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newandkeen

  • newandkeen started the topic SBO overlay in the forum Value Adding 3 years, 9 months ago

    It seem every time I find a property I like with subdivision potential in my price range it has SBO special building overlay, either all over it or down the street on which it sits.

    Could someone please give me an indication of what this is going to mean in terms of what it might involve and what the additional costs might be estimate?

  • Thanks lauriek, something to think about :)

  • Hopefully a quick straightforward question.

    I do not yet know which entity I want to go for, but my superficial research has suggested maybe I want a trust. Yes, I plan to see an accountant about it. (no, I really don’t fully understand it, or even partially understand it).

    My question is, do I need to know this before I start refinancing and…[Read more]

  • Thanks for your responses guys, you made it clear I am on the right track with equity loans and never mix them up :)

    Banks are getting much stricter on servicing (and caring less about your assets, other than the security they hold), so perhaps it may be prudent to consider high cashflow investments (at least until your servicability is…

    [Read more]

  • Hi, I currently have a PPOR which has a fair bit of equity in it, enough for 2 investment properties @ $400K.

    Looking at getting a line of credit/equity loan, but still pretty unclear about the details of these.

    In particular, in terms of tax, what if I use one line of credit loan for 2 different properties? Will that get too confusing or cancel…[Read more]

  • Hi, I currently have a PPOR which has a fair bit of equity in it, enough for 2 investment properties @ $400K.

    Looking at getting a line of credit/equity loan, but still pretty unclear about the details of these.

    In particular, in terms of tax, what if I use one line of credit loan for 2 different properties? Will that get too confusing or cancel…[Read more]

  • Hi, I currently have a PPOR which has a fair bit of equity in it, enough for 2 investment properties @ $400K.

    Looking at getting a line of credit/equity loan, but still pretty unclear about the details of these.

    In particular, in terms of tax, what if I use one line of credit loan for 2 different properties? Will that get too confusing or cancel…[Read more]

  • Thankyou for your answers. OK, I can see not much if any interest would count for tax from my own home turned rental. Meaning the rent will all be taxed as profit. And having never looked much into CGT, I did not know about the 6 year rule, thanks for giving me a starting point to research.

    If I can refinance the home to a larger amount, it means…[Read more]

  • Also, I just read that it is possible when I refinance the current PPOR I can make the loan larger and use the cash for other things, which I didn’t realise (I have a fair bit of equity in this loan).

    How would this impact on the capital gains tax scenario?

  • Hi,

    Was wanting to know how capital gains is worked out, particularly on a property that was purchased as a PPOR and lived in for the bulk of the time and rented out for a couple of years before selling to purchase new PPOR?

    I built and have had my home for 13 years and it was never intended as an investment, we have lived there 13 years, we…[Read more]

  • I have a lot of equity. I would have no problem using 20% equity securing a property. But actually paying 20% deposit is an issue, unless I misunderstand, taking money out of my mortgage, to pay on the investment property, meaning, for example, if I had 100K on the home and an investment loan for 100K, I would have to shift 20K making the home…[Read more]

  • OK that is a relief thanks Terryw, I meet with him on Monday so I won’t get roped into such a bad deal! (And know to walk away if he can’t offer me anything reasonable).

    But what do you mean I can borrow the deposit against existing property and not to use redraw?

    [You mean don’t get an investment loan with redraw? (I do currently use redraw on…[Read more]

  • OK that is a relief thanks Terryw, I meet with him on Monday so I won’t get roped into such a bad deal! (And know to walk away if he can’t offer me anything reasonable).

    But what do you mean I can borrow the deposit against existing property and not to use redraw?

    You mean don’t get an investment loan with redraw? (I do currently use redraw on…[Read more]

  • OK that is a relief thanks Terryw, I meet with him on Monday so I won’t get roped into such a bad deal!

    But what do you mean I can borrow the deposit against existing property and not to use redraw?

    You mean don’t get an investment loan with redraw? (I do currently use redraw on my PPOR and find it very useful).

    And more interestingly to me,…[Read more]

  • I think I am finally ready to invest, my biggest obstacle to date has been getting my partner on board for this journey. I have loads of equity in my PPOR. (My vague plan was to buy an investment now, pay off my home in entirety over the next 5 years, then buy up other investments. Partially because my partner is resistant.).

    So, being ready, I…[Read more]

  • So the thing that worries me the most about your proposed plan is what Terry said:

    “Even the sale of a property with some equity may not be possible as it could trigger a valuation and then the bank will require existing loans to be paid down to maintain acceptable LVR – which you may not have the funds to do.”

    You need to know under exactly w…[Read more]

  • I am absolutely new to investing… in fact we are thinking about buying our first… so I am only writing from the point of view of what I might do with no knowledge… and no one has yet answered your question. Maybe someone will reply once they see my ignorance and feel the need to correct me? Maybe I might just help you think it through?

    If I…[Read more]

  • Hi. I have been thinking about a town close to myself, just outside of Melbourne, which has been written into the plans to be developed into a much larger town. There is some potential for growth in my view, and some risks. It is also simply an area I would like to move to myself one day, so I guess that is playing in my mind too.

    But my question…[Read more]

  • Oh… and I forgot. In the units favour, they are brick/slab, whereas the houses are weatherboard, and I just feel more comfortable with the brick… is this irrational though? Most of the town is weatherboard.

newandkeen

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