I wouldn't buy a studio regardless of the cashflow as the CG is statistically poor. What's the point of purchasing an IP that will not return you the CG?

That aside – there are LVR restrictions with that sized studio so there is a certain amount that lenders will go (depending on the lender). 

Also re your employment – is this something that is…[Read more]

Sorry I more thing – go with a lender that has their own DUA. Do not go with a lender that does not have their own DUA (e.g. Macquarie).

Regards

Shahin

Ok here is the thing – telco default are much better than financial institution defaults. Amount is also ok.

LVR is where you need to focus on. Under 80% you will have no issue with most lenders.

I assume that you cannot go to 80% and it must be at 90%. Firstly it needs to be under 90% so that's 89.90% plus LMI. There is no way you can go over…[Read more]

I have not used the above guys but what are they quoting you?

Regards

Shahin

It depends on a number of things – what is the:

1. LVR
2. Telco default amount
3. When did it happen and when was it paid

Regards

Shahin

Have you considered the potential of purchasing a negative or neutral geared property and turning it into positively geared property?

Also how are you calculating positive gearing?

Regards

Shahin

Your credit file doesn't state that the loan has been declined or approved. 

However most banks have computer credit scoring engines. This is a complex formula that not even the lender's credit team can explain to you. There are many many things that the formula (for a lack of a better word) takes into consideration and weighs up. Obviously high…[Read more]

You can never have enough storage – but im married with children so perhaps im biased.

Regards

Shahin

Depending on which state you are in you will require at least 21k for a deposit to purchase a property for $240,000. This would be at a 95% lend. It may fit well with your longer term strategy to use the less deposit/equity. Additionally the LMI premium is tax deductible for the first 5 years.

If IP3 is valued at $150,000 and it has $90,000 owing…[Read more]

How much is the purchase price for the 4th IP? What is the value of IP3? What is the amount owing on IP3?

Regards

Shahin

Will the property be self managed or under a PM? If its a PM then you will need to add it as part of the outgoings.

Also are you basing the loan repayments on the loan itself or the overall cost?

Regards

Shahin

When we do cashflow analysis we take into consideration the following:

1. Strata (if its a unit)
2. Building Insurance (if its a house)
3. Interest payable on the loan including annualised fees 
4. Property Management Fees
5. Water Rates (if its a unit)
6. Council Rates

We don't take into consideration:

1. Drop or increase in interest rates
2.…[Read more]

No its actually the opposite from a finance perspective – lenders have limitations in terms of LVR as to how much they will lend. However it does work in your favour if the LVR is at a lower amount. It is also beneficial if you are doing structural renovations vs just cosmetic renovations.

Regards

Shahin

Set them up as separate individual standalone facilities. For example, PPOR value is $500,000 and current loan is $280,000 against the PPOR. You want to use $120k equity to purchase your IP worth $500,000 plus $20k in costs as well. You will take out a loan against the IP for $400k. The balance will come from the equity of $120k.

Therefore you…[Read more]

There is no right or wrong answer until you have done the numbers on cashflow and any potentially benefits if you are a first home buyer.

Look at all the incomes (negative gearing, rent, etc) vs the outgoings (rent, strata, etc). 

What is the inheritance amount?

Regards

Shahin

If you have a builder's license and are in the property game – then it carries massive advantages. 

Regards

Shahin

It's great that the property is cashflow positive however also have a strategy for the Capital Growth. The last thing you want is to hit the 'equity' wall.

Regards

Shahin

Hi Flynn,

There is plenty of information at your finger tips via this site. Stick around for a few weeks and you will pick up on a lot of good and specific information.

Are you a builder or carpenter? 

Regards

Shahin

What do you specific want to find out? The strategy side? Finance side? Or something else?

Regards

Shahin

This is a very common strategy – make sure you have spoken to an accountant re all the tax implications.

Regards

Shahin