This year I’ll be taking on a new flavour of the reno-reval strategy (as I’ve outlined on our blog: http://www.precisionfunding.com.au/11366/)

Instead looking to do a commercial redevelopment, including facelifts and restructuring floorplans to be more conducive to businesses of today – which are very different than 20+ years ago.

Indeed that is possible – but the same could be said just by buying a normal standard purchase in the same areas. The kicker for a lot of OTP deals however where there is strong growth is that most contracts have clauses wherein the developer can cancel the contract – which has regularly happened in the Sydney boom. Developers cancelled…[Read more]

That’s quite a common scenario – especially with businesses which are still in their early stages.

It’d be worth sitting down with a financial adviser to understand exactly what you can and cannot do with your super, whether to setup a SMSF etc. If it’s viable you can then look at the finance options for moving forward – if you’re not making…[Read more]

Indeed – also a 3.99% 3 year fixed rate available for both investment and owner occupiers. This one won’t be around for long no doubt before it’s snapped up.

OTP is rubbish – especially for investors. You’ll end up with a high strata low CG property due to the ever growing supply and limited demand.

Anything which has rebates generally shows the overpriced nature – which valuers can take off the purchase price, affecting LVR’s and deposit requirements.

The other fun side of it all is if values are…[Read more]

It really depends on the types of properties you’re looking at purchase, residential/commercial etc. There are options which will look primarily within the super structure – but this really comes down to the personal numbers.

When you say your business only covers costs – is this only business costs? How do you support yourself financially?

This…[Read more]

We’re negotiating some reasonable rates with CBA at the moment – PPOR fixed rates down as low as 3.99%, IP fixed at 4.19%. Variable investment rates at ~4.37%.

With the refinance rebates they’re also offering, it makes for a competitive offering for those looking to move.

St George – fully owned subsidiary of Westpac Group. :P

Just call up Westpac saying you’re looking to leave the bank if they do not sharpen their pencil – this will usually get your rate in a most competitive space if possible.

Generally the developers I know will provide a % return over x time through purchasing units in a trust. this might be 10-20% over 12-18 months and or stock at a set value which is below market price. Not impossible, but you need to find the right people.

You’ll find all banks do this – it’s in their T&C’s within the loan contracts. Sometimes lenders will inform customers of up and down movements – but there’s limited value in their eyes in spending significant funds in mailing every single customer to tell them they’re going to start charging them more – doesn’t look great in any case.

The rate…[Read more]

They do not need to inform you of an impending rise. Usually online banking will show updates of interest rates etc – at the very least your current rate.

Terrible investments – highly restricted lending available which flows onto limited growth etc. The only people who generally make money out of retirement villages are the managers of the sites.

BankSA does not charge different rates for interest only vs p&i, however your interest rate is very much likely to change from your fixed rate when it goes to variable.

Is there any reason why you want to only go interest only for one year? Is this your own residence, or an investment property?

Holding right through that period was an absurd idea – I remember at the time most people who were actually investing in the areas went in knowing they should only hold for *months* before the market died. Same for all mining towns – a small shoot up whilst demand is strong and no new housing comes online – then SELL.

Sensationalism sells…[Read more]

It’s possible, but isn’t a very common setup. Company held property does not receive the 50% CGT discount, which is no doubt the main reason why most don’t bother with a company ownership structure.

For asset protection, it’s generally a trust with corporate trustee. CGT benefits remain, asset protection and a few other benefits dependent on the…[Read more]

Generally I put it in as an email with the offer form, with all T&C’s completed. I always put in an expiry date (48-72 hours), so it puts pressure on the sales agent to have it reviewed and get back, instead of shopping the offer around to other buyers to see if someone will outbid you.

Very much dependent on the specific borrowers financials and scenario. Long term having the partner on loans will assist as it will significantly reduce the living expense calculations – however depending on their income/debts it could also lead to a dramatic increase/decrease.

I’m personally not a fan of creating market distortions – which different tax treatments of properties based on new/old. This would create a new bubble for OTP/house and land.

Unfortunately no party has looked at creating a long term sustainable system, instead putting bandaids over the existing cracks in the system created by previous interventions.

You can get 90% LVR’s fairly easily, so factoring in stamp duty and other government charges, you’re realistically looking at an effective ~15% deposit.

Well worth it if you’re looking to grow an investment portfolio, as the LMI will allow you to leverage into more purchases sooner.

I’ve written an article which outlines the cost/benefit of LMI…[Read more]

You can get 90% LVR’s fairly easily, so factoring in stamp duty and other government charges, you’re realistically looking at an effective ~15% deposit.

Well worth it if you’re looking to grow an investment portfolio, as the LMI will allow you to leverage into more purchases sooner.