Hi Maree,

Some lenders allow you to do an upfront valuations (most free and some a reduced fee). Depending on the situation – you may be able to request that a particular lender uses a specific valuer but it must be a valuer within their panel.

When the upfront valuation takes place – you will be able to get a full copy of the valuations. In…[Read more]

Waterproofing is paramount – make sure whoever doing this is doing it properly and actual does it. Don't get one person to do everything. Get a tiler to the tiling, etc. Make sure you pay a little extra a get a good tiler even if its for an investment. Doing a bathroom the wrong way will cost you heavily. There are plenty of bargains out there re…[Read more]

Hi Matthew, 

It slightly depends on the areas you are looking and also the type of property you are looking to purchase (unit vs house). Think about your long term strategy, e.g. when do you want to purchase your 2nd IP and how will the first IP help? Will it help cashflow or capital growth?

With a $15k deposit – you will be looking at a…[Read more]

You can't pay off the PPOR loan by using the LOC or a loan against the IP and then claim the interest on that amount.

Set up the facilities separately/standalone and if you are going to use equity in the PPOR to fund the next IP – make sure that that too is a separate facility. 

Whats been the problem? You should easily find something about the Turramurra area.

You have $50k in savings and this is linked as an offset to your PPOR. This is great and keep it there. It is 'bad debt' and you want to pay less interest on the PPOR than on the IP's. Re the equity – you have $152k in equity at an 80% lend. You have $186k in equity at a 90% lend (minus the LMI). The equity of say $152k can be used as a deposit…[Read more]

That is sqm size is bordering on ridiculous. I won't go anywhere near the property. What is the strata on the property?

Hi Rob,

Thumbs up on the decision to purchase house rather than units particularly if your strategy revolves around Capital Growth. There are a few strategies you can implement, i.e. development, subdivision, GF's, and the good old renovation. Which areas have you been targeting?

Regards

Shahin

Ok so what would be the rental on both houses? The numbers dont look too bad. It will really come down to building costs but a single 3-4 bedder dwelling should cost around $150k turnkey. Don't forget the depreciation benefits on the back property when crunching the numbers.

Hi Louis,

Whats the resale value of both properties once the unit in the back goes up and the subdivision is complete?

Regards

Shahin

You should never fix your loan on the basis on beating the bank. Fixing a rate is more of a risk management than anything else.

Hi Mate,

Go to Liverpool auctions – they have solid timber front entry doors for $120. You just need to paint or stain them.

Regards

Shahin

Tom is absolutely right. What they 'forgot' to also mention is that the rate is applicable to LVR's below 80%. Another thing that a lot of people also miss which is very important is the policy of the lender. What if the investor wants to development and build multiple dwellings, or is a owner builder or has a special type of security or is…[Read more]

Pepper and Resimac are my favourites when it comes to specialist lenders. 

Here is the website for Pepper – it will give you a load of good info:

http://www.pepperonline.com.au/ProductsAndServices/FlexiAdvantage

You can draw upon the equity in your existing property either upto 80% or upto 90% depending on the lender and loan amount. However it is very important to set up the facility as a separate facility and not top up the existing loan for tax purposes. 

Re getting finance – its hard to give you decisive answer without looking at the whole situation/application. Essentially, you either need to look at a specialist lender which will charge you a higher interest rate of 9's% and a set up fee of about 1.5% of the loan amount. or you can look at a mainstream lender but this is much tougher. Depending…[Read more]

@ Michael – 100% on the money. Macquarie needs to tighten their policy if they want to get more business. Its a bit like rocks and diamonds with them. 

Doesn't sound right – have you tried calling the Blacktown office? They should be able to check and advise if they are allowed to sell the property or not.

Contact the department of housing – the only issue is if the contract of sale only permits owner occupied housing. 

Righto – call the managing real estate agent and tell them that you are interested in purchasing the house. Ask them to advise the vendor if they would consider selling if so how much are they willing to sell.