Their currency is currently in deflation – it’s all just about margins.

3.35% margin between that fixed rate in the current inflation rate.

Australia has circa 2.8% margin between underlying inflation rate and comparable five year fix.

• This reply was modified 8 years, 6 months ago by  Corey Batt.

What to do? Time to get another accountant.

Generally I find they’re not the best bunch for investment advice – very conservative and not very forward looking. Not their job to provide investment advice in any case, that’s the realm of financial advisers.

Hey Jono,

David Traeger on this forums is an active Adelaide investor and property manager – well worth having a chat with. You’ll find us Adelaide investors usually catch up once a month or so for a dinner at one of the pubs in the CBD, you should definitely come along to the next one.

Details for meetups are usually posted in this thread: https://propertychat.com.au/community/threads/adelaide-cbd-catch-up.2382/page-6

Where abouts in Adelaide have you been looking at investing in particular?

Tax is determined by the name on the titles, not the loans so having your partner on there shouldn’t cause issues. As always though, speak to your accountant. :)

Cross collateralisation is always the work of the devil, so even though it may not seem like a problem – it never is until it is a problem. Well worth seeing about fixing that up when you have a chance.

I’ll leave the rest to the accountants to answer.

There’s a product ruling for it and a new of brands offering the loan – we’ve had access to the product for a few months now. Dependent on the exact figures of the owner occupied and investment property loan, it can be quite beneficial.

Keep in mind there are a lot of requirements for this loan – which are for the clients benefit, ie the owner occupied loan must be principal and interest, accelerate home loan repayment etc.

In property you generally don’t want to stand out from the crowd – it’s better to buy the average type of property, than the unique one. The issue is that you will limit your buyer pool somewhat as some buyers + valuers will see it detracting from the value.

There’s millions of houses in Australia, of which there are many A grade properties. Stick with the A graders to limit any value issues for the long term.

Probably a good idea to narrow down which city/State you’re moving to, before specific areas. Where you rent and where you buy don’t have to be related at all – it’s best to rent where most convenient for cost, lifestyle and work, whereas for investment you purchase purely on the properties individual figures and areas macro fundamentals.

It’s an idea which has been floated for a short while in SA – would lead to very interesting outcomes. Obviously the real estate industry is heavily for this proposal.

There’d no doubt be an initial surge in prices as affordability would rise significantly. Other things such as flipping would become extremely viable with the removal of stamps.

In terms of government revenue I can understand where the logic is – stamp duty is incredibly ‘lumpy’ as a major revenue source and doesn’t allow for effective expenditure control or maintenance, so having a broad base land tax would smooth this completely and allow for better spending patterns.

Just the usual joint ownership, be it in personal names or trust etc – it’s all much of muchness.

Bear in mind that if you purchase this next property jointly, should either of you want to continue to purchase any future properties separately then the banks for any future purchase will consider you to hold 100% of the debt but entitled to 50% of the rental income – which can have a significant impact on your borrowing potential.

If all purchases hereafter are joint there isn’t this issue, but it’s something to keep in mind.

Yes – and in many cases is a prudent move. Just make sure the equity is ‘accessible equity’, theres a difference. For example:

A property worth 500k, with a 450k loan has 50k in equity, giving it an effective LVR of 90%. It however has $0 accessible equity, as the lenders will not allow you to exceed 90% LVR for a topup/equity release.