blocka wrote:
if the banks lend at lets say variable 6.5% and fixed 6.0% and people choose fixed, and rates go up 0.5 % the bank looses by 1.0% BUT if rates go down the bank wins or the losses are less,
so if rates are going up which i dont think they will why would they banks lock people in so low ? makes no sense unless they know they will be…[Read more]

AALLII wrote:
I am considering developing 5 units on a single title. All are three bedders with 2 car garages in a suburban location. I have been advised that big 4 banks will only consider 3 or 3+ unit development as commercial and consider rates at approx 11%.This does not seem reasonable to me as the property will be secured anyway.This is…[Read more]

Chen- i haven’t looked over your numbers, but just a quick tip as im subdividing one of my IP in the North west district as well ( Cheltenham — > Hornsby council).

1. There are diff type of subdivision, if you want it to be torrent title then it will need to be a min 500+ squ ( depending on council) from what i understand + a 1.5m set back.
2.…[Read more]

Chen- i haven’t looked over your numbers, but just a quick tip as im subdividing one of my IP in the North west district as well ( Cheltenham — > Hornsby council).

1. There are diff type of subdivision, if you want it to be torrent title then it will need to be a min 500+ squ ( depending on council) from what i understand + a 1.5m set back.
2.…[Read more]

If the flood ratio if 1:100 or more…then it should be fine.

If it’s less then 1:50- i would do further DD.

I presume your talking about North Wentworthville in NSW??

If so; Parramattta council has a list of houses/street that are flood prone with their associated % – don’t have a direct link for you, but i do have the report and if you do a search on the council’s website for ” Water management / flood studies” you should find your answer there…

If…[Read more]

Scott No Mates wrote:
What are the chances of reasonable rates on a block of 8 one bedder townhouses/villas in a rural location? I see some potential to convert to two  bedders down the track?

1 bed + Rural….expect to be commercial….

ttcb75 wrote:
Thanks Richard,I know it can be done, but who will do it?  Everyone i am talking to is talking commercial rates. Bankwest will do a very reasonable commercial rate, however all other lenders are offering over 8%.

For a deal this “unique ” ( well according to the big 4 banks anyway) -i would suggest you speak to Richard if you…[Read more]

House Call wrote:
I have a newly formed SMSF and want to borrow to purchase a commercial property at approx 40%LVR. ( Value $350k, already have $200k deposit)Commonwealth bank wants me to pay $3300 to see their financial advisor before I can even apply for their super product, called SuperGear.  I don't mind paying good money for good advice…[Read more]

http://www.rba.gov.au/media-releases/2012/mr-12-02.html

Yep that sucks

booge wrote:
Forgive my ignorance, but how come?

PPOR- Is a non -tax deducible debt..while the IP is.

Regards
Michael

mattsta wrote:
regarding the expenses, I would think that you can claim it if you conduct investment properties as a business (well that's how I can claim it in my experience). I'm self employed so it's easier for me to claim it as such. I'm unsure for people who hold a regular 9-5 job whether they'd be able to.Talking to an accountant is a good…[Read more]

This is a classic case of how getting the right structure is so important, beats any “cheap rate” on offer. Also an example of how bank staff will just get you the deal that’s easiest for them and “who cares what happens 1-2 years later” …

Anyway solution.

Your broker is right in saying that you shouldn’t “redraw” the loan from the IP to pay…[Read more]

Accountants selling Amway plans hey…business MUST be tough lol.

On a serious note, 20% of a investment minded broker’s job is to find a suitable lender to access finance, the another 80% is loan structure, planning, working out which way method achieve a higher tax benefit, lodging Governments Grants, cost to tax benefit comparisons ( LMI and…[Read more]

Just answering some quick concerns you may have Steve.

1. Your income is quite high, so your probably paying quite a heft tax every year ( which is a good problem to have ^^)
2. It’s good that your thinking of changing your loan to I/O
3. I would suggest an offset account as well, to offset your PPOR debt in a tax friendly way
4. You have roughly…[Read more]

steve3110 wrote:
Hi everyoneI am hoping someone can recommend me a good accountant or financial planner here in Perth with property experience… I'm a newbie to this sort of thing but I'm trying to educate myself.I am considering purchasing an I/P but am a little confused with the process of using equity from PPOR to do it, how much would be a…[Read more]

My comments are directed more towards St marys, Willmot, Dharruk and those surrounding areas ( Blacktown is ok)

Experts been saying the area is going to grow for the last 5 years, but most place will grow in 5 years time ( how much depends on your expectation) …nothing new.

Recently there has been more hype in the media because it’s one of…[Read more]

JayDee26 wrote:
So the comments leads to Blacktown, St Marys etc being high growth areas. One question I had in mind is if this is the case then why do the house owners sell their properties for under $300k in some areas when they could just keep them and wait for CG?Your thoughts please!

If your buying in St mary an Blacktown, you won’t be…[Read more]

JayDee26 wrote:
So the comments leads to Blacktown, St Marys etc being high growth areas. One question I had in mind is if this is the case then why do the house owners sell their properties for under $300k in some areas when they could just keep them and wait for CG?Your thoughts please!

If your buying in St mary an Blacktown, you won’t be…[Read more]

If you go to a diff lender; make sure to order an UPFRONT valuation first BEFORE any Credit checks- else you end up with muti credit checks.

It doesn’t affect your approval as such. just a different order of how things are normally done.

Regards
Michael