walksy05 wrote:
What do you mean by postcode restrictions?

Depending on the location of the property (particularly those in rural or regional areas), lenders will impose loan amount or LVR restrictions or both. 

What is the postcode of the property?

You can't claim the redraw amount as you will be in trouble if the ATO finds out. Why on earth are you with bankwest? 

BTW – I think its good the plan you have is good and its also good that the loans are IO. Make sure you have a linked offset when you do the PPOR purchase and have the funds sitting there since that loan is not tax…[Read more]

Not sure where you are buying a house for $105,000 but there may be postcode restrictions. However, there is a way you can still purchase the property with those numbers. It does depend on the overall strength of your application.

Hey congrats you finally got there – didn't you have some issues with the builder if im not mistaken?

How much deposit do you have and what is the purchase price budget?

On my way of finishing one of my developments after 2 long years and now heading towards a few sites in Newcastle way to develop. It's becoming harder and harder to find development sites due to competition from builders and the increase in knowledge of every day investors. 

The redraw amount will not be tax deductible which is why you should always use the offset account when converting a PPOR into an IP.

What is the plan after the PPOR purchase? Will you be purchasing further properties or converting the PPOR into an IP again?

I have a couple of contacts for my properties – what is the size of renovation or what are you renovating?

It sounds like you have been cross securitised – I would fix that up first.

If you are going to purchase a new property then 'borrow' 105% instead of using cash so that you maximise the tax deductibility. 

What is PR?

CBA's 4 and 5 year rates are very competitive and only ING's 5 year rate is better than CBA by 10 basis points however I don't think its worth the switch.

If you are planning to draw upon equity then you do need to understand the risk of fixing with CBA, then ordering a valuation and the valuation potentially coming back poor. This will restrict…[Read more]

Go west I say – Perth that is!

You have a healthy budget and a good deposit amount. This means you have options. Map out a few scenarios and look at the numbers – see which one adds up. For example, do you buy an established property out west or semi regional with scope to create dual income whilst renting out close to the city? How do these numbers look against an OTP? 

What…[Read more]

most lenders have a genuine savings policy which means that you need to save at least 5% of the purchase price over a period of 3 months and some have a no genuine savings up to 95% but entry into these lenders is tough and pricing is not as competitive.

LMI is a once off payment that can be added on top of the loan. If its an investment property…[Read more]

Whats your budget and deposit amount? 

No no no. Lane Cove has tons of OTP's and all are high strata, cheap finishes and poor CG potential because its so over priced. Plus the dwellings are incredibly small. 

Why are you doing this? Vals is not going to be an issue per se for lane cove properties but future CG is.

1. Go for a variable instead of a LOC
2. Go IO with a linked offset
3. Even though you are saving the 20% deposit to avoid LMI – I would be looking at going up to 95% LVR (if the purchase price is around the $250k mark) and keep the rest in a savings account. The LMI premium will be tax deductible for the first five years or the life of the loan…[Read more]

I think it will hit 90 sooner than later? Keen to hear everyone else thoughts?

I have yet to see one come back even close to the actual land value.

Some banks are offering less than 4.99% for their 2 year fixed rates. 

BH is rubbish which is reflective in banks' policy. I would look at a price range of at least $120k -$150k before considering investing in an area.