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  • Profile photo of Mick CMick C
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    Possible.

    But you want a mixture of CF+ and good CG properties, as the CG properties funds the equity and CF takes care of the serviceability.

    With your current cash, how many can you buy with an 10% deposit + stamp duty— presuming none of the properties goes up in value in the next 3 years. 

    Sit down and look at your financial and where you see yourself in 2,3,5 years time and work out a "investment strategy" and game plan with budgeting. 

    Mick C | Shape Home Loans
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    Profile photo of Mick CMick C
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    Agree; most houses built over 30 years ago will have some form of asbestos. Out of 1000's of  application i have only probably seen 1-2 bank valuation where the asbestos has caused some grief and this is because the property was under going major structural renovations and the funds/revalue was required as part of the "As if  completed construction valuation " and  that particular property was covered in asbestos the cost to removed asbestos was not taken in consideration in the "renovations/construction cost"  

    Having said that it's always smart to take asbestos into consideration for any purchase as the cost to remove asbestos is hefty+ the lack of flexibility too renovate can cause some issues.

    Mick C | Shape Home Loans
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    Profile photo of Mick CMick C
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    CBA is charging $95 once off too "slow" down the number of application that receive for the switch. CBA being one of the largest lender with a massive customer base- you can imagine the number of calls/request they would get if it's free to switch :)

     

    Mick C | Shape Home Loans
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    Profile photo of Mick CMick C
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    TheFinanceShop wrote:
    Why do you need to buy 10 properties in 1 year or however many years? Focus on quality of product (even cheaper properties) not quantity. 

    ^ Sage advice. Quality over quantity – it's not a race lol.

    Regarding buying x number of properties in a short period of time, it's only possible with a massive amount of equity built up over a number of years with a good foundation property- the only way to consistently bring forward even a 10% deposit for each purchase is via equity only – cash is simply not sustainable. Having an high income is important but really secondary as it can be made up over time with increasing rent and also buying at the right yield.

    Positive cash flow tends too be the favor of the year; but don't forget a mixture of at least one good capital growth investment or PPOR is equally as important for a balanced portfolio as this CG property is normally the one that determine how many properties you can afford too buy moving forward as it should be your foundation property for "Equity"  ( not saying CF have no CG…but limited and usually slower CG)

    I settled on my 4th property purchase for this year on the 30th of September, and in the process of waiting for settlement on 3 more ( Mid and end of oct – Nov) – so yes buying x number of properties in a short period is possible…but i was only able to achieve this because i have 2 properties that i  bought in 2007 and 2004, both have gone up in value -considerably ( equity). Note till this year, i haven't bought a property since 2007 ( because of serviceability issues/ new business) – so it's really not a race all about timing based on your current position and strategy.

    Personally i prefer too buy in an increasing market ( CF properties) – as it converts too quick equity after purchase; even if im buying 5-10% more then compared too 6-12 month ago and for an depressed market i focus on CG properties. 

    Mick C | Shape Home Loans
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    Profile photo of Mick CMick C
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    For Sydney, We refer our clients to D and L Partners ( David Lim); great property accountant and experienced in business accountanting as well as trust. 

    http://dandlpartners.com.au/index.htm — Office: (02) 8958 5093

    Regards 

    Mick C | Shape Home Loans
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    Profile photo of Mick CMick C
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    Approach a local broker and ask them if they are wiling to take you up as a mentee …like any business it's very difficult in the first 12-24 month, but if you got the heart and passion for it the money will come.

    Mick C | Shape Home Loans
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    Profile photo of Mick CMick C
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    Trust won't improve your borrowing capacity. It however provides asset protection and a possible tax efficient method to mange your taxable income( 2 main benefit of a family trust).

    Mick C | Shape Home Loans
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    Profile photo of Mick CMick C
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    Current loan – $300,000

    Equity loan – $100,000

    New loan ( 80% of purchase price $400,0000- presuming we are avoiding LMI ) – $320,000

    So total loan = 300k + 100K + 320K = $720,000

    —-

    1. Yes you can have the new loan with a different bank

    2. You have access to $100,000 equity, and since the new loan is only $320,000- your using $80,000 of the $100,000- but remember you need to pay for stamp duty as well and other cost which can be used from this equity loan.

    3. Tax consideration and loan structures  needs to be taken in consideration to maximize the profits and cash flow.

    Regards 

    Mick C | Shape Home Loans
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    Profile photo of Mick CMick C
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    Your file is not as simple as a yes or no….

