You cannot ‘structure a loan borrowed against the offset’ – an offset account is a type of transaction account, not security.

This is the way it would be achieved:

Existing Loan: 200k
Offset account: 200k

Place 100k of offset funds into loan account, reducing existing loan balance to 100k.

A new loan application is submitted for 100k, whilst…[Read more]

The loan is most likely principle and interest (especially as you have said its a fortnightly repayment, interest only is generally monthly ONLY), so even though you are being charged less interest, the minimum repayment figure is still being debited. This just results in the principle decreasing at an accelerated rate as there is a lower than…[Read more]

The loan is most likely principle and interest, so even though you are being charged less interest, the minimum repayment figure is still being debited. This just results in the principle decreasing at an accelerated rate as there is a lower than expected interest charge.

I’m assuming the real issue here is that the contract is invalid and now they’re not wanting to sell to you.

Speak to your solicitor regarding this issue to see if there’s any recourse.

ONLY the interest.

Generally we structure investment loans to be interest only, that way you can use the funds which would otherwise be used to pay the investment loans principle to pay down your OWN non tax deductible home loans. This increases deductibility, reduces your home loan faster.

The interest rate will be charged at whatever the loan’s rate is – not what the funds are used for.

On a more important note – DON’T use the funds directly from your offset account, as this will mean you’re limiting your tax deductibility by using cash funds instead of borrowing specifically for an investment purpose. A much more effective…[Read more]

Really depends, usually 3-5k for a basic kitchen.

I’ve personally been using a supplier for all my Adelaide properties for a couple years now which generally come between 2-2.5k for a kitchen, valuations always come up a treat. This is one from one our recent renovation projects, came in at 2.5k for the kitchen:

Flipping is generally not an exceedingly profitable venture in Australia for the most part, generally teh rosey figures some people provide are in markets which are rapidly rising so it masks the true profitability.

You’ll be hard pressed make a reasonable return in a flat/declining market through a reno/flip strategy, or will be two steps…[Read more]

Only if your LVR will permit, they don’t just hand out money willy nilly.

IE if you’re only eligible for a 90% LVR and the purchase price was 500k, the maximum loan you could achieve is 450k.

What’s the purchase price, and your deposit?

I once won a prize for a finger painting I did in pre-school, is that creative enough?

Indeed – a lot of my clients use BPI for their inspections, haven’t heard anything other than positive feedback from their experiences.

I’ve used them myself for some of my latest purchases and they’ve been quick to act, which is important when dealing with tight schedules.

There are companies which specialise in building reports for new builds, who know what defects can be hidden in new builds especially.

I’d definitely spend the money on it, as very small defects can cost you a LOT of money.

Realistically 90% LVR inclusive of LMI is a great option for IP purchases for as long as possible (unless the person has excessive amounts of deposit funds available for a large portfolio expansion).

Unlike 95% LVR’s which are getting nigh on impossible, the costs of a 90% LVR are significantly cheaper AND allow you to draw any available equity…[Read more]

A sad but common story. The issue is always the same however – that people put their money into investments that they don’t necessarily fully understand, or neglect to look completely into as they’re sold on the returns they’re quoted.

Circa a 6.69% yield, reduced market size (as not a huge amount of owner occupiers would touch something like this) – not that stellar when you can reach similar yields for freestanding properties, or higher in quite a few areas in Australia.

Makes sure the capital growth potential is still there for the property, no point buying into a property…[Read more]

I’d say it was more an issue with the broker/banker than solicitor – price adjustments are quite normal and generally don’t go down this path.

A lot of clients buy sight unseen interstate – generally they will get a building and pest + get the initial inspection completed by a property manager who can take photos of any hidden issues etc.

I’ve bought properties locally that I haven’t even inspected – depends what you’re really looking for as an investment.

Same as Richard, we have clients all over Australia, US, UK, Europe, Asia etc.

Haven’t had any penguins from Antarctica yet – but we’ll keep an eye out. :)

Completely normal – generally where possible it’s best to get any negotiations out of the way before the finance being submitted – to stop any reworks being required.

So long as you have a sufficient deposit and meeting serviceability, it’s not that hard at all if the right lenders are used – one of our clients were just approved for their first homes at age 62 & 60 respectively. Have a chat with a broker who can have an indepth looking into your situation and advise of the options available to you.