No. Why not rent out another property and use this property as an IP? You just need to be wary of CGT implications in doing so. 

Regards

Shahin

Selling has associated costs so I would only consider selling if you can use the capital to invest in something that has far greater prospects in terms or cashflow or CG or both than the current property. 

What does the numbers look like when you compare the new property vs the current unit?

Regards

Shahin

Is your question based on the lender's take on negative gearing or from a taxation point of view?

Regards

Shahin

What they have said is correct as long as the loans and properties are separate. I believe that they are saying borrow the whole amount i.e. 105% of the purchase which you should do so you maximum you tax deductibility. The only thing I don't understand is why you are using $80k instead of around $110k. That way you don't pay LMI (which is what…[Read more]

The difference is that they are not constantly pedaling their own agendas.

Regards

Shahin

Come on guys you work in the same company and you are giving high fives to each other on the same post. That plus you are the only ones that seem to make comments on your own posts. 

Regards

Shahin

There are funders that will do it with no presales but the interest is around 10%

Regards

Shahin

Its a need in a haystack solution. So many things can go wrong. Good out of the box thinking but I don't think its a realistic option.

Regards

Shahin

If there are any extensions or additions made to the property make sure you check that it has council approval. Have your solicitor or conveyancer review the COS and check for things like easements and caveats which are common problems etc. B and P are also very important. Make sure you get a good one done as like with most things you get what you…[Read more]

Is it a unit or a house?

Regards

Shahin

Cessnock, Maitland or you can manufacture dual income in several areas around Newcastle.

Regards

Shahin

Firstly your plan is good especially in that area. There are a couple of good places for develop in WA.

Back to your question – one answer says deposit and the other is servicing. You can somewhat get around servicing but not deposit. Only thing I can think of is to do a delayed settlement on the new purchase but you are saying that you are not…[Read more]

What do you mean by your finances are tied up somewhere else? Do you mean deposit wise or serviceability or something else?

Regards

Shahin

You have about 3 or 4 options so do the numbers. For example, you live in the property for say 3 months and then convert this to an IP. This will give you options in terms of CGT but a loss of rent of $6k (lets say $450 per week rent over 3 months). 

The reverse option is to use it s an IP vehicle day won and earn the $6k but you will be up for…[Read more]

Love it. There are tons of companies promoting negative gearing and tons promoting positive gearing so some guy comes along and thinks lets promote a niche like neutrally geared property.

Whether a property is negatively, positively or neutrally geared is slightly irrelevant as the end goal is CG. I hold very negatively geared properties but…[Read more]

Billy – this is a Homeside deal. Homeside have their own DUA under $1mil and they do not have a postcode restrictions hence why I initially asked if its under $1mil. If everything stacks up then you will be ok. If you just started your job, have multiple credit hits, bad credit history, then no. Get your broker to assess your application to see if…[Read more]

Resimac will do it but they charge an arm and a leg – Homeside is the best lender for this scenario. LMI is not an issue – they will go to 90%.

Regards

Shahin

Yes. If the package is under $1mil – Homeside will do it (assuming everything else stacks up of course such as servicing, credit history, etc). 

Regards

Shahin

Depends – is the total package under $1mil?

Regards

Shahin

The lazy response is go see a banker or broker but here is some information to get you started. You have the option of doing development finance either on residential or commercial terms. Residential rates are cheaper and commercial rates are higher. LVR plays a big part in both scenarios. Due to the number of dwellings this would be deemed…[Read more]