When you move out and make the property available for rent all costs inc interest should be able to be deducted against your income tax.

Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
simon@mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any…[Read more]

What has got you thinking of investing in Vanuatu?

Was it the recent news story saying it’s people had the worlds best lifestyle or happiness rating or whatever it was?

Do you know much about it?

Would like to hear what makes a person consider such an unusual place. no offence meant – I am truly interested.

I have been there once in 1990 and…[Read more]

Give Terry a call and run your situation past him. I am sure he will give you some reasoned advice. If you like what he says then you might wish to appoint him to act for you as a broker. He is very good.

Cheers,

Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
simon@mortgagehunter.com.au
0425 228…[Read more]

Where are you?

Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
simon@mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

You have a 6 month period during which you can claim the CGT exemption on both properties – as long as the first is being sold. (Not sure if it has to be sold or not in that time). After 6 months you will pay CGT – but given the current climate and the 50% exemption it shouldn’t be much.

If you anticipate holding it for a while it might be best…[Read more]

Increasing the rent is always a positive thing – as long as the market can bear the increase.

Most investors use IO. Esp if you plan on buying more IPs. If this is to be your only one then the choice isn’t so clear.

Hope this helps.

Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70%…[Read more]

Just say that the loan purpose is for investment – shares. once you have the money you can change your mind.

Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
simon@mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or…[Read more]

Originally posted by mathewc73:

A 12 month lease from Jan/Feb is best and it will minimise your vacancy. However you need to plan for it as once a semester starts you may have trouble filling a vacant room.

…..a 12 month lease will be seen as undesirable to students and yours will fill last. If they break the lease what wil lyou do?…[Read more]

Different lenders have different times – sometimes they get backlogs. A decent broker should know who is slow.

But you have plenty of time. I wouldn’t like to see you leave your decision with less than four weeks left. But the longer you allow the easier it will be.

I have settled a loan in 12 days with a major lender but that was by calling…[Read more]

I have a five bedroom place I rent to students by the room. I think it is probably quite different to what you propose.

my council does not have a policy on a house with less than ten seperate let rooms so I am not classed as a boarding house.

If you think I could help just give me a call or post some specific questions.

Cheers,

Simon…[Read more]

Grass = Lawnmower

Is there storage for it?

Paving is a good idea with pot plants. Do them in two layers with taller plants against the wall and smaller ones in front for an effective look. Run some drip lines along them with a timer for an easy care courtyard.

Cheers,

Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to…[Read more]

When I was in the Army we were told to make sure our leases had a clause that if we were moved by the Army that we could show written evidence and end the lease without penalty. Rarely did I have to write such a letter for my soldiers.

Is this guy actually on a ship or a shore posting?

If he was a good tenant in all other respects and there…[Read more]

Don’t worry about stability. You have their money [biggrin]

If they do close doors then your loan should be sold to another lender and will continue under the loan conditions in the mortgage documents.

But don’t base your choice purely on cheapest rate – make sure you factor in all fees and any penalties for early repayment.

Most honeymoon…[Read more]

I think that must be terms that are used by this lender only.

The Australian terms are regulated or unregulated meaning any consumer debt is regulated and business debt isn’t. In the case of properties this applies to your home as opposed to an IP.

He should endeavour to use the industry standard terms to avoid confusing clients – and us…[Read more]

Sounds correct to me.

Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
simon@mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

You can get higher than 70% but the rate is quite a bit higher.

Do you have residential property to use as security?

Cheers,

Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
simon@mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment,…[Read more]

If the ATO can show you are doing it purely to reduce tax they will disallow it.

You also need to get market rent or the ATO will disallow it.

You will also sacrifice your CGT exemption which can be worth a lot if the housing market booms again.

Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70%…[Read more]

The requirement is that you live in the property for 6 months starting within the first 12 months.

I don’t know where the other two posters got their info from as this is what the legislation states.

There are ways to cheat the system but it is fraudulent and criminal to do so. Many people are caught.

Simon Macks
Residential and Commercial…[Read more]

Originally posted by For-Freedom:
Thankx voigtstr. But why many investors said they need to create room for interest rate rise in their cash on cash return %? Is that becoz they choose the variable interest rate?

Yes

The banks will try to maintain a competitive rate so your only concern are RBA rises. The banks won’t jack the rate up just…[Read more]

Originally posted by chrisconuts:
I disagree. The first home owners grant is only available to someone who hasn’t owned a property before, once you have owned a property you aren’t eligible:

From http://www.firsthome.gov.au/

“Neither the applicant nor their spouse (or de facto) must have owned and occupied a home after 1 July 2000.
Neither the…[Read more]