offset against one – the PPOR loan.
This article I wrote for API magazine explains the concept in more detail.
Hope that helps.
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
propertyboy wrote:How do I find out who the good managers are? I have always manged the place myself but cant anymore as I am moving,Could be worthwhile starting a new thread requesting PM recommendations in the area.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
The 1 week fee is usually triggered for each new tenancy placement.
I don't know what the going rate is for PM's in your part of the world – but focus more no quality over price because at the end of the day, a couple of % off is only going to be a few dollars a week savings.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
My wife self manages our local IPs and we've had no major issues so far.
I wouldn't inspect them too frequently – and it's not necessary if you've placed decent tenants. We usually inspect one month after the tenancy commences and then usually every 12 months thereafter.
Make sure you're clued up on the tenancy laws of your state and document everything – take photos when preparing your condition report so you have a reference for how you expect the property to look once the tenancy ends.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Yep, most reports that I've read recently have indicated that the Brisbane market is on the rise – the last two include the Herron Todd White month in review and the Domain housing report for June 2013.
I've got links to both reports here.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I'm not an accountant but I'd assume they'd be claimable expenses during the period the property is an IP.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Looks like the post is over 4 years old – it's only resurfaced now because of the spammer above your post.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I'd have an offer accepted subject to finance before ordering any upfront vals though – don't want to look too keen.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Four weeks letting fee is huge – I've never heard of such a high fee.
I don't what PM's charge in that part of the world but in Canberra it's normal to be paying around the 9% to 10% mark with a one week letting fee.
I think I pay about 8% for an interstate IP in Wagga.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Donna
The size of the complex sounds ok – it wouldn't be classed has high density.
How close are we talking in regards to the railway? Is it quite noisy?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Qlds007 wrote:In my experience difficult to get much out of the dead.
Lol – please tell me you haven't tried.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I had one of the majors randomly debit $500 from my credit card once – the description for the transaction was a 5 digit number. After hassling them for a while, they conceded that they had accidently charged me for another customers settlement fee related to a property purchase in Sydney….lucky I bothered to check my statements.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
95% loans are available for construction deals.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Yeah that seems more like it – at the end of the day, it's quality over cost. I'm happy to pay good money if I know the service is going to be top notch.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
If it's 90% complete you might be able to obtain a formal approval – it will come down to the valuation (which I'd have your broker order upfront if he/she can).
Just had a deal approved for a forum client purchasing an OTP property in Melbourne that's at about the same stage as yours in terms of completion.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
iccd wrote:can anyone recommend a good property lawyer who is good value rather than being overpriced? I have heard some lawyers charging $500 for conveyancing services, but I got charged more than double for the conveyancing.$500 – that sounds extremely cheap to me. Even at double it's still quite reasonable.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Rick
Deductibility is determined by purpose.
At present, only the $496k would be deductible.
If you increased the loan to $640k – what would the additional $144k be used for? If it's used for a PPOR purchase – then it wouldn't be deductible. If it was used for IP purposes, it would be.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Lalibella wrote:Mining. NSWOK, that explains it. They can be quite volatile – in both yield and property values.
Is the PM confident that they can secure another tenant if this one decides to walk?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I've never heard of such a big drop in rent. What's the vacancy rate like?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
