Quite well is a slight understatement.

Bought one house in my SMSF for 32K which i then onsold thru a Rent to Buy scheme to the existing Tenants.

They pay just over $22K per annum and have been there for a further 10 years. They still owe my SMSF $76K plus a balloon at the end.

Not a bad cash on cash return.

As for buying in know at todays…[Read more]

If not mate get your Broker to refinance the loan for you and structure it correctly from day 1.

Cheers

Yours in Finance

That's why i don't use PM's i employ my own member of staff too manage my portfolio.

She covers everything from regular property inspections, interviewing new tenants as well as providing me with a portfolio statement any day i ask for it.
In saying that i understand not everyone can afford or justify to employ their own PM.

Cheers

Yours in…

Yes your own serviceability will be taken into consideration on any new borrowing.

Make sure your Broker gets a couple of LMI quotes for you as the even though their are 2 main mortgage insurers the rates charged varies from lender to lender.

Building a property portfolio is more about the structure and set up rather than the bottom line…[Read more]

A5 that of course is properietary information and why we spend thousand of dollars on visiting towns and carrying out own research which we offer to our clients.

Cheers

Yours in Finance

Unlimited, it will depend on with whom your loan is with as to whether you can create a second split.

Either way i would have used an equity loan rather than a LOC.

Link your offset account to the non deductible split.

If unsure get your Broker to do it for you. We do it all day long for our clients.

Cheers

Yours in Finance

Hi Steve

Firstly welcome to the forum and I hope you enjoy your time with us.

Being a pom i wont hold being Irish against you especially as we have to stick together as Lions for the next 3 weeks.

Sorry to hear about the downturn in the Irish market. i have a property still in the UK and must say the South of England (ignoring London) has held…[Read more]

Unlimited, just to clarify that the 150K LOC is a totally separate facility and not part of a redraw or mixed with your personal borrowings ?

Assuming this is the case then sure draw 20% + acqusition costs from the investment line of credit (personally i prefer equity loans as they are charged at cheaper interest rates) and then take out a…[Read more]

Yes so true Freckle if only it was as easy as all that.

Cheers

Yours in Finance

Hi A5

I think you have the right idea.

Thru the Buyers Agency arm i run with my business partner we look at a couple of other important drivers in relation to property proximity, university / hospital location in the town etc.

Of course you want to try and buy in an area that will grow but yield and cash flow is more important as it the…[Read more]

Hi Menia

I think you have your head screwed on and totally agree with you that you can live off rental income but cannot live off capital growth.

We specialize through our Buyers Agency arm in locating properties just as you have outlined and find it is important to match the property with the clients goals and objectives.

Too often i see…[Read more]

Yes Spiro

I agree with makes me laugh but i must admit the majors do a good job of focusing on bottom line rate and not much else.

Cheers

Yours in Finance

Oh Joe often comes with the territory.

My usual response is cya later.

Cheers

Yours in Finance

Rick

Most of don't charge a fee as we are remunerated by the lenders with whom we deal with so cost you nothing for our service.

Cheers

Yours in Finance

Agree with Terry.

What i often get is at the end of the coffee meet is "could you email me a list of lenders who will do that or some more detailed information on buying in my SMSF so i can pass it onto my regular Broker / Financial Planner as they didnt believe it can be done". 

Cheers

Yours in Finance

Hi Rick

That does not surprise me.

I never fail to get amazed at the lack of quality information given to iinvestor clients by Banks / Bankers. Most of them have no clue when it comes to loan structuring.

Some lenders do not offer their full suite of products when a Discretionary Trust is involved so a Broker will be able to give you a variety…[Read more]

Hi Stu

No not at all. Anything is doable just boils down to a combination or rate and lvr.

Do deals like yours all the time.

Cheers

Yours in Finance

Wilko that's exactly what my thoughts and previous comments related to.

The structure of the initial loan set up is the important part and done properly i believe it could be done.

Cheers

Yours in Finance

Hi Alterego

Firstly welcome to the forum and I hope you enjoy your time with us.

Nice position to find yourself in although sorry to hear about the family loss.

Structured correctly there is no reason why you cannot both use this as an excellent launching pad to set yourselves up for the future.

Without firm numbers it is difficult to comment…[Read more]

Hi Jenny

There is no standard VF interest rate it all depends on your circumstances and what returns you are looking for.

I did one in my SMSF last week at 6.5% (which was a percentage over the Cash rate which i normally work off)  but in saying that the on sale price was higher than 10% above my initial purchase price.

I guess it depends if…[Read more]