Campbelltown is a good place to buy but you should be looking at buying a house rather than a unit budget permitting.

There is no doubt that they are not 'standard' securities however as Scott has stated – they should not be mistaken with nursing homes or retirement villages.

Regards

Shahin

Hi Boshie,

3 reasons why I would go onto an IO loan based on the situation above.

1. It makes more sense to keep the loans on IO until cashflow picks up.

2.  If your strategy is buy a house every 12 months and you have no savings today – it again may be another reason to have an IO loan so that you can park and accumulate a healthy deposit for…[Read more]

How much deposit do you currently have? That will in some ways dictate how much you can borrow and thus your budget. Can you renovate the property or considered subdivision? Or do you just want to passively invest? i.e. buy a place and hope there is a boom and you can get a decent CG? I think you are looking for someone to tell you which suburb to…[Read more]

I can't comment on whether it would be better to keep it separate or not and it depends what your definition of better is? From a tax perspective? Asset protection perspective?

I small problem will be that you will not be able to borrow from traditional lenders if you have just started the business. LVR plays a very important part too.

Hi PI78,

You can ascertain a lot of information from this site. You need to set yourself a short and long term strategy. By this I mean what type of an investor are you? Renovator, starting out developer, passive investor, etc. Are you wanting capital growth? cashflow? From there you can determine what type of properties you want to buy and the…[Read more]

From a lending perspective – there may be restrictions associated with the type of trust you set up. Just make sure that you are aware of this in case the accountant say recommends a Hybrid Trust. 

Regards

Shahin

Hi Kara,

You have saved a considerable amount saved up already. There is no problem in continuing to put money in the FHOG account but perhaps consider putting some money in a separate account (say $5,000) so that you can cover adhoc payments pre settlement such as building inspection, etc. If you are looking to purchase a property for $250,000…[Read more]

Hi Lilian,

Lenders don't have a clean cut policy but the things that a lender looks at is but not limited to the location of the property, the number of units in the complex (the smaller the better), the size of the unit (the bigger the better), the LVR, where its PPOR or IP and the loan term. This is just a few things. I normally deal with ING…[Read more]

You have enough equity (assuming the vaules you have specified are correct) to unlink the securities and loans. You have $192k in equity against the higher IP. Minus that from the existing loan of $135k leaves you with $57k in equity. You can use this equity (make sure its a separate account to the existing loan of $135k) and bring you loan…[Read more]

I would say they treat you like a leper – they just want more documentation that a PAYG. It is also dependent on how long you have been self employed? More than 2 years? Between 1-2 years or less than 1 year? Also remember that we are heading towards December so stock will be limited. There is no harm waiting until the end of January where there…[Read more]

Ok those 'hard costs' are part of the construction tender so therefore no issues going to 95%.

When you say senior's unit – do you mean over 55's over retirement unit/village? Also are you wanting to refinance both investments or one? Also what are the loan amounts and values for each IP?

Hi Steven,

Stay away from serviced apartments. They have fantastic yields but that's about it. I had one case where an applicant was purchasing a serviced apartment. Luckily we did an upfront valuation before he purchased the property and they valuation came back $120k less due to a fire sale in the complex 2 months ago. 

Is there a specific…[Read more]

A lot investors have investments in Gold as it is going up (as they say) but the problem is that you lose a fair bit of money on the conversion and transfer to cash process. Contrary to his statement I remember Warren Buffet always saying that he would never invest in Gold. Is Switzerland an option?

Hi Kara,

Deposit Power will be able to provide short term guarantees pending you meet certain criteria however you cannot pay the bond back after settlement, it needs to be on or before the date. The fee is 1.2% of the deposit amount so say the 10% deposit required is $40,000 then the fee is $480.

Your other option is to have a delayed…[Read more]

Situation deserves a longer answer but im going to paraphrase. You can borrow up to 95% with most lenders depending on a few things such as ANZ can only go up to 70% if you have 2 dwellings on one title or Westpac will lend to 95% but only for loan amount of up to $1mil. You will not be able to borrow funds for the subdivision as part of the…[Read more]

Whats the strata on the place?

Give Marilyn a call from Best Real Estate – she is the best. They are based in Wenty but should be able to service Northmead.

Unless you are building a pair of 2 bedder single storey properties – the duplex will cost you much more than that. Also factor in site costs and the 7,000 other small costs like holding costs, demolition costs, etc.

Re the finance side of things – be careful of the lender you deal and the policy of that lender. Not all lenders will lend you the…[Read more]