Whilst I don't think there is anything wrong with purchasing a property without seeing it – I do think its worth paying a couple of hundred dollars in airfares and a few hundred more in accommodation and inspecting the property. I did this twice (but didnt end of buying) but did make a weekend of it with my wife.

Regards

Shahin 

Based on your initial post you are definitely cross securitised but you do have enough equity to unlink them. You can get your broker or banker to restructure them but you would be up for another set of LMI if the larger security was pushed into LMI territory but this is not the case so you should be fine.

Its best to set up standalone facilities…[Read more]

Is it better to accumulate properties within SMSF or outside? You need to ascertain a list of the benefits and put this against the restrictions/disadvantages. You have already noted a benefit but here are some more:

1. You can use your Super money as a Deposit instead existing cash (or lack of)
2. Tax benefits. The maximum rate you pay on the…[Read more]

I would invest in APM or RP Data reports which will show you recent sales. This can help you do 2 things:

1. Help you determine a reasonable price based on recent sales in either the street or surrounding streets
2. Help you justify why you are putting a potentially low offer.

At the end of the day if the vendor wants to sell the property for…[Read more]

Hi There,

It pays to sit down and explore these items in more detail but here are some general comments:

1. Re setting up a trust – there is 2 components accounting/tax and finance. You need to speak to an accountant about the pros and cons of not only a trust vs investing under an individual entity but also the difference between the trusts,…[Read more]

I have a lot of investors who have or are purchasing these types of homes. Many of them generally miss out because someone else sees the opportunity but ends up overpaying for the property. So you need to be very careful that you don't overpay because you are distracted by the 'potential to make money'.

Regards

Shahin

Different lenders have different policies. Some will take average of 2 years, some will take the lower amount and some take last year's figures only (such as ANZ). Also if you are going with the lenders that require the first 2 then you would need to explain why there has been such a large increase or decrease in figures as part of the laon…[Read more]

You can change it to a IO and then change it back to an P&I. From a tax deductibility perspective try paying off the car loan as soon as you can even ahead of the PPOR as this is bad debt (going IO temporarily may help this without affecting your current cashflow). 

If you are wanting to use existing equity to fund a new IP purchase I don't…[Read more]

Who has told you that you can borrow only $250k if you keep the existing property? There a lot of of ways to increase your servicing/borrowing capacity which includes:

1. Jumping onto an IO loan if you are on a P&I loan
2. Using the PPOR as an investment property so that you can use the rental income on the property whilst potentially renting or…[Read more]

Hi Blade, 

I think you are looking at this the wrong way. Try working backwards to determine what property strategy works well for what you want to achieve. 

Now NRAS is a type of strategy. It is a great strategy but its not for anyone and not any type of NRAS property is good. It has a lot of benefits and certain restrictions so just ensure…[Read more]

Lenders will look at your taxable income however this is calculated by dividing your taxable income by the 12 month sales noted in your BAS Statements. This must fall within a certain percentage (generally under 50%). 

Lenders require different information when it comes to lo docs and in fact CBA charges a higher interest rate for their lo doc…[Read more]

Yes! It's actually quite surprising how many people think that claiming depreciation is only applicable on OTP properties.

Gosh these groups just keep popping up im losing count. Andrew's comment above is great – I personally like to see a track record and talk to people who have used their services before.

Regards

Shahin

Also good point about talking to a broker as a broker can help you crunch the numbers. Find yourself a local broker as it sounds like you may have a lot of questions to run through and it may help being face to face.

Regards

Shahin

It comes down to a lot of things including the numbers and also lifestyle. There are a lot of investors who have a large portfolio as they have bought in lower entry point suburbs whilst renting close to the CBD (due to work or lifestyle reasons). This allows them to take advantage of the negative gearing benefits. However don't purchase a…[Read more]

Hi Gemma,

This need actually comes up more commonly than people think. You definitely cannot remove the personal guarantees.

Has the Director moved on or has he been replaced by another director? 

Regards

Shahin

Hi Mate,

Here is the website for the NSW Planning Policies however remember if it doesn't fit these policies (and in most development scenarios it doesnt) then you need to refer to each of the council's DA guides.

http://www.planning.nsw.gov.au/list-of-state-policies

Regards

Shahin

Must admit I haven't seen or heard too much activity in the sunshine coast. What are the yields like? You can also get property information from either the RP Data or APM reports.

Regards

Shahin

Hi Matt,

This is a great idea – I look forward to the site going live in the new year.

Regards

Shahin

This may be correct in Victoria but its simply incorrect when it comes to NSW. Zoning is paramount. You can just go and build units on a block of land zoned 2a in Kuring gai council or any other council for that matter. In NSW each council has specific rules and policies that must be adhered to. The exception is the Sepp's.