Please please please ensure that you have an exit strategy, i.e. what happens when the mining stops and people start to move out? You need to factor this. 

Hi Mrs Bee,

Its best to map out both scenarios and see which will be more beneficial. If your longer term strategy is to acquire IP properties then I would suggest keeping the PPOR property and using it as an investment and then purchasing a new PPOR. There are some CGT circumstances that come into plan which is why it is important to map out the…[Read more]

You can either approach a Valuer directly or have a broker order the valuation for you (this is the cheaper option). 

Bank's minimum deposit is approx 8.5% and the maximum LVR increase is 90%. 

Hi,

On a purchase of $200k you will need approx $16k which is broken up into the following:

$6k – Stamp Duty
$10k – 5% Deposit

General rule of thumb is about 8.5% minimum deposit required.

Regards

Shahin

Hi,

I have personally gone down the duplex path and it has yielded some great results. I have done this in the Wenty area. 

Just a few questions – do you currently have the DA and if so are you subdividing before building or building and then subdividing? Will it be torrens or strata titled? What is your current LVR and what is your LVR after…[Read more]

Hi Paperchaser,

You will not be able to purchase all the properties so you will need to pick. Assuming that the servicing side of things add up, your biggest issue is the deposit. 

For example, if you are purchasing a property for $200,000 then you will require at least $16k in deposit for that purchase. $10k can come from the savings (I assume…[Read more]

Hi JD,

It is tough question to answer as you may need the $28 car as a lifestyle choice. If your first objective/strategy is to get into the market then the question is can you sell your car and do with a cheaper car?

The biggest thing that I see face first time buyers isn't servicing but the deposit. For example, if you are pruchasing a house…[Read more]

Hi Daniel,

If you rent the property for $450 net (i.e. after the agent fees have been taken out) then that's about $23,400 per annum plus another say $5k in negative gearing. You can already see which option is beneficial.

The other benefit of living in the property first is that you will be able to renovate or fix the property during the 12…[Read more]

Hi Peter,

Sounds like you need to share your tips on where you are finding these PG IP's?!

Interest only is great which is why a lot of people use St George for SMSF IO loans. They have a good product and of course a linked offset. 

The only thing with St George is that you need a company guarantee for a 80% lend.

Regards

Shahin 

Hi Daniel,

Would you be receiving the $12k grant and the $9k lump sum payment if you used the property as an IP or do you just get that if it was a PPOR?

Is there a reason who need to live in the property for a year instead of 6 months?

Regards

Shahin

Hi Fox House,

Welcome to the forum.

You have be careful with regional areas as I have seen many investors not achieve any/very little capital growth.

Secondly, LMI is not necessary a bad thing as it is tax deductible. The biggest issue with investors starting out is deposit to fund for the property purchases. Many (not all) do not have an issue…[Read more]

Hi Novacastrian,

I am assuming that you are in NSW? It depends on the state as that would dictate the SD payable. If you have $15k then you would be able to purchase a property for approximately $60k. With an SMSF, you need to come up with the 20% deposit (minimum some lenders ask for more depending on the scenario) and the SD costs and also the…[Read more]

Hi Tom,

My comment was not referring to providing false information. I am talking about circumstantial change. For example, the applicant had intentions to rent out the property but later decided to move in for a while, renovate and and rent it out later or whatever the circumstances are that changed from the time she had a view of renting it out…[Read more]

Hi Kezza,

Steve has provided some excellent advice and has well and truly hit the nail on the head in the process.

Speak to a good accountant to give you advice on how to best structure the entity – don't forget to discuss long term plans such as transfers of owenrship and negative gearing benefits. 

Regards

Shahin

Hi Phoeson,

I am stating that there is nothing (lender, ATO or any other legislation) stopping you from living in the property even though you have taken out an investment loan. 

Regards

Shahin

Hi PDimi,

Do you have a budget for the IP purchase?

Regards

Shahin

Hi Phoeson,

If the situation is that you have an investment loan but you want to live in the property – yes you are able to do this.

Regards

Shahin

Hi Jacm,

Just to clarify – in the scenario above if Sarah was to purchase the property as PPOR and then rent it (assuming that she then has another PPOR) and thus is liable for CGT  then the amount is prorated for the period it was an investment. This would be further halved if the property was held for more than 12 months. Example, property is…[Read more]

Hi PDimi,

If you are starting out on your property investment strategy I would personally not start with commercial property. Yes it has its place in an established portfolio but not when you are starting out. Start with areas that you are familiar with. South West Sydney is a great area to start. I have many investors who started out at…[Read more]

At the very minimum you can have the title under 50/50 split so that way you can claim at least half of the negative gearing against your TR. I would go to the extend of saying that it would make more send to have it just in your name so you can claim 100% negative gearing…