Some things to take into account:

– Quality of asset (building and pest inspection report, position and size of house, land area, valuation, etc.).
– Location (population, demographics, industry, schools, shops, public transport, surrounding houses, demand for rental properties, etc.)
– Tenants (existing tenants?, history of tenancy, demand for…[Read more]

Welcome to the forum. Good post to kick it off.

Some risk management strategies may include:

1. Income protection insurance.
2. Rental income insurance.
3. Fixing a proportion of debt.
4. Multiple income streams.
5. Diversifying location of IP’s (and type).

Perhaps the best stop loss is probably the bank. They would not lend you $5.5 million…[Read more]

I think that he’s the best presenter that I have ever had the pleasure of listening too.

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

Hi Rob

To give you an idea.

Samll practice = $100 – $200
Medium practice = $200 – $350
Big 5 = $500+

I don’t think individuals would need to pay anymore than $250.

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

Hi Judith

You don’t necessarily have to have the full deposit. You may be able to negotiate with the vendor by putting down a small deposit and paying the rest at settlement.

However, there is nothing stopping you setting up a loan against your home now to allow you access to monies to pay a 10% deposit (this will also give you more bargaining…[Read more]

Hi Diana

I’ll have a go…

If you are an Australian resident then you will have to include the taxable gain as assessable income (and pay tax at normal marginal rates). You will get a tax credit for any tax that you have paid in the UK.

If you are a non-resident then you will not have to pay CGT as the asset does not have a connection with…[Read more]

Hi Delight,

My pleasure. Investing is a team sport. If we can all help each other than that’s great. I wish you the best success with your investing.

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

Some lenders use the existance of an ABN as support that you are actually self employed (especially when applying for low doc loans).

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

Hi Coslett

Yes, you will have to pay GST on commercial property. There is an exemption if the property is being sold as part of a going concern (i.e. purchase of a business).

GST is normally not payable on residential property.

If you will be borrowing the money to pay for the GST (i.e. financing 100%) then you should consider the cost of the…[Read more]

There has been a couple of threads on these:

https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=2190

https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=1630

https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=1462

https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=1259

Cheers

Stu

Property & Finance News
at…[Read more]

Hi Picja1

As I said, I didn’t mean to have a go at you personally.

I think that solutions need to make sense. Sure, anyone can borrow money it just comes down to interest rate. But sometimes it’s not reasonable and sensible to borrow additional funds.

If the numbers work assuming you are paying 8.5% (plus all the costs) then sure go for it. H…[Read more]

Picja1 – I’m going to have to disagree with you… in a big way!

Access superannuation? There are so many things wrong with this comment I don’t know where to begin.

Borrow 90%? The interest rate on this would be over 9% on a low doc basis.

Second mortgage – same thing – interest rate is too high.

My first comment to members of the forum is do…[Read more]

Hi Chris

Lenders consider anymore than 4 – 6 units in the same block/complex as a commercial interest and therefore will not finance these through normal residential products.

The bigger lenders will generally accept more units. E.g. NAB will sometimes do 6 (which is the highest).

If its assessed as commercial then the rates will be around 7.3%…[Read more]

Remember it’s only a “rule of thumb”. It was never meant to be an acid test. Any rule of thumb is a guide only.

If the numbers stack up then go for it.

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

Hi Melanie

quote:Have own home worth $200K, loan of $100K. Want to buy new O/O home worth $300K and keep current home as rental. If you refinance current loan back to $180K and use extra $80K as deposit on own home then despite the old home now being a rental, you cannot claim the interest on the extra $80k on tax as it’s PURPOSE is for your new…

[Read more]

Just a couple of comments:

NAB will do up to 6 units on a residential mortgage (but this is on a case by case basis).

If you can’t get a lender to do it on a residential basis then a commercial loan is probably going to cost you around 7.5% p.a.

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

So if understand you correctly, you refinanced to get access to an extra $2k, your interest rate went up from 6.57% to 7.40% and you had to pay the broker $3,300.

Not a very good result really.

Firstly, if the broker is ethical and a member of the MIAA (www.miaa.com.au) he/she must disclose his commission to you upfront. You should have known…[Read more]

Lenders rationale for reducing the LVR on high loans is because they are normally secured by higher value properties. As such the lenders consider the pool of potential purchasers to be significantly smaller for properties worth $800k as opposed to properties worth $300k.

However, NJ your situation doesn’t seem to make sense unless your using a…[Read more]

My pleasure Del! []

Yes, NAB made the most nonsensical decision I have ever had the misfortune of being part of. I don’t have any issues with naming them because their assessment was INSAIN!

That is good advice Del.

One solution is to use pre-approvals. This will also speed up unconditional approvals and minimise any problems. (I’m sure Scott S…[Read more]

“What goes around, comes around” – one I live my life by.

“A fool and his money are lucky enough to get together in the first place” Mr Gordon Gekko (Wall Street)

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au