Other than the flooring – everything else seems to be overcapitalising to me.

Regards

Shahin

G'Day Kate,

You have 3 options:

1. Advise your broker so speak to NAB as they do up to 95% (including LMI)
2. You speak to NAB directly
3. Speak to a broker who has experience dealing with Hybrid Trust applications and have him handle the application submission for you.

Regards

Shahin

$50k seems a bit too high if you are doing the reno yourself. Is it single or double story?

I have a property in Botany in my personal portfolio. It has performed very well and I have had no issues finding tenants (I have been lucky to have consecutive long term tenants). You should also look at Hillsdale. My recommendation is to look at places that can do with a reno. Focus more on the land size as there are some smaller blocks in the area.

$2000 sqm is not the cheapest. Is this for just the construction?

Regards

Shahin

Very rarely is it a good idea to purchase off the plan. NRAS is another story all together. Be very careful NRAS doesn't suit all investors and you need to be careful of the stock. Some are great and some not so much. What's your investment strategy for the next 5-7 years?

Im currently building 2 dwellings quite close to a busy road and im going for double glazing. It definitely helps with resale and opens to door to more potential buyers come resale.

G'Day Investhut,

You draw upon on the equity from your existing PPOR. You can either draw up to 80% LVR or 90% but you of course pay LMI. 

Lets take 80% – you have $348k in equity. Minus the existing mortgage of $140k, that leaves you with $208k to use as a deposit for the next IP purchase. Make sure the facility is a standalone facility so that…[Read more]

Yes it was a huge loss. There was a 'fire sale' in one of the units in the complex. This meant that the valuation who certainly come back lower. This is just one of literally tons of risks associated with Serviced Apartments. Studios also fall into that category. Risk is only slightly lower. Re your comment about the horror stories, 2 points.…[Read more]

G'Day Brmiau,

I would strongly recommend that you stay well clear of Serviced Apartments and Studios. I recently tried to help a client refinance his Serviced Apartment that he bought in 2007 for $700,000 and it has now been valued at $370,000. The cashflow is fantastic however the capital growth is extremely risky. 

That aside finance is very…[Read more]

Agree with Bardon but you are obviously looking at a different entry point. Depending on your budget – I would be looking at Mount Druitt and Doonside areas. 

Regards

Shahin

Im glad I asked the question about how you have calculated equity!

Don't assume that you can automatically borrow the $10k. Make sure you get the Formal Approval on the amount and at the same time get the pre approval for the new IP purchase. Its better to do both with the same lender so they can see that the cash out relates to the pre approval.…[Read more]

Righto – so how are you basing such an increase in the value of the properties in such a small amount of time? 

G'Day Perseum,

Unfortunately no. The bank takes the less of either the valuation or the contract price which in this case is $650k. On the majority of times the valuation will come back the same as the contract price. If you are purchasing a property for $650k – you will require at least $60k by way of a deposit. 

Regards

Shahin

G'Day,

Not entirely true re the valuation. If you have extensively renovated your property within a 2-3 month period then by all means you can re-value your property. I have done this with 2 of my own properties. I renovated and re-did a valuation within 3 months and got the increase. You do need to justify the increase.

Regards

Shahin

G'Day,

Welcome to the world of property investing! Yes the interest on the $300k or the loan balance at the time of the property becoming an IP is tax deductible. However you cannot increase the loan amount against the IP and claim the additional interest. Deductible interest is applicable for the purpose of the funds. Since you are using the…[Read more]

G'Day Matthew,

I have to disagree there, I have personally built with Masterton (single storey) and I have had clients build with them as well. Let's say I cannot give positive feedback.

Regards

Shahin 

Manly vale also had that stigma but its changed and the prices have risen dramatically. As you have noted there are a lot of units. I would be pushing for houses in Dee Why. There are some older houses on good blocks of land but they are quite rare so you need to be on the look out for a far period of time.

Another benefit of Dee Why is that it…[Read more]

Talking to Real Estate agents is a great idea – they are constantly selling houses in the area so they know what sells and what doesn't. Good luck!

Regards

Shahin

G'Day Liz,

A separate account would need to be established against the PPOR for $60,000 to use as a deposit for the IP purchase (sounds like you are wanting to avoid LMI which is fine). Therefore, you will have 2 separate loans. One for $30,000 and the other one for $60,000 both against your PPOR.

Now if you sell you PPOR then you will be…[Read more]