Hi PaulOk one step at a time.Firstly i hope your current lender allows for multiple dwellings on the single Title as i assume you wont get a separate Title until the dwelling is completed. Reason i mention this is many will not.Assuming this hurdle is out of the way then the Bank will value the 2 securities being the existing house and separate…[Read more]

Does having a few grand in an offset account really make any appreciable difference to a loan? You would be suprised how much difference it makes.Particularly if the interest  paid to the offset account is less than the mortgage account.If this is the case then you are not using the right product as every offset account we recommend pays the same…[Read more]

Wow sounds to me like an absolute mine field and I can think of varying issues which might arise.Does the land have separate title already as Westpac have an issue with multiple dwellings on the same Title.Sounds like an equity release loan potentially and repaying your MIL maybe a problem.Has the construction started ? I think I would starting…[Read more]

Having lived in Chapel Hill for the last 9 years i am slightly biased but to be honest not sure if you would find much in the suburb these days for your budget. We are on half an acre and in the private lane where I live the neighbours paid over $500K for their block of land last year.Not that i used public transport very often but we are not best…[Read more]

It is actually less than that "I have heard the average life of a home loan is 7 Years".

Hi MattFirstly welcome to the forum and congratulations on taking that first step to property ownership.Look i hate to be negative when it comes to other Professionals but ask yourself why is he directly you to these new apartments. Would it be that he is receiving a healthy commission from the developer and you in turn are paying for it.I am a…[Read more]

Hi JRHate to say i told you so but well i did. As a Licensed Financial Adviser myself i find it so hard to believe that there are so many advisers out there that are only in it for what they can get of the deal and not really interested in helping the client.To be honest finding a FA who recommends property is like winning the Lotto because of the…[Read more]

Hi GezzyWelcome back.There is no need to have a separate savings account as long as your are disciplined and dont spend the money as where else would you get circa 5.5% Tax free in the current low interest rate environment.

In essense the saving is identical but from a Tax perspective they are a miles apart

SNM thats good because we have put you down for two both the same configuration 4 sided with a flat bottom coming up to a chimney in the middle at the point.

Yes IZ i have had a few clients go them and then show me their Accounts for something we do at less than half the price.

RudigaPersonally i would never put additional money directly into the loan account and would always utilise a 100% offset account.Remember what starts off as your PPOR may one day become an IP and you need to have flexibility on your loan.Any funds you redraw from the loan through extra payments are only Tax deductible if the funds are used for investment.

Hi TriggermanYep not sure about Terry but I didnt have a grey hair when i first joined  the forum and wouldnt give it up for the world.Great place to interact with other like minded investors and share a common passion.Ok enough of that onto your questions:Questions are: 1. If I pay off the break fee of 6k after turning our PPOR into an IP, will t…[Read more]

Hi AitsmoiAs part of the Sellers Disclosure they will have to inform you about the Body Corporate set up and expenses however it is often prudent to get your Solicitor to undertake a search of the Body Corporate records to make sure there is no unexpected expenditure that has not been disclosure. Alternatively merely ask for a copy of the last…[Read more]

Hi BundyAs I am a director, is this not allowed.If the property is held in your SMSF then simple answer is NO i am afraid.

You do pay off the loan if you have a P & I loan with offset but if IO will merely reduce your interest repayments.Remember the balance in your offset account is building up and up and nothing to stop you transferring the lot over to the mortgage account and reducing the loan balance immediately. Not necessarily recommended but can be done.

Hi aitsmoiFirstly welcome to the forum and I hope you enjoy your time with us.Congratulations on making the decision to start your venture into property.Should I go through a mortgage broker or should I directly deal with the bank/ loan providers? What are the pros and cons?Ok firstly i must declare an interest here being a Broker. One of the…[Read more]

Yes must admit never had an issue in obtaining finance for clients who have salary sacrificed.

Hi RabbitMoving funds out of the redraw will not mean the interest will become tax deductible unfortunately.As soon as the unit is available for rent you should get it valued and this will become the cost base figure.

Yes and charge you and arm and leg for that advice.