The car lease will drop your repayments significantly. If you are looking to make a purchase/grow your portfolio over the next few years the lease will act as an anchor unless you’ve got sufficient income to absorb it. Best to speak to a savvy broker who can talk to you about your specific situation, and how a lease/cash purchase will play into…[Read more]

Network and align yourself with related industries which may have clients looking for the type of stock you have available. Accountants, financial planners, brokers etc.

I think you’ll find most of metro Perth will be negatively geared, but obviously the higher the purchase price the larger the negative gearing generally! Clients have been finding mostly yields <5% across the metro areas, with some inner suburbs floating around the 2-3% mark.

In any case if you make a purchase be sure to have your loan setup…[Read more]

Generally above 4 units on one title lenders it enters into commercial lending. There are some niche options out there however.

Have a chat with a commercial savvy broker if you haven’t already, who will be able to run you through your options across *multiple* lenders than just what any one lenders multi-units policy.

Is the intention to generate an increase in total asset value from titling each unit? Determine how much it costs to achieve, any increase in ongoing costs and whether this justifies the increase.

I’ve had some clients achieve fantastic results in metro areas doing this, achieving 80-100% increases in value, but these were purchased well before…[Read more]

Factor in the lost value of time with a subdivision, I’ve seen a few deals where developers have locked away significant equity/cash for 12+ months which could have otherwise been used to leverage into greater returns over the same period.

Repeated purchase/reno/reval can be a profitable venture if you do this consistantly in a cookie cutter…[Read more]

Get the tenants to pay property manager until end date, then agent can provide statement of accounts for hand over.

Good luck to your father self managing, switch over is the least of his worries!

Something definitely doesn’t stack up. It’ll be interesting to see what the banker comes back with.

Jaryd be sure to have a strong look over the strata details. Some apartment blocks have run-away strata fees which keep rapidly rising, eating away any profit. Naturally these usually are complexes with gyms, pools, spas etc.

I’ve seen apartments advertised as 7% yields, only to decrease to 3.54% after all costs are taken into consideration.

And depending on the scenario you can even increase the accessible equity up to 90%.

Hi Tracey,

How many units in the block?

It varies widely. Depending on the purchase price, security type, tenancy etc.

You can easily find some properties which are 10-12 with tenancies not worth the paper they are written on, likewise you can find blue chip national tenants with multi mil tenancies for 5-6%.

In general however I’ve found clients are achieving near on 10% yields if…[Read more]

That’s a common problem when you look at multi level sites with shares pools, gyms, saunas, tennis courts etc. Strata costs will only go one way too, up.

I would assume it’s a company spruiking overpriced negative geared properties, which is the common theme of companies which spruik the ability to ‘decrease taxable income’.

Has the property declined in value since the purchase? For LMI to be liable on a refinance in that scenario the LVR would need to have increased and or $ value of the loan in the meantime.

I won’t get into the Trust vs. Personal name debate, but it’s worth noting that VERY FEW lenders are willing to lend to hybrid trusts, compared to Unit Trusts, Dicretionary and personal names.

If you refinance before an official maintenance figure they will factor full expenses for your children being covered by yourself.

You’ll need to complete the constructions prior to settlement, as the purchasers will struggle to gain finance for split contract deals, let alone mid construction. :)

Whats your experience with development, is this your first? With these variables you may have difficulty gaining the desired rate, LVR AND facilities.

Have a chat with a broker…[Read more]

Unfortunately this is a type of scenario that I (and I’m sure a lot of brokers) get to deal with quite often. Your situation may be tight but your ability to service any payout will largely depend on the lender. Have a chat with a broker who can look at your scenario and provide you with options. In the meantime be sure to keep your payment…[Read more]

Development wise I know a few guys who place development sites under option, get DA approval and then onsell the site for a profit.

Financed a deal recently for a client who purchased off a party who onsold a contract from a company who puts contracts on properties about to be repossessed.