What lvr have your Bank told you they would advance ?

Also ask them what percentage of the rental income do they use for servicing.

My personal opinion is i would avoid it like the plague but i built my portfolio with quality yield assets.

Cheers

Yours in Finance

Depending on the rest of the deal 95% lvr + maybe possible but going to depend on a couple of points.

If you are referring to a lowset duplex i think 400K is rich.

That's 200K per side and assuming they are 100 Square M each that's $2K / Sq M ……   wow.

There are a few firms that build duplexes as part of their standard construction…[Read more]

Tell you what if we get any more rain in Brisbane i am thinking of moving down South.

That assumes you guys in Vic wil have me.

Cheers

Yours in Finance

Hi Deepak

Will depend on the State you are going to build,

In NSW it is the Office of Fair Trading that regulated Owner Builders so you will need to check the Warranty Insurance details.
The property must have Warranty Insurance for 6 years after the date of completion if you intend to sell.

Financing a deal of course can be a different story…[Read more]

Hi Joe

Any change in the Banks security you would need to disclose it so hate to say Yes.

If you were paying cash or not using the property as security for the loan and it would only enhance the lenders security.

Normally the way we do these for clients is get a valuation based on the front block only post sub division and then if it means a…[Read more]

Sorry i can't believe i am reading the content of this post.

Firstly we have an unlicensed tradesman carrying out building work (and i don't care if he is a electrician or not he is not qualified to carry out construction) then secondly you have paid him cash. 

Certainly receiving or paying in cash is not illegal as long as he declares the…[Read more]

Claire (Zorro) whilst we wait for the valuation to come back i will shoot you a RP Data report on the property.

Certainly when i negotiate any property deal i get the Terms set first and then worry about the price. 

Access to the property to undertake certain items of repair etc can always be negotiated as long as you are correctly…[Read more]

As Terry mentioned as long as you are an Australian Citizen you shouldn't have too many issues.

I have a forum client who contacted me a week or so ago who is based in Dubai and asked us to source an investment property for him as well as finance the deal.

No real issues in doing either however some lenders love Non resident applications and…[Read more]

Anz also do a 1 year fixed rate with 100% offset so that might suit.

The down side as Jamie mentioned is that the it requires a full application.

We do them fairly regularly with Anz and they are not as painful as most as long you don't want to increase your borrowing at the same time.

Cheers

Yours in Finance 

2 Townhouses should be a walk in the park although assuming they are 2 storey it is unlikely you are going to find anyone of the national building groups be prepared to quote on it as it doesn't fit their simple box criteria.

If you let us know where the property is located we might be able to give you some options.

Cheers

Yours in Finance

Claire hate to say the Stamp Duty on the Transfer will not Tax deductible but added to the cost base once the property is sold.

Also the First Home Owner Grant Stamp Duties concession form clearly states that the property needs to be occupied for a continuous period of 12 months.

Anyway away from that if you are considering renting the property…[Read more]

Hi Andrew

Sorry to hear about your family passing never an easy time.

Have to say on the numbers you have given us the property certainly wont be paying for itself and whilst i can understand your desire to retain the property you would have to ask whether it makes financial sense.

By retaining the property it will certainly have a drain on…[Read more]

I pay down all of my investment loans and as at April 1 i think we were down to $1.14 M but then i am fortunate to be in a slightly different position to most investors.

As Terry mentioned IO give you flexibility and the interest being charged with IO + offset will be the same as going P & I.

Of course you need to ensure you are not paying a…[Read more]

JMS, you will require the Banks consent to subdivide the property anyway and unless the front block has bags of equity and values up post subdivision you may find that they either want cash to reduce the initial loan or other equity from the back block anyway.

In saying that many lenders do not accept multiple securities on the same Title so you…[Read more]

I think it would be a good thing. 

If anyone parked on your verge the Tenants would have far to go to get the car moved.

Only downside i can think of is the flashing blue's and twos keep you awake at night.

Cheers

Yours in Finance

Aosv

You say you do not have to buy the property thru your SMSF.

Are you sure that is the case. What is the purchase price and what do you have in the Fund.

Cheers

Yours in Finance

Not sure Terry is a Financial adviser yet although of course i stand to be corrected.

Last time i hear he was chalking up the exams but certainly for a lawyer in Sydney you cant go wrong.

Cheers

Yours in Finance

Personally i wouldn't buy a unit if i was thinking of eventually renting it out as capital growth is going to be limited and cost are going to be higher.

Yes i do buy units but only when i buy the whole block.

What are going to do if there is no Capital Growth ?

I am great believer of buying for yield as that is tangible and can be banked each…[Read more]

Hi Kenny

There are no death duties in Australia. However, tax may be payable on certain income or capital transactions that occur as a consequence of a person's death.

This is a fairly complex area of Tax planning so rather than post a snap shot on a public forum i would strongly suggest you obtain Professional advice from a Tax…[Read more]

Hi Ben

Sorry can i ask why you are looking for a Investment Club.

What are you wanting to achieve ?

Cheers

Yours in Finance