Hi mddedf,
I have a feeling the “influence our borrowing capacity” line may have been based on a very broad idea that units have higher yields than houses. Jacqui has pretty much summed it up our banks assess serviceability but it goes quite deep and each lender assesses it in their own ways so trying to calculate it yourself, particularly with an…[Read more]

Personally I would be applying for DA for both properties. I think trying to separate them is very risky and will limit what you can do. I take it you have never dealt with a council before? It is hard enough to deal with them on one occasion let alone on two separate projects.

Your also going to have increased costs as you will need to engage…[Read more]

Hey All,
I just stumbled across this very interesting topic but am having some trouble fully getting my head around it.

Let us say I own 2 properties on a subdivided block. I live in property A as my PPOR and then rent out property B for 2 years. After the 2 years I decide to sell property A and move into property B.
From what I am reading I…[Read more]

Hi RPI,
Thanks for the info. I am based in Victroia and will likely begin by building my portfolio around here for the time being.

Hey Chris,

There is a full CGT exemption if a property is your PPOR but, which according to the ATO

Full exemption
You are likely to be eligible for a full main residence exemption if the dwelling:
has been the family home for you, your partner and other dependants for the whole period you have owned it (ownership period)
has not been used to…[Read more]

I think the FAQ avoids what they actually do which worries me and more focuses on questions about real estate in general. This is a company who talks about finding positive cash flow properties and offers a full end to end service.

But they do not answer any of the important questions in the FAQ?

Hey All,
Thought I could offer some feedback in regards to this. Around 10 years ago a builder approached my mates parents who were both close to retirement. They had a block of land in Airport West around 650m and had made no indication to sell or downsize but none the less this builder who they had not met, was simply door knocking!

His offer…[Read more]

Hi Ben,
Thanks for your very detailed response!

Yeah it is quite crazy this practice was allowed. Our down pipes run into the ground and I did follow them to the end of the property where they just go off into the soil which is basically right up against the neighbors fence. The funny thing though is I spoke to my left neighbor who also shares…[Read more]

Very interesting post as I would never have considered renting out my PPOR and renting somewhere cheaper but It does make some sense. For example my wife is keen to move back closer to her family which would be about $150 less to rent than what I could get for my place so that extra money could then pay off the mortgage plus then get the tax…[Read more]

I have not done a heap of research on these areas but know them all quiet well. If you are looking for the best capital growth then I personally think coburg would beat the rest hands down. Coburg from what I have read is a bit of a hot spot at the moment as many of the inner melbourne suburbs on the same side are becoming quiet expensive. That…[Read more]

I do this but a few warnings and considerations i have had to learn the hard way. It sounds like a no brainer but just make sure you fully understand the T&C’s of the credit card you are using. I mistakenly did not pay back the required amount for a month and it took 2 months before they would reset the balance. The cost to me was about $120 in…[Read more]

I received my planning permit with little hesitation from the council to develop at the rear of my block which should be commencing in the next 4-6 weeks. It only took 6 months for everything and I’m building the place I want as well. I’ve completed some renovations on the PPOR including a stacked stone fireplace which has been absolutely…[Read more]

Thanks Jamie
The plan is to sell the rear dwelling upon completion so it will not be used as an IP.
Once settled I then plan on having the front property valued and will then purchase it from my brother at the valued price.

Is there any special consideration I should make with this scenario? or as suggested just split the build loan into our…[Read more]