Land can certainly generate an income (i have 4 blocks in my SMSF which i lease out to a haulage company to store their heavy vehicles) so as long as you have the intension to either rent it out or can prove you purchased it with a view to constructing a dwelling on the land then you should be able to claim the interest and associated…[Read more]

Hi Chanakya

Without having all of your personal details it is difficult to comment as to whether you should sell the unit or not (personally i never like to sell any property and built my portfolio on rental income) but either way assuming the new house is for your own occupation regretfully the entire interest bar $20,000 will be non…[Read more]

Certainly you should be insuring the property the day you sign the purchase.

A good general insurance based Broker should be able to provide you with a suitable policy.

Secondly if you intend to develop the property in the future then ensure your lender is happy with multiple properties on a single title.

Be surprised how many are not great…[Read more]

GOM your guess is as good as mine.

All i hope is they are separate loans and not cross collateraised as at least that way you can refinance one of the loans away and keep moving forward.

Personally i would clean it up now rather than later as they are not the quickest in the discharge department.

When you want to move forward last thing you…[Read more]

I have spent the last 15 or so years assisting investors with their loan structures and investment property acquisitions and never fail to be amazed at some of the ways in which over priced properties are sold and promoted.

The misconception that you must buy new to make it a good investment is merely a sales tool used by such marketing…[Read more]

Hi Luke

Coming in late in the conversation couldn't help hearing the word MISA which means it is a Com Bank loan.

I would check and double check with your Broker / Banker it is the right type of MISA account as on that size loan you certainly aren't getting top rate discount so would want to make sure it is a modern day MISA and not the old non…[Read more]

I have 1.1% with Anz but then i must admit my lvr is down 6.3% with borrowings now at $1.03M and security value at $20.3M.

If they offer you 1% take it an run.

With SGB we have had them offer 1% discount and waive the Annual fee but remember it is not about the now but about the future.

Anz Bank have one of the poorest serviceability models and…[Read more]

Viks Sorry why do you see LMI to be something to avoid.

Most successful investors accept the fact that LMI is an opportunity cost and if it means they can grow their porfolio that much quick then it is a cost worth incurring.

In most cases it can added to the loan so doesn't have to come out of savings.

Remember if you purchase a property for…[Read more]

Sorry both been flat out last couple of days.

Interview emailed.

Cheers

Yours in Finance

Yes you are in good hands with Jamie.

Cheers

Yours in Finance

And there lies one of the problems.

New developers want residential rates and usually want to try and save on application, valuation or line fees etc.

Experienced developers realise it is more important to get the deal done and the overall interest rate and set costs are fairly minor in the scheme of things.

10% is about par for the course and…[Read more]

With limited equity i cannot see any reason why you would not use LMI.

Just make sure you structure the loans correctly so they are not cross collateralized otherwise the premiums will be more expensive.

Also ensure your Bank or Broker spreads your LMI risk by using both LMI providers.

Be surprised how much difference there is between both…[Read more]

Hi Barney

Like Paul i have been involved in VF in Qld since 1996 but have to say in 2013 you wont find anything in Brisbane like that what you are requiring.

We pulled out of offering VF in Brisbane in 2005 and back then had a maximum loan of $175,000.

Even with current lower interest rates and based on the fact that you you could locate a…[Read more]

JacM makes a valid point but it actually gets worse than that.

Imagine you borrow 100% of the purchase price and cross collateralise your new Docklands inv with your PPOR or other IP
You decide to sell the PPOR and the Bank downvalue the Ip. They say to you either could you put some cash into the deal now as the value has dropped and of course…[Read more]

Very true Jac

I see it all the time with clients and this becomes more of a problem the older the investor gets as often they are looking to reduce their working hours and live off some of the property income.

This is only possible if they sell the asset and the market is right.

With a good yielding property you can live of the rent and come…[Read more]

Hi Jason

Claire mentioned that she moved out of the house didn't say she sold it.

Stamp duty in Qld on the transfer cannot be claimed as a Tax deduction.

It is actually added the Cost base of the property so when you eventually sell the CGT is reduced.

Ok if you are looking at an IP post July 1 then might have different criteria to meet your…[Read more]

Jac M has made a valid point and i must enjoyed i did chuckle when i read it.

When i first talk to a client about their investing goals most investors think if they do their research capital growth is guaranteed.

I usually say to them buying a property with this attitude is like gardening.

You can prepare the ground, check the acidity of the…[Read more]

Tim you can start a SMSF with a couple of thousand dollars but whether you would ever do so is a different matter.

Certainly i would never advise a client to start a SMSF with such a small amount.

In regards to new investment products there are a couple with close to 100% funding subject only to the security property.

We in fact as a private…[Read more]

Would avoid off the plan like the plague.

Sure interest only might reduce your repayments but probably wont increase your serviceability.

If you intend to remain in the current property for the foreseeable future and are trying to build an income stream long term you can always look to pay down debt or certainly look at going interest only with…[Read more]

Sebastian from an aged forum member to a newcomer welcome.

I don't think you can go far by joining in the forum banter and discussion and you will learn a lot from members with all areas of expertise.

Read, educate and take nothing for granted and you won't go far wrong.

I like your attitude about realising investor mentoring is a 2 way…[Read more]