nice house! nice and big…

I dont know about changing the floor plan to add value; wouldn’t it make more “financial” sense to do renovations and touch up the existing place to make it more attractive to home-owners who are after a dream/GRAND home…

ie – Make your family area connect to your outside balcony – turning it to an OPEN alfresco!!…[Read more]

dame

Maybe a real estate agent can answer this…

But from a investors point of view – If this is a good tenant ; rent paid on time, stable job, takes care of the home, good family…i would just reduce the rent slightly. Because at the end of the day if the tenant leaves your friend would lose 2-3 weeks worth of rent MIN ( after paying agent…[Read more]

Get it all back from the Insurance company- if your covered for floods…

Regards
Michael

andrew.os wrote:
Can anyone tell me if they have been successful in establishing a trust with a company trustee and then borrowing in the name of the trust with a company director as the guarantor?  Currently every broker I talk to informs me that the trust can't borrow money, but rather the loan must be in my name with the trust owning the p…[Read more]

Hi maccoz,You wont be able to get the loan based on "end value"…However there are lenders that offer preogressive valution and increase.Yes residental is possible, but you must have a strong deal- this is something def for the BIG 4 plus some of the bigger credit unions- the smaller credit union won't tocuh 3 units construction.- even if they…[Read more]

Kapilv WELCOME!

I have argued in length with the banks and the bank’s underwriter and the LMI provider about this same issue! sigh….
Here is their argument…which mind you, does make sense; but as you can read later on THEY have created this problem!

1. Student accommodation influx in rent and can not be supported- meaning during certain…[Read more]

Welcome Eric

Yes re-fin as 2 loans:

Loan 1
A. For existing place ( which will turn into a IP)
B. cash out for your deposit ie 20%… ( which will be part of your PPOR loan )

Loan 2
A. New PPOR loan for your new place, using the deposit from loan 1-B.

Regards
Michael

Yes agree. if it’s going to be a IP…it will contaminate the loan with a re-draw in terms of tax.

Refin with 2+ loan split would be the smarter option.

Regards
Michael

ps. ANZ breakfree loan product is not bad for this sort of strategy. RegardsMichael

Yes they would, But you must have a LOT of equity to suport this sort of lifestyle and investment. I currently have 7-8 clients using this to build and buy all their properties. You would be looking more at the BIG 4 for this sort of strategy…,the small banks tends to get scared espeiclly when you have over 1M. RegardsMichael

eric_agape wrote:

If you went to your local bank and asked this same question; what they would tell you is to bring this loan over to them and then they will allow you to take up your 2nd loan using your first home as security – X-cross. A big NO NO! How would you go about this problem? [/quote]Hi Michael,I have a similar situation and have to…[Read more]

It depends on the council, i mean in my area ( NSW- hornsby) we are allowed subdivision of land and then construct is fine, as long as it meets the land size requirement etc…

If you can’t split the title prior to the construction- you will have a problem….the only way to finacne this IF the bank allows it…is to push both loans thru to the…[Read more]

Scott- that is true you cant really “have a set % on how much you can increase by” – i wont argue on that.

and true 5% is a huge amount to ask for a increase…but if the area your got has a spike in demand- then why not ask for 6?7?8%? it’s within the contract and agreed upon by the tenant.

FYI -…[Read more]

It depends on the area and demand…

i have 3 IP:

1- increased by 15% ( 6 month) – Sydney CBD apartment – of course all agreed upon by the tenant
2- increased by 10% (6 month )
3- 5% increase only

Regards,
Michael

Luke- That is so true!!!

I have been burnt in the past, lesson learnt.

Regards
Michael

Welcome SJP,

Yes you can but there are restrictions, firstly you will need:

1. A solicitor to prepare a contract to say your buying this off the plan and the terms and condition …ie – if the building does not finish within 6 month or what ever the contract is void….end of the day there is a lot you can put into this contract, on yours and…[Read more]

PM – would make it less stressful …but in term of return on your property …his fee might eat up any profit you make- since it’s such a Small project! ( normally you hire a PM, if your building more then 6+)

Either way, if you got with a builder that does everything (including fittings and landscaping etc..) at a FIX price, you will find they…[Read more]

Set 5-10% Increase….CPI is only 2-3% not worth your time…

Regards
Michael

Keiko – it Depends on the deal and detail…So if you want either PMS some details or post it for all to share

I had a deal for a buyer who wanted to fund some purchase in the US, and it was for a purchase of a Business in the US as well…one would think this is a “commercial/ private lending” deal…But you be surprise to know it was placed…[Read more]

Dust27- your welcome and thanks for the feedback/ testimonial on our company website

Hope to finance your next adventure!

Cheers