Generally you’ll do better in Adelaide net yield-wise buying an outer suburb freestanding house over an inner suburb unit, so it depends on what you’re trying to achieve. I’d personally avoid any apartments/multi level units and stick to small groups of 3-4 units if you do want to go down that path, as these give you more potential to renovate and…[Read more]

How you pay yourself doesn’t matter in the lenders eyes. The way we need to calculate income for lenders calculations is to add back any directors wages etc – dividends happen post tax returns (which is what is used to verify income).

It all comes down to the revenue and expenses tables on the tax returns.

As you’re accessing equity from the same property, it’ll need to be with the same lender.

Theres better options in my opinion than Suncorp for building a portfolio. If you want to get particularly fancy, you can setup a debt recyling structure to reduce your PPOR faster and continue to draw out investment lending – we’ve done this with a lot of…[Read more]

As your accessing equity from the same property, it’ll need to be with the same lender.

Theres better options in my opinion than Suncorp for building a portfolio. If you want to get particularly fancy, you can setup a debt recyling structure to reduce your PPOR faster and continue to draw out investment lending – we’ve done this with a lot of…[Read more]

Going on the savings/equity figures you’ve mentioned you’re potentially in a position to make multiple investment purchases – quite a nice situation to be in.

We’re seeing a number of clients moving there focus from Sydney to Newcastle due to price surge in Syd, so I wouldn’t be surprised if the market sees a flow on effect as more people look…[Read more]

If you were to purchase, I’d still suggest it might be worth considering finance on the property. You can still park the leftover funds in the offset for the loan – this just at least leaves the flexibility to take those funds out for other purposes should you need, whilst maximising the deductible potential + nil interest unless used.

Is there any reason why you don’t make the purchase solely in your name, or just your brothers and yours? You should only need 20% deposit maximum if structured correctly.

You need to run the trading through a business for at least 12 months, 2 financial years to cover off on most lenders policies.

It comes down to the lender – but this is very easy to manage, you shouldn’t have any problems if your broker knows what they’re doing.

Category 1 is actually the best type, its cat 2 onwards are seen as higher risk by insurers/lenders.

As always, if you’re concerned whether your broker is able to complete slightly left of centre transactions,…[Read more]

Definitely keep it split from investment vs personal use – but preferably if you know the exact amounts needed then have the investment portions split for ease of accounting.

Pulling out that amount of funds will depend on the lender, some will restrict equity pulls greater than 50k, others will allow 500k without blinking an eye.

In the last…[Read more]

Generally a duplex is more likely to not lose equity, than a granny flat scenario. In the end it comes down the individual property, so best to crunch the numbers on what end values would look at vs costs.

Check the make good provisions for the head lease – it’s been the case in many States that housing commission/State housing has been lax on inspecting and managing their own stock. This is where there’s been a steady stream of destroyed houses come into private hands from the State government through gradual selloffs.

Brisbane CBD, much like many other capital cities at the moment are being CRAMMED with apartments – not great for the supply/demand equation which dictates capital growth. Avoid.

Traditional freestanding (especially queenslanders) in the inner ring will no doubt continue to show strong demand throughout the future due to their limited…[Read more]

Interesting concept. I can understand asking for a longer than necessary settlement etc – but the more obscure offers will likely put the agent offside or signal that you’re a newbie more than anything. Most agents I know will likely try to persuade the vendor to go for the path of least resistence – the easiest offer not the best. I’d sooner be…[Read more]

You’ll have to get specific advice from an accountant – but I doubt you’ll be seen as having a real estate ‘business’ just by buying and holding. If you develop regularly then certainly, but otherwise it’s just being an investor just like any other class.

There’s quite a few investors out there with 20+ properties which the ATO don’t determine to…[Read more]

We see periods of rises, periods of falls and periods of flat trending prices. Currently in Australia there are markets doing each of these.

I can’t see any systemic changes which will cause a major crash – just more of the same. Much as the previous Sydney peak in 2003, I can see the prices tempering there and values moving sideways until…[Read more]

Whilst I understand from the planners perspective the basic numbers crunched make a ‘newer’ property appear to be the best option due to depreciation – in reality you need to weigh up the fundamentals of a new build vs older property for future growth, yield etc. Never buy an investment property for depreciations sake – it’s icing on the cake and…[Read more]

Interesting to be running a flipping strategy in a downtrending market – this may allow you to get desperate sellers to accept lower offers of course.

The big risk in it all is that you’re swimming against the current and the market could drive down at a faster than expected pace – wiping out any potential profit.

Have you ever done a flip like…[Read more]

Agree Richard – valuations rarely recouperate the full cost of the granny flat, so it’s almost purely a cash flow play. I’d personally rather invest that capital into multiple other investments which in the long term will increase your portfolio size and allow for larger growth/cash flow.

Short term vs long term outlooks.

I’d suggest sitting back and deciding on whether business or property comes first – if business this can delay you entering into the property market for some time due to finance requirements.

cash flow vs capital growth is a topic which has been debated since the dawn of time. Cash flow can be quantified and estimated accurately for the future,…[Read more]