The $600K limit is for major cities as well, it is $500,000 outside of these areas (from memory, Sydney, Brisbane, Melb).

I also cannot see the point in having a separate contract as you would have to pay cash for the shed.

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Samuri

It is still very hard for a non resident to get finance – especially for a non owner occupied home.

Shinsei do lend to non residents but only if they will live in the home.

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When you buy property, you don’t pay the deposit to the bank, but to the vendor.

If they ‘lend’ you $50K, they will not actually give it to you, but will take it off the price you have to pay upfront. At settlement the bank will lend you the remainder of funds

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In Vic I beleive it is the aggregate value.

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(ii) CC is not so terrible, but it can be a pain in the butt if your currently lender stops lending to you. If you have equity but they won’t lend, what would you do? Most would want to go elsewhere, but if everything is cross up, you can only go elsewhere after painful unravelling.

You can still borrow the same amount without cross collateralising.

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Or, use an independent buyers agent.

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I think the returns would have to be much higher for a risky business start up.

I have seen investors offering 15% pa for borrowing money for property related investments – relatively safe.

For most businesses I think you should expect more than 100% pa. If you are going to be making that much money, you could afford a hihg return.

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I agree with Derek, but more specifically beleive it is actually the date of the contract when the contract goes unconditional. ie you might sign today, but with a subject to finance clause which isn’t satisfied for a week. better check with your accountant to be sure.

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It would probably be cashflow postive, but that does not necessarily make it a good investment.

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You never lose the equity by selling, but you have to look into capital gains tax.

Now it would appear your apartment is exempt. You could probably sell now or within the next 6 years and still claim this exemption. But you can only claim one property at any one time, so if you had a period where you owned 2 properties, you have to chose between the 2 – for the main residence selection.

Better talk to your accountant. It may be wise to get an independent valuation done now.

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