Duplex properties have their place, just like any other type of investment property. Always remember that it’s important to first establish what you’re trying to achieve with the investment property – is it growth, rental return, a mix? That will dictate the type of strategy for buying investments. Duplexs generally may not perform to the exact…[Read more]

Duplex properties have their place, just like any other type of investment property. Always remember that it’s important to first establish what you’re trying to achieve with the investment property – is it growth, rental return, a mix? That will dictate the type of strategy for buying investments. Duplexs generally may not perform to the exact…[Read more]

It would be very unlikely to a standard property in a metro area in Australia and have it indefinitely vacant. You can look up the vacancy rates by suburb here: http://sqmresearch.com.au/vacancy.php?t=1

Generally suburbs float between 1-5% dependent on how tight ownership is in an area.

I think you’ll find by nature every product like that is going to have terrible reviews – its a review bias. If you have an insurer and things go smoothly you’re not going to bother googling up random product review websites to say they did a good job. If things don’t go your way on the other hand..

1. Correct – the tax environment in Australia isn’t conducive to property flipping in general due to the significant erosion in net profit from government charges and CGT etc.

Some people still get caught up in it after watching TV shows promoting the strategy, but they generally gloss over a lot of the important total cost figures to show the…[Read more]

Indeed – this is definitely in the realm of a buyers agent. Best to use a professional when looking to make a purchase worth hundreds of thousands of dollars – than relying on a stranger on an internet forum to find a property for you!

For purchases just about every lender will rely on an appraisal (or if a valuer goes out, their rental estiamte).

For refinances such as your scenario there are still a number of lenders which will look at either an appraisal, use their own internal rental estimate tool OR look at your tax returns to see previous rental income on the property.…[Read more]

Realistically if you want to continue borrowing to invest the things you can do to open up more borrowing options are:

*either buy out your investment partner of their 50%, or sell your 50% to them
*increase your personal income
*cancel any credit cards/personal debt remaining
*either switch as much debt as possible to P&I OR IO – depending on…[Read more]

I’ve heard of some Australian’s using: https://www.selectamericanhomes.com/ a few years ago and were happy with their services. I can’t remember if they only worked in Atlanta or a broader geographic area.

It will completely dependent on:

*the shape and dimensions of the block
*utilities provision location
*type of subdivision that can be completed (ie requiring full duplication all services or can dual use be used)
*council that the land is located

There’s no way to ascertain any meaningful numbers on the internet like this – you would be best…[Read more]

Indeed – I’ve had a few clients who have moved timber houses with ease – I was surprised how well it worked.

Pricing has definitely gone up a bit, I’ve seen move and establishment costs at circa $50-60,000 – but this is highly dependent on distance, type of property etc so you would need to get specific numbers before doing any project to make…[Read more]

Hey Moresh,

This is done by a few developers that I know already – easy way to get funds + presales requirements completed in one hit.

As Terry has noted, it’s well worth looking at what is the most effective way to structure this to minimise tax and government charges.

Most important is supply/demand of property in a specified area. What’s going to impact prices of property in an area more – oil prices or a doubling of stock coming on the market or a reduction in population in a local area reducing the demand?

Definitely don’t close the PPOR loan down – as this is coded as owner occupied for purpose the lender will be giving you the lowest rate compared to investment use loans so it’s best to hold onto that.

Either keep the funds in offset or into the redraw account – be careful however as not all lenders are the same in how they treat fully repaid…[Read more]

With house and land or construction loans – the lender looks at the total security and loans based on the combined costs/value est. For example if you bought a block of land for $300,000 and wanted to build for $500,000, pending a valuer agreeing on an end value at that price they would look at a total value of $800,000. From there you can…[Read more]

I’m a fan of the Salisbury council for <250k purchases. Quality is a touch higher than Playford Council/Elizabeth, for only a slightly higher price + slight reduction in yield. This will generally give you a balanced neutral yield/growth performer for the long term.

Once of my colleagues who is a mortgage broker in Adelaide wrote about purchasing…[Read more]

You’re right Dan – it definitely would need significant adjustment. These days a yield of ~6% should produce a cash neutral/positive scenario with most properties. The ones which will throw it off is on the ongoing property costs outside of interest expenses – ie strata, maintenance, water/council etc.

A stat dec used to work fine in the past – these days they have a lot less weighting and in this scenario I’d suggest there is not much chance getting it approved with it after they’ve asked for something more substantial. Once an assessor gets something in their head it’s not likely to be budged.

Yes Simon – this is 100% to do with the purpose…[Read more]

Have you found out what the funds investment was used for? (ie a specific development)

They may have a development which is nearing completion but not fully settled hence why the delay in the return of funds. Best to enquire with them as to the specific reason for the delays so you can have a firm understanding of where your funds are and when…[Read more]

A FP will need to generate a full statement of advice, which can cost a few thousand, require a full analysis of your financial situation etc.

As to the lender asking for this information – effectively borrowing above an 80% LVR without having a property under contract to show the purpose of funds is going to trigger these kinds of requests.…[Read more]