I am not a buyers agents but I do have clients investing in that area and I have 2 properties in Wenty. I would personally either spend low to mid $300k on a unit in Westmead with low strata and high rental yield and demand or buy a house for about $400k (will need renovations) in toongabbie. Think about the resale. I doubt you will have too many…[Read more]

You can leave the properties unlinked and set up the separate loan facility without linking the 2 properties. What do you mean by free up more income?

The purpose of the $50k in borrowed funds is used for the PPOR hence it is not tax deductible. So only the $218k is deductible. Speak to your broker or banker about the best structure but best to keep the properties standalone and set up the $50k as a separate facility so that the interest that you want to claim is not contaminated. 

Thumbs up re the valuation – that answers a few important questions.

Equity at 80% is actually $34k and equity at 90% lend is $65k (minus the LMI payable). 

Now back to your question – if you are planning to live in the property you are purchasing then any loan amounts that you take out for that purchase will not be tax deductible. 

Run the other way as fast as you can for 2 reasons. Firstly off the plan purchases are generally and in most cases high risk investments. Secondly, Toongabbie is not the right market for off the plan units. Duplexes are a different story but certainly not units. With the same money (maybe a little bit more) you can grab yourself a house. 

How are you calculating 'equity'? i.e .what is the current loan amount and the value of the property?

Secondly are you estimating the value or have you conducted a valuation?

I would personally go with keeping the existing property and then purchasing another property to potentially build a duplex on. I do have a plan B when looking for duplex sites – that is, the ability to be able to rent them out whilst being able to get the DA. If the DA doesn't come through at least I have the cashflow to sustain the investment.…[Read more]

If the property is worth $420k then your equity at 80% LVR is actually $146k (already deducting your existing home loan of $190k). At 90% LVR it is $188k.

I am more of a buy and hold investor so it really depends on your investment strategy. I like the duplex idea as I have done this several times in Sydney and made signifcant CG. The only risk…[Read more]

Go with the Torrens Title. The problem with strata is that you do not have control over the costs associated with the maintenance of the complex. The benefit of a TT is that you have flexibility over what you can do within your land. For example, you do not need to get the permission of the strata manager to tile your balcony. Again torrens title…[Read more]

G'Day Richard,

Excellent doco. The setup costs of SMSF's are certainly costly but I wouldn't say that the ongoing costs are expensive.

When it comes to the entities – the 2 big ones are probably Hybrid Trusts and SMSF's. CBA have a terrible SMSF product whereas other lenders have quite good products. Re Hybrid Trusts – there are a lot of lenders…[Read more]

I am from the North Shore and have 2 properties within Western Sydney (around Mount Druitt and even South West Sydney). There are some good yields in those areas. Positive cashflow in about 1-2 years. You have to be careful of certain things though when buying in those areas. 

$60k is a great amount to start investing with. I also recommend that you start looking locally. Go to open houses, auctions and get a feel for property types (not just a unit or house but think properties that you may be able to develop). Speak to RL agents and get a feel for what sells and what doesn't. Which part/area of Sydney are you from?

A handful of lenders provide free or discounted upfront vals. NAB/Homeside is one of them (its free). Get your broker or banker to order one and see exactly how much the valuation comes back at. There is no point making plans until you have this. If possible quote a little higher and provide a reason for the higher estimate – e.g renovations,…[Read more]

What are you on an interest rate of 9.75%?

90% x $320k = $288k

$288k – your existing loan of $255k = $33k

Also on another note you should get an upfront valuation done on your property to ensure that the property is in fact worth $320k. A better option would be if it was worth more so you could borrow more and pay less LMI.

How much deposit do you currently have?

Regards

Shahin

G'Day Intrerested,

In terms of servicing – you will not have any issue borrowing the required funds. The only question is around your deposit. You do not have any equity in your unit at 80% LVR but you can borrow up to 90% which means that you will have approximately $33k in deposit to use as a contribution for the new purchase.

There is no…[Read more]

G'Day Patch,

The loan requirements you have provided is available through most banks/lenders. The question is what is your investment strategy both short and long term. Based on this need, the right product can be matched.

Regards

Shahin

Adelaide Bank Fixed rate has a fully available offset option but the rates are slightly higher than the majors.

G'Day CMartyn,

Save as much money as you can – if you have a car sell it and park the funds in a term deposit and just add to it. Live on a budget and save every single cent. Do everything you can to save funds. The amount of deposit you have will dictate the amount of funds you can borrow (servicing is the other factor) which in turn will…[Read more]

Bathroom and Kitchen are arguably the most important parts of a house so reno away. I was referring to the fence and bi-folds. Bi-folds are super expense. My wife wanted then so what I need was get $110 solid french doors (they needed handles and a paint) and it was a cost effective replacement that looked just as good. The deck is in the same…[Read more]