You can borrow up to 95% however things that are not included in the building tender, lets say demolition costs and fencing to keep things simple then you will need to give quotes for these and present them as part of the loan application. These costs are generally also factored into the construction cost when the valuer values the property and…[Read more]

There are lots of costs that are associated with both the dwelling itself, the site as well council costs. Demolition by itself will cost at least $15k. 

Where abouts in the Parramatta area is this located?

Highly unlikely in most common instances will mean that you financial benefit from a one year fixed with a linked offset unless you have a a massive amount of money sitting in your offset. The more likely case in the above scenario is the monies in the offset will be accumulated over a longer period of time say 2-3 years which is why their fixed…[Read more]

Gravel and stepping stones will be cheaper but it depends on area and clientiele. Speak to a few real estate agents and see if there is a massive difference between the 2 come resale time. 

Also weed mat doesn't do much. They still grow on top of the mat after a period of time. 

You have to be very careful when renovating with tenants in the house. They can easily take you to court and claim compensation for the renovations. NSW tenancy rules have changed giving tenants a lot of power. Just be a bit cautious.

There is a several lenders that offer full offset on fixed loans but you pay a premium on the rate. Why are wanting to fix your loan?

How big is the renovation and/or what are you specific renovating? Renovating is a bit like driving your first car. Whether you think you are not going to have an accident – you always will. Therefore, you don't go out and buy a Porsche as your first car. Similarly, start small with a renovation. You will learn a lot from what to do yourself and…[Read more]

Macquarie's internet banking is one of the best in the market and light years ahead of the other lenders. Gosh I should get a job at Macquarie?

By the way there are no problems in fixing as some need to fix to manage risk. 

Hi Jewel,

Fixing your loan helps (by a decent margin) your serviceability with some banks including Westpac. However, interest rates are going down plus there are certain restrictions that apply with fixing your loan hence why I recommend that you should not consider fixing your loan unless its your last resort and the extra borrowing power…[Read more]

Just to clarify – are the 13 dwellings on one title? Also what do you mean by 'take over the notes'?

Hi Steven,

Work backwards. 

What's the end goal (perhaps short to medium term)? Then work your way back and determine what type of property vehicle will get you there. High cashflow? Potential for capital growth but can you afford losing on the cashflow? There are too many scenarios but ensure that you do the numbers for each of those scenarios.…[Read more]

We have a 7 month old and have no bath tub (its one of those portable ones) and its a nightmare. My wife is now saying we need to build a house because of this. Not a good outcome.

I would go with a combined Bath and Shower. It is more appealing for families you have young ones. 

Advantedge (owned and backed by NAB) is offering as low as 5.58% for loans under 75% LVR but please dont start chasing lenders purely on interest rates. You need to look at the bigger picture or better yet the overall picture. 

One other thing I just thought of is that they have a niche were if you have a limit on your loan which is higher than your loan amount say limit is $500,000 and balance owing is $400,000 then you can simply reduce the limit to $400k and use the $100k for borrowing shares with your Macquarie account. 

Hi KK,

Like most banks they have their pros and cons. What did you need to know specifically? They access the Westpac ATM network which is great (St George and Westpac ATM's). 

They have one of the cheapest rates and fees in the market. Their policy is a bit on the tight side. For example, they don't accept maternity leave income.

Has a broker…[Read more]

Hi Pru,

I think you have quite a good strategy already without needing to pay someone $700 per hour. Are you looking to purchase a house for that much for a unit? 

Re your question about the deposit – you will need a minimum 10% to get into property. This however will mean that you will pay lenders mortgage insurance when your LVR goes under…[Read more]

You have 2 options. You either go with a specialist lender and pay an arm and leg for the finance or if possible purchase the property on joint names (say with your spouse) however the application would need to services just on your spouse's income, must be under 80% and a few other rules apply. Not all lenders will do this and some will.