Poor clients – having a ‘broker’ with nfi asking questions on a forum.

Or alternatively, buy, renovate, retain and buy again with equity gain. $0 CGT attributed.

Flipping is a great way to make money for the State government, real estate agents, conveyancers – but not so much the person doing the flipping.

Definitely the way to go. One option I’d suggest is revert the soon to be PPOR’s loan to interest only and put the funds in offset instead of paying the PPOR down. That way if you want to buy another PPOR in the future you can just access the offset funds and retain deductibility on the remaining investment debt – much like you’re doing now.

I very much doubt the tenants would even notice the type of HWS used.

A couple years ago I got a call from one of my property managers saying the tenant had organised an electrician to fix their hot water service as it had stopped working and they’d let me know how much the bill was. I was quick to say I would not be paying the bill. Why?

It…[Read more]

I very much doubt the tenants would even notice the type of HWS used.

Update:

It’s been announced – rates for investors will increase 0.47% effective 7 September. Owner occupier rates are being adjusted down – the AMP Pro-Pack can get as low as 4.12% variable to try draw in more business which isn’t investor related.

Welcome to the forum Benny.

Great question and always a double edged sword – fundamentally they can both work to your advantage. A PPOR for initial purchase can be used as a future equity base to make future purchases while you try to erode your debt as quickly as possible and increase your equity (renovations?).

The alternative if you can…[Read more]

The BDM’s I’ve spoken to from AMP have said they’re looking at consolidating the book to re-enter towards end of the year, so it’s a temporary change. Meanwhile they’ll try to be aggressive in gaining owner occ marketshare.

To correct Richard, there isn’t a 1% increase for the existing loans – only those in progress. Existing will no doubt see…[Read more]

Commercial generally has significantly higher yields than resi, but that’s just due to the higher purchasing constraints meaning the prices aren’t as diluted.

If you had pure cash to place on purchasing property then yes- you might well just go for commercial to maximise your return potential. But realistically most people grow their portfolio…[Read more]

Very much doubt this is the beginning of rate rises across the board – it’s just ratcheting up of rates for investors as a part of the APRA crack down.

Quite a simple process – be careful to work on your end vals on those sub 300sqm blocks, the market doesn’t take to them as nicely. Sometimes a smaller 2 splitter will result in a higher return on investment as the block size will be above norm at 400sqm+ for a new build and your construction will be cheaper per sqm due to less narrow width…[Read more]

Northern Adelaide suburbs for the most part, you can pick up the odd one down south for a reasonable yield.

Generally you’re lucky to see a 80% return on capital spent on the GF – they certainly aren’t a capital growth tool.

Be very careful to as I’ve seen a number of approved granny flats valued as too low spec to be considered a seperate dwelling so have been attributed as a $0 value add and any rental income ignored for loan servicing purposes in…[Read more]

Planning policy is pushing for infill to support the growing population in SA, instead of greenfield releases.

With the current councils largely being resistant to broadscale townhouse/apartment development, standard subdivision with villas is the most common option AND simplest – so very easy for the average person to take on.

This low…[Read more]

Casual employment is a non issue for most lenders these days – the paid defaults would be more of a show stopper.

How much are the defaults for?

Go through a broker who can look at your specific scenario and test the waters before putting your deal through, to avoid any unnecessary extra credit file hits – every credit hit only reduces your…[Read more]

Definitely sounds like you need a mortgage broker, than accountant. A good investment focused broker is going to be able to advise you on how to maximise your borrowing potential, how to strategically structure your finances to work FOR you, not against you etc.

http://www.certuslegal.com.au/ <- majority of my clients have been using Certus, I’ve found them to be a pretty reasonable bunch to work with from my perspective.

Andrew Allen is very popular – but due to this can be too busy to take on more clients.

I’ve also had clients + colleagues use http://www.propertyzest.com.au/

The same serviceability requirements are required for companies, as individuals. They will need to see 1/2 years trading income, or if it’s just acting as a holding company the income of the director/s.

Obvious downside is lack of CGT discount, though there is the upside of max taxes at the company rate.

Certainly possible – it would just require two applications.

First application releases the deposit funds for the purchase, solely secured to Property A.

Second application is used to purchase new property, solely secured to Property B (new purchase).