Weigh up the potential selling price vs selling in the future? Does the property cost you money to hold? If so you need to factor that into any speculative longer term profit.

The only two real influences you have on the time it will take to sell your property is marketing and price. If your marketing is handled by a capable agent then realistically, you can either reduce your price until the market jumps on the property, or ride it out for the price.

When you sell a property you can choose the price or the time it…[Read more]

Paying extra repayments isn’t increasing your costs, you’re just reducing your debt (which in turn reduces your interest making it further cash flow positive!

As Terryw has touched on, it’s a poor line of thought to try to lose money just to get tax deductions as in the end you’re still losing more money than you gain through deductions.

As previously mentioned, yield isn’t the only factor. If comparables are well below yours it’s not going to be an easy sale.

~9.5% for a fully furnished student accom isn’t necessarily screaming a great deal, more an accurate pricing of the risk involved.

Best of luck!

Hey David,

There’s plenty of brokers on the forum who have shared a wealth of knowledge here – have a read around and see if one fits your goals. :)

Hi Chirp,

Are the four villas each on their own title, or all four are on a single title? If they’re on individual titles almost every lender will consider them at 90-95%, however if on a single title theres only a handful. Thankfully some of the ones which will consider it are decent lenders, not lenders of last resort!

Lots of similar companies around which use this to circumvent the realestate.com.au ‘agents only’ rule.

Just another option to those selling their homes.

Thankfully it’s only Bankwest at this time – not a lender that investors should be using in any case. The adjustments to serviceability models and rate discounting removals are much larger impacts IMHO.

Interesting times at the moment – as always we need to evolve with the challenges presented to us.

Technology makes it very easy these days to work through phone/email/skype etc. Combine busy schedules and it makes sense that a lot of people choose this route!

APRA has been applying a lot of pressure to a number of banks over the last few weeks which have indeed meant that the serviceability models have been tightened. A key example of this is with AMP – whose niche policy set have been wiped out over night. It appears this will be following through with quite a few other lenders, as APRA attempts to…[Read more]

To expand on your idea, a common strategy used by a lot of my clients is to do small renovations on cash flow neutral/positive properties, draw out the equity from the increased value to buy another, rinse and repeat. Eventually you build a sizeable portfolio which has positive cash flow. Allow rental increases over time to grow you a healthy…[Read more]

Generally the properties are valued by a valuer (they do not work for the bank, but are instead contracted to value properties individually). The process is fairly simple – the valuer assesses the property in question through a lot of it’s variables (property size, type, block size, fitout, location etc), and then compares it against other…[Read more]

5-8% for an unsecured business loan for a business which can’t get lending through traditional lenders is quite fanciful.

Depreciation really should be considered as the icing on the cake, not the fundamental driver behind a purchase. OTP can be fraught with issues (overpriced so they fail valuations and no means of backing out of contract, long delays (I’ve seen investors stuck in contracts where they will most likely NEVER receive the end product or their deposit…[Read more]

A lot of great responses here. As always, sometimes patience and saving more can lead to more fruitful results – remember how long it takes to save that initial deposit in total, so a couple more weeks/months is a drop in the ocean!

As per property selection, I wouldn’t touch a property in a large complex with a ten foot barge pole.

Managed funds as in shares?

Leave this one to the legal eagles, but assuming you sold the shares and then made the purchases in the trust there wouldn’t be an issue as long as it meets the usual lending criteria. Otherwise you could potential lend the funds from the trust to a person/entity outside of the trust – speak with a lawyer/accountant…[Read more]

Any taxation changes need to make sure they encourage individuals to self fund for retirement – the current system is clunky.

I’d rather a complete re-haul of the system than a tax grab. Earlier elected access ages via annuity but at a low tax rate etc.

If you’re able to lend him the deposit and serviceability permitting it may well be possible – done a few lately for parent’s helping their kids by lending the 10% deposit to them – all OK with the banks.

There is always the guarantee option providing security from a property held by the parents, but this does tie up the finances a lot more while…[Read more]

Jamie hit the nail on the head, all resolved though. Reply sent through Master. :)

Hi Master – you can give me a call on 1300 656 299 or send through an email to info@xlfinancial.com.au and we can have a discussion from there.

As per fees – Like most brokers in Australia, I do not charge any fees to facilitate any lending. Instead the lender used is charged a commission amount. This is in contrast to a lender having to pay a…[Read more]