That doesn’t sound right – generally pre-strata’d properties are sold at a discount compared to if they were all on seperate titles.

Either they’ve got their numbers muddled, theres a misunderstanding or they have no clue what they’re doing!

Property valuers can give you a valuation based on historical sales – so they would be the best bet to get an accurate gauge of the properties value at the time.

Hope you have a consent order in place/being put in place, we’ve been dealing with some particularly nasty scenarios where clients thought they’d ignore getting one and it’s going back…[Read more]

Commercial has definitely less restrictions for non-residents than residential lending – and can allow you to access mainstream commercial products in comparison to residential lending where you’re having to use niche lender/products.

If you have sufficient capital for a deposit of 30-40%, you will get more cost effective and longer term…[Read more]

88%+LMI is preferable, the cost saving is reasonable as the insurance premium jumps the moment you go over 88.01%+ – I’ve written about the considerations for what LVR to choose here: http://www.precisionfunding.com.au/lmi-friend-or-foe/

As Jamie has noted based on that estimate bank value it shouldn’t be that low as uncrossing loans generally reduces the facilities to 80% of the remaining security. If it’s not a high risk postcode of security (with some lenders things like apartments or multiple dwellings on one title can reduce the LVR allowable).

Grin and bear it – this is why you never cross collateralise your properties.

What is the remaining property valued at? Judging by the loan reduction amount I’m assuming they’ve viewed it’s valuation as 200k.

Grin and bear it – this is why you never cross collateralise your properties.

What is remaining property valued at? Judging by the loan reduction amount I’m assuming they’ve viewed it’s valuation as 200k.

I would suggest exclusive over general – just like selling property you want the agent to be focussed on selling your asset, not half arsing it as they think there’s others selling it.

I know people in the game who specifically will not take general authority or if they do, will keep it on the backburner as they see it as barely worth the effort…[Read more]

I’m not sure based on the above scenario that the poster would have much luck with referencing the NCCP or FOS – their issue appears to be:

1. timing of property 2’s settlement being delayed which is limiting their ability to draw equity funds for purchases
2. lenders changing their policies for new loans after the initial were applied for (due…[Read more]

I do agree that I think it’s politically difficult to remove negative gearing any time soon and this would have unintended consequences for the greater market. In the medium to long term, having gearing quarantined to the property or the asset class would be a good balance, as it would disincentivise long term negative cash flow whilst still…[Read more]

Good pick up – you’re right there. :)

There’s also fairly regular Melbourne meetups listed here: https://www.propertychat.com.au/community/forums/networking-meetups.24/

Barring personal emergency (fallen off a boat – this has literally happened to an Australian broker), that’s a little too long without returning phone/emails.

Good to hear that it’s definitely all approved and signed up however!

That is very odd – in terms of the refinance was the loan actually approved and you’ve signed the loan offer documents detailing your new loan etc? Heard enough horror stories when subpar brokers have their loans declined and hide from the borrower as they don’t want to deliver the bad news.

In any case it’s unacceptable to not be able to get a…[Read more]

You can do it if you like, however the ATO isn’t silly and can see when things are a scheme primarily setup to reduce tax and will then deny the tax deductions for it.

This usually gets brought up when people come up with ideas to try reduce their tax with these kinds of setups:…[Read more]

They’ve really done a number on your dads situation.

Speak with an investment focused mortgage broker – they will be able to determine whether theres any alternative option to drawing out the funds required to cover those remaining purchases, or if you need to go down another pathway.

Not a great situation, but life is full of challenges.

In…[Read more]

It is dependent on the lender and product – generally 80% is the norm for shading of rental income, though there are some lender products which accept 100% of commercial rent after outgoings factored. The article written above is an example of a lender which does this.

It all comes down to your goals and what you want the investment properties to achieve. If you’re looking for investments which will provide you with a higher yield – then Hobart is definitely a place to consider.

The market has been moving up there, yields are still a lot higher than the mainland but thats not surprising considering it’s a small regional area. Historically Tasmania generally jumps up considerably in short busts than stagnates for years, so be careful to not assume the growth will continue trending in any linear fashion.

YIP wrote about…[Read more]

Couple things:

You won’t borrow 100% on the existing property – you need to retain some equity in there, ie 20% of the value if you want to avoid LMI so that would provide you with a maximum of $480,000.

In reality however you cannot claim tax deductions on this loan if it’s being used as a deposit for your new personal residence – as its not…[Read more]