It is very hard to judge property in general at the moment. There may be many years of no growth or flat market, depending on the economy overall.It is even harder with a serviced apartment. Many factors will influence price. A major one is the attitude of lenders as if you can't get finance then it will be hard to sell.I think you are silly to…[Read more]

These days banks don't trust their clients with money. Usually a max of $10,000 is all they allow out without proof of where the money is spent. Often with ANZ a statutory declaration is all that is needed for small amounts, but if you tell them it is for renovations then they will ask for quotes.

could be ages with ANZ. maybe 7 days or so.

If quotes were a condition then it will go back to the assessor for sign off once the quotes are supplied – but they shouldn't need to reassess it all again unless there is a  long time between asking and the supply of the quotes – or if your situation has changed.

Yep. You just have to put a condition in the lease that allows you to sub-lease it out.Also need to be careful if you cannot settle or sell the option you may lose all the improvements you have added.

What about offering vendor finance for the ones you are trying to sell?. ie you offer to lend them the deposit.Eg. you want $100,000. But arrange it so they pay $80,000 now and you set up a loan for $20,000 where they repay you over x years.(of course it will only work if your loan is less than $80k)

Yes, good idea. I think it is good to do as much research as you can yourself before you go and see the lawyers/accountants etc.

sometimes expected things happen. You may do all that work and then lose your job just before settlement and can't get finance. You may get sued by someone and have a bad credit report etc. If you can't settle then all the repairs stay with the house, There may even be some sort of delay with finance and you miss the deadline to settle and the…[Read more]

There sure would be some tax payable. Depending on how you do things it would be either income tax or CG.

HiYou will have to apply for a variation to change to IO and they may charge you a fee, depending on the product you are currently on et.c

You could do that if you can find a seller willing. But remember if you cannot settle for any reason you have just renovated someone else's property.

hi DarrenYou can do it on a PPOR. But you need to be careful there. Best with an eg again.Say your PPOR loan was for $100,000 and you had $50,000 in the offset. You would have 2 choices if buying an IP1. use the $50,000 in the offset as a deposit.or2. pay the $50,000 into the PPOR and then reborrow it for the deposit for the IP.2 is much better as…[Read more]

yes, better in an offset for tax reasons. Interest would be the same whether money goes into loan or offset.

In that case it is a bit different.Paying down debt is good, but once you pay into a loan your money cannot be taken out again (eg redraw) without tax consequences.So I would suggest you set up a 100% offset account on at least one loan and continue to pay IO and then save all the extra money in the offset. You will continue to save the same…[Read more]

You are correct, but what about the tax implications?You would be better to pay down the home loan first as the interest is not deductible. If you pay the investment down you will end up paying more tax, while the home loan will remain high with you paying more interest there.

Looks like you totally misjudged when fixing 3 years ago. Rates have been much lower than 7.1% for most or all of that period. So fixing again now may catch you out again.I personally never fix now as I find you can never predict it correctly and it ties you down too much and you can miss out on opportunites – moving banks and accessing cheaper…[Read more]

look up the requirements. i think you will find it says something like you must move in within the first 12 months and live there for at least 6 months.

Do u have non deductible debt? if so you would be crazy to use PI on an investment

why buy something like that?being hard to finance means hard to sell which means low capital growth

This is how it works with tax.Profit = Income – Expenses.Income = rentExpeneses = cash expenses and non cash expenses.non-cash expenses are things you can claim, but not pay for directly. These can include:- Borrowing costs (sometimes these are added to the loan)- Depreciation of building- Depreciation of fittings- TravelCash expenses include…[Read more]