A few quick points:

1. What is your purchase price budget?

2. There is no problems in getting a loan in 3 names (all 3 also need to be on the title) however you have all the problem associated with having 2 other parties (albeit family) on the investment.

3. Just because you can put a Granny Flat in the back doesn't mean its a great idea and…[Read more]

If your property is 1100sqm why on earth are you doing a GF and not a dual/triple occupancy?

Regards

Shahin

Wenty is my home town! $75k is cheap though. 

What about site costs, air con, kitchen appliances, wardrobes, rainwater tank?

One thing I will say is that you have limited space with GF's so make sure the design is spot on.

Regards

Shahin

Ok so draw upon the equity against your apartment at say 90% – the LMI will not be huge and try and keep the LVR of the new purchase to under 90%. I would not recommend you going to 95% on the new loan.

Regards

Shahin

1. Advantage of going to an IO loan versus a P & I is predominantly increased cashflow and ability to use the surplus of funds which you have accumulated in your offset to fund you for your next purchase and so on. You want to keep this debt at maximum as it is 'good debt' i.e. tax deductible.

4. Ok so you don't need to add your partner to the…[Read more]

Ok I will respond in point format:

1. First thing to do is change your existing mortgage to Interest Only and have a linked Offset if you haven't done so already.

2.. Second thing to do is order an upfront valuation to determine the exact value of your apartment – it may be more or it may be less. Either way is crucial as it will tell you how…[Read more]

Double story for $400k? I do have a contact for the CC but I am yet to see a developer make money on the CC. Also you do not have enough deposit to do what you want to do.

Regards

Shahin

Ok. St George have a neat option whereby you can split the portfolio loan. 

Having an enquiry on your credit file is not a bad thing per se – it becomes an issue when there are multiple hits in a short period of time (short period could be up to 12 months.) 

I had an interesting one last week where an application was declined even though the…[Read more]

I like to keep things separate so each account relates to a specific property rather than having one account that relates to 2 or more properties.

Is the LOC with St George by any chance?

Regards

Shahin

What are you specifically trying to gain knowlegde in? 

The forum is a good mentor and will save you plenty of dough.

Regards

Shahin

Plenty of places that will give you cashflow positive from week say 3. You may need to be comfortable with places that are regional or interstate. 

If you are able to renovate properties then there are decent properties out there.

Regards

Shahin

The lender will classify you as self employed as you are the director of the company. 

What is the issue exactly with being self employed vs PAYG? Are you not able to provide adequate documentation or is there an issue with servicing?

Regards

Shahin

I would make a comment but all I would be doing is regurgitating what Freckle said. The only thing I would add is a question which is what type of play is this because it doesn't look good from a cashflow play, a CG play or even a development play.

What are you trying to achieve?

Regards

Shahin

You cannot determine tax benefits without knowing your income. Based on the above figures you would be looking at approx $130 per week negatively geared on a rental of $280 per week and $110 per week negatively geared on a rental of $300 per week. This doesn't take into consideration negative gearing benefits or any possible depreciation…[Read more]

I use a lot of different research tools – one of the more common ones I use is this:

http://house.ksou.cn

Regards

Shahin

The total cost which means the purchase price as well as all the upfront costs such as stamp duty, legals, LMI (if applicable). This will give you a true reflection of the ongoing net operating costs.

Regards

Shahin

You need to factor the full amount including the deposit when running the numbers. A lot of people place a 20% deposit and only calculate the outgoings based on the current loan amount and they do not consider the interest on the 20% deposit which you could be earning if parked elsewhere.

Regards

Shahin

There is a reason why the services of certain professionals (any professional) is cheap.

Regards

Shahin

Definitely get a few opinions. In most areas (and like with most things) it pays to get an excellent REA rather than a mediocre one. Since you have already been through the process of building it sounds like you may not need any advice on this.

If you are converting your PPOR to an IP I would be cautious of paying too much of it down as it will…[Read more]

Like any bank ME Bank have weaknesses too so its important not to just chase rates.

Regards

Shahin