Hi,

Firstly i made a few assumption, each one has a MASSIVE impact on the outcome even if it’s a few $ difference…

1. income of $45,000 ( 40 base, 5 over time…you need to have 6 month proof of over time )
2. No dependent
3. No another debt what so ever- no Hecs, no personal loan , car loan etc…
4. No another income beside salary and rent (…[Read more]

The big 4 bank’s commercial department has been quite flexible in the last 4 month, so they would be my first contact.

Regards
Michael

The loan gets paid off because:

1. Rent increase by inflation atleast while your loan term is remains the same — a $300,000 loan 10 years ago is not the same as having a $300,000 loan in today’s money ( inflation and price of $$)

Cost of money

Rent= increase
Mortgage= remains the same ( I/O)

2. Now for the rent to = mortgage repayment will…[Read more]

wow this tread sure took off!!!

Not sure why your accountant gave you this advice– doesnt sound right, but he/she must have a reason behind it? ( i hope lol)

Regards
Michael

There’s a few that will do it…a matter of choosing the right lender; me giving you a list of lenders will not help you as
1. Some of them only deal with brokers ( whole sale funding….)
2. You may not fit their criteria, so chance of rejection can be high if you dont know their policy + too many credit hit will not help your case

Example; one…[Read more]

Good question, but the anw lies in how risk adverse and financially comfortable you are.

1. If you buy NOW you have the possibility of riding the capital gain wave should the property go up in value— however you may struggle financially as the property is most likely -ve ( given your capital growth strategy) especially if any of you lose your…[Read more]

Terryw wrote:
For the amount of work and risk involved I would think $600 is extremely cheap.

Def is….
I normally pay $850-950. ( reports charged as per required)

Regards
Michael

$600 is a fair price for metro NSW,VIC and QLD.

Regards
Michael

If the bank allows you to cross, then that means you have enough equity to have stand alone mortgage without crossing…..so you just have to simply ask them NOT to cross…simple as that.

Regards
Michael

It all depends on your overall strategy…easy for me to say but ill give you an example.

Mr and Mrs smiths strategy is to make $100,000 in capital growth…to further invest into another IP.

– 2005 buy a $400,000 property with I/O to improve cash flow so can purchase another IP sooner etc…
– Since it was done as I/O rent = so only need to…[Read more]

Hi,

This is the first time i heard of this term….reading your response it doesn’t make sense…if the borrower is having financial problem with one of the loan then they most likly would have problem with the another one as well given it’s with the SAME lender and SAME security? just a different loan type….

Regards
Michael

Modern 2 bedroom with carspace in Forest Lodge will set you back around 600k..my personal thoughts on this purchase:

1. Forest Lodge don’t need a car space…no demand for it + hard to rent it out separately since it’s not that close to CBD + plenty of bus….you be paying an extra $50,000 for a car space and it will not give you the return your…[Read more]

Henry Adams wrote:
ok, can anyone here share what we should be asking to the mortgage broker before we sign the deal with them ?
I’m curious to use mortgage broker to find me a good loan for my IP rather than visiting the Big4 personally myself.

1. Fee’s involved if any
2. Number of lenders they have on their panel
3. Top 6 bank they use
4.…[Read more]

To know if a finance would approve the loan or not; you need to find the flood prone ratio for that street, it be on the sale contract or on the council website ( under water/ flood management)

Flood ratio:
1:200 or greater – you be ok 90% LVR possible
1:150 – Have to be careful which lender you choose
1:100 – Avoid LMI if possible, however if…[Read more]

Spoken to a commercial valuer, with most Industrial factory they will value it as vacant due to high vacancy rate due to the recent QLD floods…..however some valuers will still consider as tenanted if:

1. you have a 5×5 renewing lease or more
2. Solid tenant ie the tenant is a franchise and has a well known brand but most importantly also…[Read more]

Jen sorry to be the bearer of bad news-
1. You need more income to service the loan
2. LVR needs to be under 80%

Regards
Michael

JaSin66 wrote:
I tried http://www.ratebusters.com.au  max LVR 90% they said 4717 was out of their jurisdiction but they are processing it now,.

This is not good, it means they will reject your 90% LVR but still have a “credit” check done so it’s harder for you to move and shop around.

—-

Firstly postcode 4717 is def under 80% LVR, you will not…[Read more]

Hi,

Firstly congratulations on your purchases, but first thing first…you need to set up some kind of protection and buffer, as i see you may have few issue that may come up

1. Your applying for a construction loan- a lot of $$ will be used here, cost that isn’t part of your building contract ie flooring, gardening, fencing etc…expect to…[Read more]

I would say look at the location.
I seen a 120 squ meter Terrance in Newton (sydney) rent for the SAME amount as the property next door which was only 72 squ meters…The area had no demand for large spaces ( all uni students + single working professional).

No point building a average, if it’s not the average for that area.

Ie 3 bedroom home…[Read more]

Renting a house to uni students:

Pro:
1. High rental return ( room by room)

Con:
1. Damage to the home is likely
2. Not a lot of agent will take this up, you will have to self-manage
3. Tenants issues – Theft, dirty, don’t get along, noise
4. Insurance won’t insure
5. Can not declare to the bank in term of serviceability/ affordability
6. There…[Read more]