Firstly whats the asking price and secondly how far is it from the station?

Citibank has the no LMI upto 85% LVR policy but you do need to meet certain conditions. Rates are quite good however the service has to improve.

You can still use the equity in the IP and get the securities separate. So your IP will have one loan for the IP itself with account number 'abc' in the amount of $325k and a second account number 'xyz' in the amount of $102,500. The $102,500 will be used as a deposit for the PPOR purchase. Also if you are going to go LMI (which you will need to)…[Read more]

Hi Jay,

At an 80% lend you have $55,000 in equity and at a 90% lend you have $102,500 in equity plus your savings.

Keep the securities and the facilities separate.

If you are purchasing a PPOR for $680k and you want to aviod LMI (and you would want to as its not tax deductible) then you will require at least $163k (depending on which State you…[Read more]

@ Dark night definitely agree – there are massive 1000sqm + blocks of land in Werrington and Kingswood going for low $300k.   Plenty of opportinuty. 

If its new and completed then yes it is still a new purchase and you will be eligible for the grant. Having said all that I still don't think the numbers on the IP is strong. It is currently a buyers market in almost all parts of Sydney (from Western Suburbs to Eastern Suburbs). I really think you should compare the numbers on this property…[Read more]

I don't have complete visibility over the cashflow side of things but why not have the fees and outgoings coming out of the transactional account? I am not a huge fan of LOCs. For IP purchases I personally set up a separate variable loan with a linked offset. So there is a loan amount but all the funds are in the offset meaning no interest is…[Read more]

CBA hasn't got the best offset account in that it is not fully transactionally but nevertheless is there a reason why you are not setting up an offset linked to your IP and having the deposit whether it be rent or salary going into the account? That way you are paying less interest. Also you can do a bit better than 5.85% with the above loan…[Read more]

Yes – basically at the quarterly committee meetings they raise things that must be done such as fire safety inspectation, finance audits etc. The committee decides who they should go with or if they should get multiple quotes etc. Remember if you are doing something – always get multiple quotes. Generally speaking, strata managers have…[Read more]

I did one on one of my IP's and the cost was about $1,500 from memory.

Hi Julz,

I assume you are in Sydney yes? 

Coupled of points; 70sqm is big for a 1 bedder however I think that they are not good investment vehicles. The body corporate looks a bit high (if I understood the above correctly) however with new developments, the strata generally tends to rapidly increase one the development has finished. The rental…[Read more]

Excellent post – I would strongly concur with points 4 and 5.

@ Steven B – I had a feeling you would name those areas. They may be 'low income earners but there is plenty of opportunity in those areas. There are larger pieces of land that could be subdivided or will allow for multi dwelling development. Rental yields are also quite strong whilst you are waiting for your plans to be approved in council. The…[Read more]

Based on the number of properties you are wanting to purchasing and also your income/cashflow – you need to implement a strategy that will give you access to equity quickly. This may come by way of a renovation but some of the most common strategies have been to purchase a property with the strong possibility of subdividing the land in the back of…[Read more]

Hi Lyn,

What has stopped you from purchasing a PPOR thus far?

Regards

Shahin

Which areas have you been looking at?

What is the value of the PPOR and the current loan amount? Also how have you derived the value of the property (i.e. your estimate or valuation)? Also do you have any deposit saved?

The LMI will not be transferrable. Why do you want to refinance? Is it because of the rate? If so, then most often you can can get your current lender to match the rate on offer. If its policy related then thats a different story. When did you purchase the property and who is your current lender?

I have a public housing property in my portfolio which I purchased 2 years ago. Its been a great investment – i.e. 18% CG and great cashflow yields. I don't think public housing in those area will be a large issue as the population starts to get priced out of the market. There is currently massive investor activity in those areas. I went to look…[Read more]

Hi Ilya,

Welcome to the forum. Studios are one of the worst possible investment options.strategies. Look at the strata associated with the property. I dare say that the yield doesn't look as interesting as you thought. Secondly, you are taking a gamble with the times of investors, more frequent tenants instead of established tenants. Thirdly, ask…[Read more]