LMI exists for a reason – if there was a simple way of not having to pay it no one would!

The only way you can is either via being in a relevent profession and meeting their criteria (doctors, lawyers, accountants and a few others), or the occassional 85% no LMI offer. The latter is generally at a higher interest rate and less desirable lender, and restricted to P&I owner occupied loans.

Doesn’t need to be in a trust – the ‘loophole’ is that the definition is something around never owning a property you’ve resided in, so you can still buy investments but claim the FHOG at a later date.

This is very common and have had clients use this strategy for years without issue.

Most people think Sydney will be coming off the boil for the next few years after the recent huge spurt in growth (and this has already started happening) – so not necessarily the best time to buy. Same deal for the regionals.

Don’t use any ‘investment’ service which pushes new houses/house and land/off the plan – their business model is just to be a sales agent for developers where they get paid a commission. They have no interest in selling you a good quality investment, just earning $$$. Generally these properties underperform massively and a general laughing stock of the Australian investment community.

A more suitable option is definitely using a buyers agent if you’re needing specific assistance in finding a property – plenty across Australia so you need to find one in the area/city you’re wanting to buy in.

Jacqui is great, she’s an ethical player who knows her stuff.

Launceston is reasonable, however it has had a fairly decent size increase in prices in recent history so you’d be coming in at the tail end of growth unless you think its going to go to an exceptionally high growth pattern compared to it’s history. If entry price point is your primary concern then you can otherwise find property in mainland metro capitals which may have more consistent long term outcomes and not buying into a market which has already grown significantly in recent history – ie Adelaide.

Terryw wrote:

I think it generally best to find a town planner in the suburb of the land, or surrounding areas as those planners may be more familiar with the relevant council than someone far away.

Definitely – use a local planner. They’ll have a firm understanding of the local planning laws/council and if there are specific requirements the council will be looking for, exceptions they’ve allowed in the past etc. This is incredibly important as it can be the difference between getting an approval or just being knocked back without any further consideration.

https://www.certuslegal.com.au/ – recommended and used by many investors.

Straight away – you would be better using the cash funds fully towards purchasing your own home, and then a good investment focused broker can setup a line of credit/equity release against the property for you to be able to draw deposit funds for an investment purchase. This means you’ll have little/no mortgage on your own home (no/little bad debt), whilst maximising the investment debt (good debt). It’ll make your accountant happy and maximise your ability to borrow, whilst keeping more money in your pocket.

It’s not always about owning things outright from day 1, but sometimes debt used carefully can help you build a portfolio quicker, which then later can be paid down and a combination of growth in asset values over time to build your wealth.

Duplex properties have their place, just like any other type of investment property. Always remember that it’s important to first establish what you’re trying to achieve with the investment property – is it growth, rental return, a mix? That will dictate the type of strategy for buying investments. Duplexs generally may not perform to the exact same level as standard freestanding houses if on a single title – as it doesn’t fit the profile that most buyers want (a single dwelling) – so you miss out on that desirability (and potential emotional purchasers), instead it’s focused on investors who need the numbers for an investment to always work.

If the duplex is split on two titles that’s not so much of an issue – however then you have to ask what the value is in owning two properties in such close proximity than spreading your investments across different areas to exposure yourself to different growth markets and de-risk dud timing/market selection.

As to lenders – yes most do but each bank has different rules regarding it – some are certainly better than others so it’s best to have a good investment focused broker to help you with selecting the correct lender otherwise you’ll end up putting in a larger deposit than required, or be restricted on what products you can use.

I think you’ll find by nature every product like that is going to have terrible reviews – its a review bias. If you have an insurer and things go smoothly you’re not going to bother googling up random product review websites to say they did a good job. If things don’t go your way on the other hand..