It is all about risk mitigation but personally for a first time client looking to build a portfolio we would probably suggest they start with something < 350K rather than a
property for 500K+.

Buying a cheaper property helps with land tax strategy planning and also when interest rates rise (and they will do in this cycle) you can look to increase…[Read more]

Hi Johnny 

Not only does the existing loan structure sound messy but also going forward does not sound as though you are maximising your deductible interest.

Whilst there is not enough information to make any real structural suggestion you could also look at doing a Spousal transfer (subject to the location of the properties and the marginal tax…[Read more]

Jamie is correct there are 2 lenders who may consider it as residential and Adelaide Bendigo Bank are one of them.

Unfortunately they won't do it thru their direct channel and only thru their mortgage management channel of which BMM are one of their managers,

Cheers

Yours in Finance

Good luck in refinancing the UK property when you are not earning GB Pounds.

Recent changes to UK lending legislation has meant that you will not find a lender to allow a release of equity unless you are an expat earning GBP.

Cheers

Yours in Finance

Hi Tommy

No not at all.

What i am saying for a VF client we would never advertise on a tree or lamp post that we want to buy your home and then try to on sell it.

There are many better ways of joining the dots.

VF is an excellent strategy to increase your cash flow to pay down your buy and hold debt and certainly recommend it as a balanced…[Read more]

Hi Martin

Yes and no.

Believe it or not if the town or city is big enough and there are some comparable sales of similar blocks we can still get this financed at residential rates and lvr's.

Just done a block of 7 for a forum member at standard residential rates but as mentioned all boils down to how many other sales there has been.

If not you…[Read more]

Hi Mikko

I have to say if they want to charge you $1500 for setting up the SMSF & the Corporate Trustee then that isn't bad at all.

We charge $1700 + GST and then if you want the Deed updated for free over the next 5 years charge an extra $250.

Course after you have established the Deed you have to set up the Security Custodian Company and Bare…[Read more]

Hi NG

As Terry mentioned i hate to say it is not that easy.

You can't have your cake and eat it.

Very few lenders offer such a products.

Cheers

Yours in Finance

I agree with Jacqui in mixing strategies.

When we work with a client especially one still in the acquisition phase we try and mix a combination of buy and hold's with some VF or a raft of other positive cash flow strategies.

We use the surplus income to pay down any non deductible debt on their PPOR and then look at debt recycling so they can…[Read more]

Nope not missing anything.

These guys are either involved in Vendor Finance or merely looking to take a Call Option against the property and flip it for a profit.

Nothing new there and always someone desperate who will call them.

Must admit when we work with a client on a VF strategy it is the last way we would do business.

Cheers

Yours in…[Read more]

As has already been stated very difficult starting out.

I remember back in 1996 when I started full time investing and developing in Australia was a matter of balancing a day job as an investor with Broking and Financial Planning in evening and I had substantial cash funds behind me.

Funny that 18 years later I am still Broking however these…[Read more]

Apart from the every increasing insurance premiums in Gladstone the other real issue is the falling prices.

Biggest issue we have seen recently is the valuation and the purchase price are not coming equal.

Like anything you make you money in the buying of the asset so if you buy right over the long term you will probably do ok.

Personally we…[Read more]

Eric, ALI are owned by Met Life in the USA the largest provider of life insurance in the world.

Your will earn a tidy quid by arranging it and you could certainly find that you can dop better thru a Financial Planner who can give you a range of options.

In saying this ALI underwriting is fast and efficient so if you want something immediately…[Read more]

Very true Terry I think we could both name a dozen or two of those tyre kickers.

Cheers

Yours in Finance

I don't see an issue as long as the Terms of the Option allow it and of course you have legally indemnified the seller.

Probably are going to want to ensure you have all of the required Insurances in place.

Just remember you won't be able to borrow a cent using the property as security so either need Cash or equity elsewhere to draw upon.

We…[Read more]

Hi Ivan

Yes couldn't agree it is certainly not for you average joe but done properly I think it works well for the right client.

Property spruiker heaven.

i will bring up the new section at the next Moderator meeting but I think there are a few other forums we would add in first.

Cheers

Yours in Finance

Funny how everyone is talking about tighter LVR's however we have just completed a couple of 100% SMSF loans.

Not easy and documentation needs to be bang on but again where there is a will there is a way.

Cheers

Yours in Finance

I personally would not be using cash for anything.

You could always borrow 100% of the new purchase price and use your cash savings as collateral security.

As the property increases in value you release the cash security, rinse and repeat.

Cheers

Yours in Finance

I am with Terry no way i am aware of avoiding Land Tax in a Company name in Vic.

I was talking to clients on Friday here in Brisbane on a similar matter.

Your land value increases but the individual State thresholds never seems to keep pace.

It is one of the things we look at when we are working with a BA investment client who is looking to…[Read more]

Look have to disagree.

Jacqui (JacM)  and I have bought and sold over 260 properties between us for our personal portfolio over the last 17 years and carried out a fairly thorough study with our carpet installers on the last big development we did.

Below is a bit of summary 

Wool

Wool carpets remain a favourite for their warmth, luxurious feel…[Read more]