They are super conservative and servicing may be a bit tight. That is because they are a building society. 

Regards

Shahin

Also change your current loan to IO if its not that already and also have a linked offset to your PPOR loan of $329k. Ensure all credits go into this account including future rent money since this is a non tax deductible loan.

Regards

Shahin

I would do the following:

1. Since you have paid LMI already stick with your current bank and draw upon the equity. Do this by creating a separate loan account. So you will have 2 loan accounts, one in the amount of $329k and second in the amount of $70k. I would have the second loan as a std variable with a linked offset and have the funds…[Read more]

Whats your strategy? cashflow, CG, development?

Regards

Shahin

Right and now for the cons of OTP:

1. Valuation could come back lower upon completion which means you are stuffed
2. Strata is going to kill you and it will only increase
3. Quality of worksmanship is unknown until the unit is complete which in most cases is too late
4. In many years time you new property is not different to the property next…[Read more]

Are you currently working? If so are you PAYG or self employed? 

Regards

Shahin

You can go to 70% but its has to be an A+ Application.

Regards

Shahin

Hi Chris,

Best to speak to an accountant but my understand of the law is that there is no set time frame that the ATO has noted. The ATO states that it must a 'reasonable time'. 

So my understand is that it could be as little as a month. That this as an example, I decide to live in the property and I do this. I have bills going to this address…[Read more]

I just don't believe they are mate – I think there is something thats not right in your calculations.

I didn't understand the last part of your question – what do you mean by 'having zoning'? What type of zoning in particular?

Regards

Shahin

Making those small changes will not be a huge help but in situations like these you just need to manage a tight ship. Good luck and stay determined.

Regards

Shahin

I will buy you a 6 pack if you can find a unit in Guildford that is not negatively geared.

Regards

Shahin

Far out – ok so definitely negotiate the rate of 5.81%. Just a question – if cashflow is tight why do you need the offset (I can only imagine that you will not be able to save a lot to make it worthwhile)?

Regards

Shahin

What is "IR"?  

Also you say Guildford is not negatively geared – how are you calculating this exactly because it doesn't sound right to me.

If there is an over supply why do you think this will drive prices up?

Regards

Shahin

What do you mean by "bad credit rating"? Is it a default? Is it a bankruptcy? If you provide more details we can advise what is and is not possible.

Regards

Shahin

What do you mean by current credit rating? What is wrong with it?

Regards

Shahin

1. All three have train stations but Merrylands and Guildford are not on a direct line to the city however Granville is. 

2. Guild ford is very industrial albeit its changing but my 2 cents is that it is seriously oversupplied. Council has made it extremely easy for every man and his dog to built units or duplexes. 

3. Granville is a different…[Read more]

Couple of things in point format:

1. Why are you paying 5.81% – you should be getting a much lower rate. Call your bank and be put through the discharges team. Negotiate a rate of around the 5.50 mark. It will save a bit per month.

2. Some lender do offer offsets on fixed loans (such as Adelaide bank). Alternatively and a more common/simple…[Read more]

Whats your budget? Also avoid Guildford. Stick with Granville and Merrylands.

Regards

Shahin

To answer your question – it purely depends on the lease. Some are 5 year leases and some are 99 year leases and everything in between. 

Be wary from a finance perspective that the property needs to be O/O for most banks (only 2 make exceptions).

Regards

Shahin

Pros:

1. Good cashflow and net yields

Cons:

1. Low LVRs
2. Limited CG
3. Finance is hard to get depending on a number of things such as whether or not the lender has already financed up to 25% of the units in the complex, whether or not it can be O/O, etc.
4. Resale is hard for the reasons above and your market is very limited
5. Valuation – I…[Read more]