Hi Danny,

Have you tried the Mount Druitt area – the rental returns are 7% and there are some good properties on offer. 

Regards

Shahin

G'Day Goatus,

How are you calculating the equity? 

Regards

Shahin

Only consider cladding or rendering if you are going to sell. It does add value but only in certain areas. Best to get some advice from a few RE agents. If you are time poor, get them to come over and give you a quick quote. Also depends on the plans for the future, i.e. if you are looking to knock down and develop the property.

A cheaper house doesn't necessarily mean a bad property. Remember the dwelling depreciates over time and the land appreciates. I don't think its an issue that you have purchased a 'cheaper house' so as long as the area and land component is solid. 

Regards

Shahin

You need to be very specific with what you are wanting . I do have a builder that I have used on my properties. He is fantastic and prices are reasonable. 

Regards

Shahin

You need to get specific advise and this can only be provided after ascertaining further information. We would need to do a servicing calculation to see if your dad's wife can repay the loan before retirement age. This would mean taking into consideration the salary and rental income amongst many things. Also its a little concerning that they have…[Read more]

Stay away from off the plan purchases period. They are a very high risk investment and generally you do not come out on top. 

HI VJ,

The big thing the bank looks at when it comes to applicants heading into retirement is an exist strategy (other then the usual checks such as servicing, etc). So the question for you is what is the exist strategy for you dad and his wife? Do they have adequate super? How do you propose that they pay the loan back? Also will this be used as…[Read more]

Stay clear of Kuring Gai council – you can make serious money in the area or potenially lose a lot of money. If you are not a seasoned developer and don't understand the area then stay clear. Stick the councils that have more relaxed rules like Holroyd and Parramatta. Go for a torrens title subdivision as opposed to strata, deatched is always…[Read more]

G'day Rick,

This has been the lenders' policies for a long time. Its too much risk for the bank to take on as a residential application. You can still submit the application but it would need to be a commercial application which means higher rates amongst many things.

Regards

Shahin

If your LVR is at 90% you need 2 things. 1. make sure the units on the title are limited to 3 and 2. your application must be very strong. Im talking servicing, employment, address history, asset position, the whole box and dice.

Regards

Shahin

The lender with the cheapest rate right now is 5.81% if you LVR is below 75% which it is and the loan amount is above $200k which it is. They also have all the regular features like an offset facility etc.The difference to what you are currently paying is $400 per month. I would seriously consider talking to my current lender and getting them to…[Read more]

Different lenders have different policies so you need to ensure that your situation fits in with the lender's requirements. Some lenders do a maximum of 3 units within a title and some do 4. Some have 90% LVR restrictions and so on. What are the details of the loan and security amounts?

Regards

Shahin

Ok your situation is complex – preferably email you situation along with your details and get them to respond. That way you will have an email trail of the conversation. You will need to provide all the information – even the type of entity you are purchasing from (company or individual).

Regards

Shahin

Hi Dave,

What is your is the loan amount of each property and the approx value?

Regards

Shahin

See that's what I thought when I stated that you will not be eligible. Which state is this?

Are you purchasing the units individually or under one title? 

You cannot claim the FHOG – from a finance perspective what is the number of units on the title? 

Fixed rates are currently very attractive – there is no denying that. I lot of people who have a lot of debt are fixing at least a portion of their loans. Also from a risk mitigation perspective it may be a good strategy particularly for those with high debt levels and/or instable work arrangements. The flip side is that you lose a lot of…[Read more]

Hi Dellas,

What your investment strategy for the next 5-7 years (if any)?

Do you plan to purchase another IP? Do you plan to renovate? Are you planning to start a family? Do you have stability or instability in both your employments? 

Regards

Shahin