Hi Phil,

If something appears too good to be true it usually is.

You can get some CF+ properties in that price bracket but that would usually restrict you to regional towns which can have their own issues (but aren’t always a bad investment) or studio/student apartments the size of a shoe box which is a can of worms in itself.

What are the…[Read more]

Have a look at the suburb profile report as a guide –> http://www.myrp.com.au/free_suburb_profile_report/qld/port_douglas/4877 as it shows median trends over the years and can be a good gauge on where the town is at in the property cycle.

To help with things stop putting extra into redraw and have an offset account instead. If you’re paying principal and interest turn the loan into interest only.

I won’t comment on the tax specifics but if you redraw money to go towards IP purchasing costs it gets very messy – get tax advice on this. End goal may be to leave the $121k in there…[Read more]

There is a $15k FHOG for new homes in NSW. As of 1st Jan 2016 it will be reduced to $10k.
http://www.osr.nsw.gov.au/grants/fhog

NCC, when you say you want to leverage the FHOG towards your purchase are you meaning you want it to form part of your deposit or you’re just wanting to take advantage of it?

That insurance is cheap or in par for FNQ. I’m paying about $2600 for my PPOR at Cairns northern beaches.

If the insurance review ever happens it may get cheaper but I’m not holding my breath for it.

North Queensland is starting to get a bit of focus of late (more so Cairns and Townsville) again so it may spill on to Port Douglas but as far as…[Read more]

Being a tourist destination can you holiday let it through a company that specialises in that arrangement? Would there be a demand for your property?

It may not necessarily be money down the drain if you’re getting capital growth with the property.

How much is the insurance on the place?

They’re eager though to lend if there’s more security and I actually have a property in mind.

Just make sure they don’t cross collateralise you properties.

80% is ideal but even 90% would be better and more achievable than a 95% lend.

If the money has been sitting in your account untouched for a period of at least 3 months some banks will accept this as genuine savings.

A guide to closing costs is 3-4% of the purchase price.

Eg
Property Price: $300,000
Deposit (5%): $15,000
Closing costs:…

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Do the other properties comparable to yours in the area have dishwashers? May not get more rent but may give your place a slight advantage above others. So making it more rentable. What’s the rental market like in your area?

*touch wood* I have or have put dishwashers in all my rentals and haven’t had an issue. I can’t imagine a tenant BYO…[Read more]

It’s a tricky one with a few things not working in your favour. There’s some non mainstream lenders that *may* look at this but your interest rate wouldn’t be as competitive as you may like it to be. Are you the only one applying for the loan or is there a second applicant?

Ahhh, Sunshine Coast…. For some reason I was thinking inner-ish Brisbane. Sunny coast, or parts of, is starting to get a bit of attention which is good – seems to be entering the recovery period now.

Good that you have a bit of time to play with and firm up a bit of a plan. I find that setting your end goal and working back from there works. So…[Read more]

Breathing is good! I think even I held my breath while reading your post!

I’m assuming you’ve had some good CG while you’ve had your IP too? (As an aside, do you have a depreciation schedule for your IP? If not, worth getting one to help with tax).

There’s two schools of thought on rent vs buy. It can be seen as dead money, but it can also be…[Read more]

Hi MissyMiner, first of all, breathe! You’re doing well to have essentially what is an unencumbered IP. Defined goals is a good thing and looks like that is a little muddy for you at the moment. Are you happy renting? Did you want a PPOR or buy IP’s or both? What sort of time frame are you wanting to work with – ie in how many years do you want to…[Read more]

Hi Ruk – some figures would help such as you income, what sort of IP, proposed rental of IP? Are you heavily rent reliant? When you say assets is that with no mortgage attached or are they leveraged?

Have you approached a bank and they said ‘no’ or have you spoken with a broker?

Pre-approval is an indication that the bank *may* lend you money and roughly how much. But not really worth the paper it’s printed on. The loan can still be declined after a pre-approval such as the valuation not stacking up.

A bit of a late reply from me too sorry – still figuring out how to use this forum ie find out when a thread has been updated. One cool thing I did discover the other day is you can tag users in your posts and, at least for me, when that happened I got an email telling me someone had mentioned me. Anyway, slightly OT….

I won’t comment on your…[Read more]

What I did a few years ago when I was looking for a couple of people to add to my team (as I had to ‘fire’ a couple, but that’s another story!) was mainly based around the forums and I just read through their posts to get a feel for them then did a name search to see what other people had commented on. I also called up a few locals for a chat…[Read more]

Not a problem. Sounds like you have a plan, which is good. As Jamie mentioned though, those repayments don’t look quite right. For a P&I repayment on $375k it would roughly be around $1990p/m and IO would be around $1531p/m so a bit of a difference. This may help with doing the feasibility of potential investments you look at, but in saying…[Read more]

Hi Sachin, that $1600 rent equates to an approx 5% return if the purchase price is $375k which isn’t too bad if you’re getting a fair bit of capital growth. With that $600 deficit there would be other considerations (holding costs) which would make the gap a bit larger but there are tax concessions too.

The purchase price and rental figures you…[Read more]

Hi Pagey, can’t recommend anyone local to Tas for you sorry, though with many professionals they don’t necessarily need to be in the same city or state as you though. What you’ve identified already though is what you do need – a great team around you to help you succeed.