Hi all. As you know I am thinking of buying an investment property. Should be no issues with equity or serviceability. But I am trying to work out in my head the steps I need to take. Do I find a property then take it to an accountant to work out how much it will cost me per week (or do this using a model myself). Do I then find finance? Will this give me enough time during the finance clause period? Or do I need an accountant/ broker first and have everything in place and then find the property?
Im really just trying to get it sorted in my head because once I know it Ill be right.
Any help would be great
K & T
I still use the same formula today owning 40 IP's as i did when i purchased my first.
1. Can i finance it – in your case that appears to be YES.
2. Have i got the correct finance structure. Do i have my equity loan in place for the deposit and acquisiton costs so not to cross collateralise ther securities. (Your standard Finance clause will not allow for this so you need to have it done upfront)
3) What type of property do i want to buy. Cash flow positive / negative etc.
4) Given 3) above what entity should i buy in. Personal name / s (Joint Tenants / TIC) or DFT for income distribution and Asset protection.
5) Based on 2,3 & 4 above what will it cost me to hold the property.
6) Is this acceptable.You cant put the horse before the cart and expect it to work in the timeframe so you need preparation time.
Cheers
Yours in Finace
Richard Taylor | Australia's leading private lender
KateandTony wrote:Hi all. As you know I am thinking of buying an investment property. Should be no issues with equity or serviceability. But I am trying to work out in my head the steps I need to take. Do I find a property then take it to an accountant to work out how much it will cost me per week (or do this using a model myself). Do I then find finance? Will this give me enough time during the finance clause period? Or do I need an accountant/ broker first and have everything in place and then find the property?Im really just trying to get it sorted in my head because once I know it Ill be right.
Any help would be great
Hi Kate and Tony
From memory, you're based up in Brisbane. Do yourselves a favor and get in touch with Richard Taylor (who's responded to this post). He's an excellent broker who will guide you in the right direction.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
From my point of view, when ever you are looking into property investment, the most important issue would be property selection. The ideal location is depending on if you are going use the investment property for commercial lease or monetary gain <moderator: delete advertising>.
I guess the big problem now is if there is a property for sale available at a location that you want with high potential gain on value or a strategic area for your target market to lease for commercial use.
They say if you are going to invest in a investment property, make sure that there is a market willing to invest in your location of your property. It's all about location.
Good luck and cheers!
Richard had help me out in the pass and you may want to check with him, but for me
it is very important to understand how much I can borrow first and structure correctly for the most tax benefit.
From there then decide how much you really want to borrow,
Look for property
Do the calculationsof course you need finance first, you have no idea what to look at if you dont know what you can afford. to know this you need a broker, before you get a broker you need an accountant, so you know which way to finance it ,and what level of gearing would suit your situation and how different scenarios will affect your tax and cashflow now and in the future. Your broker and accountant should work to-gether along with you .
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