I'm subdividing a block of land and building a 4 bedroom house on each lot  in North west Sydney, turn key cost is $460,000 each so $920,000 for both and this is discounted already as im building them both at the same time. Medium – High quality finish.

– 4 bedroom
– 2 levels
– 2 Bathroom
– 310 sq meter living space
– Project builder.

I had 4…[Read more]

CONGRATS Jamie!!

^ yea you got the basic.

OTP has it's place, especially for units, so yes even though you can't choose the design it make sense especially if your buying a unit – imagine if a developer is building a 100 unit project and all 100 owners wants different design, that would be a nightmare! as the builder need to maximize the space + apply for council…[Read more]

Off the plan = Normally applies to units or "strata titled properties" with common walls and land , where one developer builds everything and sell you a lot/unit
Land and house package…or buying land and building your self – applies more to freehold/torrent title property. in this case you can normally choose your own builder and deign ( unless…[Read more]

effects application …which CAN in turn effect borrowing power if the bank you wanted to go with ( ie a good "serviceability lender" rejects your " application" .

Example: Homeside has a good serviceability model, however they do credit score…
Suncorp don't credit score but has a average serviceability model

Email sent to see how we can help + we have a few contacts we can recommend if your after a particular service. 

manadeep wrote:
Hi, 
I am a Sydney resident and have come across multiple serviced apartment investment opportunities. 
They are usually a studio with a bath and without a car park. 
Most offer a long term lease (5 – 10 years) with options of extending and a purchase price that is on the lower side. 
e.g. Here is an example 
Price…[Read more]

DerekLangan wrote:
Thanks Michael, your very helpful. I was wondering can you give me an honest opinion on this particular scenario. Say if renovations come to roughly $10k to increase the market value and I leave a bit of extra money to buffer so all together it may cost me $25K including stamp duty and LMI etc. Do you think it would be better…[Read more]

DerekLangan wrote:
do you think it would be worth paying a professional to give me there exact opinion on cost to renovate, or is there another way to evaluate the property to find out how much needs to be spent?

^ easiest option is to get a quote from a builder/handyman etc…
But it doesn't hurt to do some of your own research on cost as…[Read more]

DerekLangan wrote:
Well I was thinking after a year of doing some small renovations to bring the place up closer to the median price in that particular area which is around $220K and then getting it re-evaluated to loan off the equity and invest in a more expensive property. Would you suggest this to still be a bad idea?

If the market is…[Read more]

Personally… the rental yield is way to low for my investing style- even thought it's a >6% yeild..the return in $$$ figures is to low for my liking. UNLESS your buying the property below market value and there's a good chance for capital growth or to create capital growth + higher rental yield.

4 main strategy that i follow, that you may or may…[Read more]

DerekLangan wrote:
Interesting… Thanks Jamie and thank you Michael for your input in backing up Jamie's comment. What if I found a 3 bedroom property for $150K and it was currently being rented out at $200 per week? Would you say that woud still be a smart investment even with a $10k deposit?

Smart decision on not – depends on your overall…[Read more]

Agree with Jamie.
Nothing wrong with LMI, especially if it allows you to enter the property market quicker +if it's an IP, you can claim this over 5 years in your tax returns.

LMI would cost you around $6,500 for a 95% $200,000 purchase and all you need for a $200,000 purchase is $15,803 in total ( incudes 5% deposit + stamp duty) as the LMI cost…[Read more]

1. Speak to your bank or broker to work out how much you can afford/borrow
2. See if you can draw out some equity and make sure it's a split loan
3. Always better to use equity to buy IP2 as you can claim the interest as an expense + any cash oyu have would be sittign in your offset account reducing the interest anyway.
4. Only use the cash for…[Read more]

thecrest wrote:
Several banks have told me over the last 2-3 years that a residential property or equity  in one can be used as security for a commercial loan, in particular a loan to buy a motel freehold or leasehold, and in doing so would only attract residential % rate.
Is that still the case in the current experience of the Forum's finance…[Read more]

u36ma wrote:
Hi all,

I have a portfolio of properties which as a whole is running at about a $50/week loss.
I'm looking to find an easy location to get positive cashflow properties in a location of 30,000+ population (to make it easier for financing). 
/quote]

^ Try not to restrict yourself with a pop of >30,000 as not a lot of suburbs would…[Read more]

Chickenhawk6451 wrote:

1) Borrow 15% of the purchase price in the form of a personal loan, place 10% deposit, 5% for closing costs
2) Get traditional finance from a bank in the form of a Line of Credit Loan to the remaining 90% – 

Problem number 1- Your going for a 90% LVR loan and all your deposit and cost are borrowed in the form of a…[Read more]

Maple9 wrote:

My LVR is above 80%, can i also use guarantors?

^ guarantors – No, not for cash out/equity release.
However it's possible to go to 90% LVR on your current loan and still achieve what your after, but would def be a lot harder and expensive.

Maple9 wrote:

Or my LVR is below 80% after releasing the equity?

Perfect. As long…[Read more]

^ yes this is possible, but not all banks.

70k combine income is decent and is enough to draw out some equity…and given your trying to buy an IP – that's $15-20k worth of rent that you can add on to the cal ( for the new loan)