    I suggest you sit down with a broker or a banker and go over your situation… not trying to be bias , but a broker will def be a better option as your husband is self employed and has a credit default, so your  file may not sit well with a few traditional banks…

    Regarding revalue- that's fine, as long as your "provable" income can match the extra loan

    Regarding buying our your parents portion of the loan- also fine…but take in consideration stamp duty, capital gain and tax cost.

    "We would look at buying commercial property to rent to business" – Rent to our business?? or rent for your own husband to use  (SMSF may be more suitable for this option)?

    Mick C | Shape Home Loans
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    Profile photo of Mick CMick C
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    I always suggest my mentee to use Kaplan education. They also offer a face to face training – All states.

    As Tom mentioned, MFAA has a list of preferred training providers on their website as well. 

    Mick C | Shape Home Loans
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    Profile photo of Mick CMick C
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    Yes i would consider that as internal renovations. 

    Mick C | Shape Home Loans
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    Profile photo of Mick CMick C
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    Not all rooms and renovations require council approval, especially internal renovations; simply give your council a call or flick them an email and they will let you know if that room requires approval or not, and the requirements.

    Mick C | Shape Home Loans
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    Profile photo of Mick CMick C
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    Certificate of title.

    You can order one online for $0-14 depending which state.

    Mick C | Shape Home Loans
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    Profile photo of Mick CMick C
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    ^ adding on..set up new loan/purchase as interest in advance to absorb most if not all of the CGT 

    Mick C | Shape Home Loans
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    Profile photo of Mick CMick C
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    @shape
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    1. Is there enough time for me to get my loan approved before 2nd july?

    Depends on how complexity and situation + the chosen lender

    2. Can i use conditional loan to purchase the property? has anyone purchased property like that before?

    I'm presuming your mean a conditional pre-approval?? if so…yes you can.

    3. if i pay 10% deposit on the day cooling off period expires, how risky it is?

    Without finance approval- very risky.

    4. Can i apply loan from 2 different banks? Will this affect me in future if i need to refinance loan?

    If your situation calls for that then yes…it's best you don't as it will affect your current approval BUT if you must you can, but make sure the 2 banks uses different LMI insurers i be cautions of multiple credit hits..meaning if you have a lot of hits on your file already then i would avoid applying for multiple approval, instead it may work better to apply for a 2nd valuation rather then approval ( depending on your complexity)

    5. Can i still ask for more than 10 days extension in cooling off period? if so what do i need to tell the vendor?

    Yes you can. very common- Tell the vendor the truth- you need more time for finance approval. Request this via your lawyers. 

    Thank you.

    Good luck :)

    Regards

    Michael 

    Mick C | Shape Home Loans
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    Profile photo of Mick CMick C
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    Pop Jamie an email and he will sort you out.

    Doesn't hurt to get a personalized  expert opinion.

    Mick C | Shape Home Loans
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    Profile photo of Mick CMick C
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    Because you don't have 2 years worth of docs/history- most small business fail within the first 1-2 years. 

    Some banks like St George, Westpac and credits unions may accept 1 years ABN as full doc but it will depend on your company's structure and industry – but really case by case.

    Mick C | Shape Home Loans
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    Profile photo of Mick CMick C
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    LVR needs to be under 85%…preferably under 80% ( as only one lender will go to 85% on 1 years ABN without charging you too much)

    Mick C | Shape Home Loans
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    Profile photo of Mick CMick C
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    Was it ever rented out/tenanted? if so then you will be able to claim the expense ( as long it haven't been untenanted for a long period of time).

     However if it's never been tenanted since you bought the place then it's NEVER been "profit/income producing".

    Mick C | Shape Home Loans
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    Profile photo of Mick CMick C
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    @shape
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    First work out the following;

    1. Your current cash flow position

    2. if you buy an $X amount property how will your financial position and cash flow look like- what impact does it have

    3. Are you after positive gearing or more towards capital growth – or more with your current financial position and looking at what resource for the next 2-3 years which strategy are you more comfortable with

    4. Budget

    5. What's your risk tolerance – open to different areas? 

    6. Any financial and life style changes ( career change, marriage) that you expect in the next 2-3 years and how will this impact your investing style and budget 

    7. Do you have a "insurance" buffer in place ( cash, family support etc..)

    8. Hows your resource like? Family support, partner, cash, job security

    Most importantly DO NOT RUSH IT! and don't be afraid to ask for help.

    Regards,

    Michael

    Mick C | Shape Home Loans
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Viewing 20 posts - 81 through 100 (of 1,097 total)