If you want to invest the $50K then you should pay the loan down to $100K, refinance and borrow the $50K back in a seperate account which you would use only for investment purposes, this will make claiming interest on tax far simpler. 

CBA rate specials, mentioned above, have been extended to the end of this month.

I don't need anyone myself but I know my aggregator is looking for new loan writers for some of the larger groups, I'd be happy to hook you up. I have no idea what sort of remuneration they offer, it won't be $150K per annum though, I can assure you. To earn that sort of money you need to be generating a lot of work and at that stage you will be…[Read more]

My 2 cents worth. With a strong capital base behind you I don't think residential property (unless you are developing) is going to do that much for you except provide a management and potentially cash flow headache. I would strongly suggest you look at commercial property, you can buy very good quality properties with that amount of capital. As a…[Read more]

That is great, but it has no relevance to planning in Victoria. Planning legislation is a State issue , it is not national, and as stated there would have to be a complete rewriting of planning legislation in Victoria for this to happen here.

Lovely dream Wilko, but its not going to happen. This would require totally rewriting the legislation relating to town planning. At the moment the individual councils are the planning authority in their geographic area and they can choose, and often do, to delegate responsibility to their planning department. To have authority to sign off on…[Read more]

In Frankston the cost will be at the lower end of what I quoted. You can probably just get  draftsperson to do the design and planning application.

You should be asking if the people you are using are any good, the cost in terms of fees will likely be inconsequential compared to the cost of using poor quality consultants. Depending on where you are building I would expect costs of between $10K – $20K. In some areas you can just get the designer to do everything, in others you would want to…[Read more]

How long is a piece of string? It depends heavily on what you are trying to get approved. I'd also make the point that the quality of the consultant can have a heavy baring on:
1. If you get an approval at all;
2. How long it takes to get an approval;
3. What is approved;
4. How expensive it is to build
5. What price you will get for the end…[Read more]

Just to add a bit of variety to the conversation, you can order your own val report with many commercial lenders and have them assigned. A lot of borrowers like doing this because they feel more in control, but in reality it is not a great idea as the valuer is not going to put themselves at risk by valuing the property higher than they would if…[Read more]

Freckle wrote:

Matt_Arnold wrote:
Eg. A $300,000 loan over 30 years at 5.98% paid fortnightly with an avetage of $10,000 in the offset account for the life of the loan will reduce the total interest payable by $45,575 !

Jeez I hate these BS examples. The true power of Offset accounts are not in the piddley amounts of small change you might…[Read more]

Sorry, I should have looked at the title of the thread, not just the post. Chris Smirnakos at Landmark White is very good. If you want a report that will be acceptable to almost any lender then use Charter Keck Kramer, not sure who does their retail property vals.

Which State?

Hi Wilko, I'd be happy to go over this or future ones with you. In terms of what they don't tell you, it gets worse, some apply a discount to the end value abndlend against the discounted figure, so 60% of value can be more than 70% of value, depending on how it is determined. The same with loan costs, some loans include a rate on the undrawn…[Read more]

Give them hell about the cricket while your over there Richard!

If servicing is available without rents then you should be able to get up to 70% of the end value, but don't discount this as an issue as while the reality is you would be able to service the loan, bank calculators can make a good situation look very poor after they hit you with a short ammortisation period and high interest rate in their…[Read more]

Hi Wilko,

If you are not able to separate titles pre-construction, which would be unlikely in Victoria (I can't comment interstate) then the loan will have to be commercial and servicing would be constructed under commercial policy which means you would have to be able to service the end debt without using prospective rent. The lender would still…[Read more]

You're going to struggle to get the amount you are after Wilko. The banks all max out at between 65% and 70% of the end value net of GST. Your income is not relevant to this, although it will probably mean you have a lower presale requirement. There aren't too many lenders around doing higher LVR's on development finance at the moment, although if…[Read more]

Thanks for recommending me Richard. Hari, I'd be more than happy to have a chat with you about what you are after.

bullet46 wrote:
Hi Guys,

Recently I sparked an interest for commercial real estate and I am wondering what some of the negatives are?

I can see online that the rental yields can be quite good, but something tells me I'm missing some important points. A few things that crossed my mind that I could be totally wrong are:

Finance may not be as…[Read more]