Ok, hopefully you come out in front. 6.88% is a great rate, I wish CBA would give me that!!

streamlineinvesting wrote:
My interest rate is about 6.88% with BankWest, however that is just a basic P+I Home Mortgage. I believe it is on some discounted rate for a few months yet where it will probably shoot up eventually.Will try to refinance in a couple years and see what the best rate going around is at that time.James

You will probably…[Read more]

Better than my interest rate- I am paying 7.1% with Commonwealth Bank. But I have easy access to equity via Lines of Credit so I am happy with my deal at the moment. I probably should shop around for a better deal, next IP I will be talking to a broker.Luke.

thecrest wrote:
Also, if I did buy a PPOR and use it as security for buying a commercial property, the bank will undervalue the PPOR and I lose about 20% of that equity's buying power, whereas cash is valued at 100%, not 80%.

You can use a LOC to redraw up to 90% of the properties value (provided you are with the right lender of course). This w…[Read more]

I looked in the yellow pages for the store, but no luck. Will let you know when I find it.

It is possible to get positively geared properties in capital cities, but you cant just go to the "Positivley Geared Property" shop and buy one. You need to create one by doing something out of the oridinary to bring the property up to its highest and best use- then you can gain maximum returns from the property and make it positively…[Read more]

Yes, I belive that you can claim the CGTE for up to 6 years from the time you begin renting it out. So you can rent it for 5 years, move back in for a few months, then rent again for another 5 years, move back in for a few months etc etc etc.Luke

It can be done- but I am pretty sure that Steve McKnight did most of his deals using vendor financing on properties that were worth (as D suggested) 40-50k. He didnt adopt a buy and hold strategy and aquired 130+ quality properties in the 500k range. He either bought and sold these cheaper reural properties quickly for a profit or onsold them with…[Read more]

Very good suggestion by Derek and a strategy that most users of this forum adopt. It provides maximum flexibility for future purchases.Luke.

You will be able to claim expenses on your house (including interest on mortgage repayments, council fees, insurance, etc) on your tax return. This will mean that if your expenses are more than the rent recieved, you will recieve a tax refund when you lodge your tax return.This is a good option if you have high mortgage repayments and a high LVR,…[Read more]

LMI protects the banks to a point, It doesn't help them a great deal if someone defaults on a mortgage and then goes bankrupt. They still carry plenty of risk even with LMI.

cturner22 wrote:
Hi LukeSo do you thinks its value for money?  For me, I thought it was an affordable beginning as I wanted to join the RESULTS mentoring program, but Im still organising my finances and did not have the funds availableThanks

Yes, I definitely think it is good value, I have been reading heaps of books, have purchased 1 IP about…[Read more]

I joined last year in November. It has been quite worthwhile so far- there have been online video seminars on USA Tax Lein and Tax Deed investing, a 'Getting Started in Property Investing' seminar and a few other videos. There has also been other reading materail and monthly videos about a bunch of other things. It is quite expensive, $70 per…[Read more]

mattnz wrote:
In Australia they are much higher now, Sydney has a multiple of 9 and Melbourne 8. You have to wonder what NAB's economists are saying behind closed doors about how overvalued the Australian market is. I

They are still lending 95% LVR for Australian property so they musnt be too worried.

number 8 wrote:
With all due respect to the above, be careful the way your capitalise interest.http://www.birchcorp.com.au

Further to this, to capitalise interest on an IP, you will probably need a private ruling from the ATO. You will need to prove that the reason you need to capitalise interest is to hold onto the asset, and that the reason is not…[Read more]

You should talk to a mortgage broker about this one (there are plently of good brokers on these forums). Surely there is someone out there who will lend money to you.Luke.

It is definitely possible. Steve McKnight is using a SMSF to buy USA foreclosure property as well.Cheers,Luke

Sorry forgot to add, are you in NSW? Getting approval for granny flats is easy here but they can only be 60m2 maximum. I am not sure about other states but check with your council.Luke

Check out this construction cost calculator- found at http://www.bmtqs.com.au/ConstructionCostCalculator.aspxThe per square metre price of a granny flat will be higher than the per square metre price for a four bedroom house. You could either get a project builder to build your granny flat (there are plently of companies I know of in Sydney who…[Read more]

It sounds very risky- If you dont have the $120k to complete the renovations, what are you going tp do if you can not find tenants or the valuation comes in low? You will be stuck with $700k of debt and no way to pay it back. You need an exit strategy in case things go wrong. Finding tenants, getting it revalued and making a huge profit is not an…[Read more]