Are you able to take a week off to be there – do some of the basic work yourself to save some money.

Otherwise, like Jamie suggested – see if your PM can do it or just manage it yourself from afar and get the PM to inspect the work done to ensure it’s up to scratch before paying the final bill.

Hi Kate, sounds like you’re on the right path! I found the greatest education sources to be forums – better than any books I’ve read or (free) seminars I have attended.

When I was working out my financial and property goals I set my end goal and worked backwards from there to give myself some guidance and direction.

As an example – in 10 years…[Read more]

nearmap is good – not free but not expensive either.

http://nearmap.com/au

How long have you been a contractor for?

One advantage of selling the PPoR that I can think of is it being CGT exempt. But there could be an opportunity cost there if prices continue to rise.

Rent in the area you wish to live in may be a good idea – try before you buy, or just continue to rent and invest in the IP’s as a $2m PPoR wont do any…[Read more]

I usually go for regional centres that fit my criteria although I do have 2 in Melbourne and none are NG or CF-.

I like to buy cheap and in need of some non-structural TLC, reno and rent. They may be CF neutral to begin with but not for long.

The ATO has some good information regarding what can and cannot be claimed and when.

https://www.ato.gov.au/Individuals/Income-and-deductions/In-detail/Investments,-including-rental-properties/Rental-property-expenses/

Rental property expenses
What you can claim

You can claim expenses relating to your rental property but only for the period…[Read more]

I’m making a lot of assumptions here but this is how I figure it:

Secured Personal Loan: $49,000 – 4 yrs @ 9.49% and monthly repayments. Total interest paid over 4 years is $9,992.56
$49,000 offsetting HL @ 5.31% over 4 years – interest saved/offset $5449.70
Is the HL an IP or PPoR? As then you would need to take into account tax deductions too…[Read more]

Sounds like a good plan. Similar to what I do – buy properties that support themselves (but at 90% LVR) with an IO loan. I then intend to hold until I reach the stage where CG has put my port folio at a ~50% LVR, sell half and live off the rent of the other half. Need to be wary of CGT though. Aiming for this in around 10 years time for me.

Is the separate loan of $85k a line of credit? Doesn’t sound like you’re crossed from what you’ve presented. You’ve just drawn on equity to pay the deposit – or did the banker (broker?) arrange it all for you?

On face value, by the looks of it, the loans are secured against IP1 and IP2 is stand alone but it’s hard to say. Have a look at your loan…[Read more]

A +1 for a knowledgeable broker. They wont (shouldn’t) show bias towards a particular bank or product and will find a solution to suit your needs now and for in the future.

Generally investors have an interest only mortgage that will allow them to maximise their tax deductions by not reducing the principal of the loan and assist with cash flow…[Read more]

Not a problem.

You don’t want to be creating a false economy in a way by pumping too much cash into the deal to make it CF+ either – better if the figures work without bucketloads of cash as it helps you leverage for future purchases without getting into negative territory. If you’d prefer a larger deposit you could do an 80% lend and leave the…[Read more]

I’ve always gone about my PI with my business hat on but there was tenants I had who split up. She left and took the kids and he stayed in the property and gradually got behind in rent – the fixed lease was up in 6 weeks so was not going to renew his lease.

He gave a sob story to the PM about how he was in a bad way from the break up, got fired…[Read more]

It depends on a few things like how aggressive you want to be, also your risk profile and what your goals are.

90% can be a happy medium as any growth (manufactured or ‘natural’) your properties have you can redraw that equity out as 90% is the top-up limit for banks. That way you’re finding the balance between LMI and leveraging for on-going…[Read more]

I would stay away from Melton too. I built my PPOR and lived there for nearly 5 years. The CG was awesome to begin with as it rode Melbourne’s wave but soon went backwards and is only just staring to recover now. But… Like someone else mentioned there’s too much vacant land and house and land packages being released that are keeping prices down.…[Read more]

Have they explained why they’re wanting to go month by month? Are they looking to leave in the near future?

Are you looking to borrow in the near future? Not having a fixed term lease in place *may* impact a loan application.

Also check your insurance policy as some insurers don’t like month by month leases.

Might be worth seeking tax advice on this as even though it’s at arms length ie via a PM you (your employer?) are essentially renting from yourself.

Also a consideration would be insurance – is the lease through your employer or is it let more as a holiday let type situation? Some insurers don’t like it of there isn’t a set lease in…[Read more]