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  • Profile photo of Corey BattCorey Batt
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    @cjaysa
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    I wouldn’t say it would be a huge factor, as the majority of properties pre/post ’85 have had works completed to them, which plays into the calculations. I’ve got properties build in the 60’s which have 5-6k depreciation in yr 1 because of renovations, whereas I also have late 80’s properties with limited depreciation at all.

    Buy investments which have strong fundamentals – depreciation is just the icing on the cake.

    Corey Batt | Precision Funding
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    Profile photo of Corey BattCorey Batt
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    Depreciation schedules cover the building itself, as well as the internal fixtures, fittings, improvements etc. This includes items which already existed at purchase, so long as the items are still depreciable by their age.

    There’s a whole other bunch of other factors including low value pools etc, where you can writeoff a lot of depreciation very early on – it’s not a simple calculation, hence why it’s well worth getting the experts in.

    Many Depreciation companies will only complete a depreciation schedule if there is sufficient deductions to cover the report in the first year at a minimum. I personally use and recommend http://www.depreciator.com.au for clients needing depreciation schedules – they’re well known for their fantastic service and quality of their reports.

    Clients of my business also receive a slight discount on their reports if they let me know they need one – feel free to flick me an email if you’re interested.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    @cjaysa
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    I’ve got quite a few clients who make use of buyers agents, with great success.

    If you know a particular market like the back of your hand it may not be hugely necessary, but for those buying interstate they can be absolutely invaluable.

    $10k is around the average fee being charged that I’ve seen.

    • This reply was modified 9 years, 8 months ago by Profile photo of Corey Batt Corey Batt.

    Corey Batt | Precision Funding
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    Profile photo of Corey BattCorey Batt
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    RBA and the money markets seem to think otherwise at the moment.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    It depends on the bank. Some will not revalue under 6 months. They don’t believe it can change that much in that time. Uneducated that they are!!! One I did I bought for land value as it was fire damaged. We spent $25K on the reno and we could have sold it for at least $90K more than we paid for it.
    I’ve not had to reval early as I had enough equity.

    Not only will some not allow a new valuation if it’s under x months, valuers will also struggle to attribute a higher value until it’s 6+ months from sale, even when there was clear under market purchasing.

    The easiest way to get around this issue is to do significant renovations, then the valuer can attribute the value increase to the works completed.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Profile photo of Corey BattCorey Batt
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    Just be sure to make sure you factor in any holding costs INCLUDING strata fee’s when determining whether the property will be cashflow positive. I’ve seen many a property touted as CF+ when in reality it was reasonably negative.

    Outer suburbs of Adelaide, rarely in Brisbane anymore, Tassie, regional NSW – common hunting grounds of the cash flow investor.

    Corey Batt | Precision Funding
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    Profile photo of Corey BattCorey Batt
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    Not hugely normal, I do know a couple brokers who do charge a fee for service.

    We’ve never charged any fee’s to clients in providing our services, nor intend to anytime in the future.

    Corey Batt | Precision Funding
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    Profile photo of Corey BattCorey Batt
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    Capitalisation of interest can be OK with the ATO in certain situations, but not across the board. You’d want your accountant to be 110% happy with the structure before going down that pathway.

    Corey Batt | Precision Funding
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    Profile photo of Corey BattCorey Batt
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    Yup not a chance of getting out of the Cert IV requirements unfortunately.

    There’s plenty of intensive courses however to get it pushed through ASAP.

    Corey Batt | Precision Funding
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    Profile photo of Corey BattCorey Batt
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    95%+LMI (most lenders 2% LMI capping to 97%, though you can go to 99.9% with a couple lenders) is the maximum. The only other ways to get around this are through family guarantees where you can get away with $0 deposit.

    Corey Batt | Precision Funding
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    Profile photo of Corey BattCorey Batt
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    Generally 5% deposit is the absolute minimum deposit, but this does depend on the lender being used. You also need to be able to pay for the ancillary costs which include stamp duty, solicitors fee’s etc. LMI will be applicable (and will certainly be expensive) but this can be capitalised onto the loans in most cases.

    FHOG can be counted towards the deposit, however you will still need to show the lender 5% GENUINE savings – this can be gotten around in some cases too.

    TL;DR – depends on your specific circumstances, but 5% deposit + costs at an absolute minimum.

    Corey Batt | Precision Funding
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    Profile photo of Corey BattCorey Batt
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    Commercial agreement, anything is negotiable.

    Can be a fixed agreement for x amount per month, or a % of the upfront and trail – this can extend beyond the 2 years.

    If setup right the aggregator can manage the split commissions and pay each party seperately, protecting all involved.

    What’s more important than cost is having a good mentorship which will be the basis for the knowledge of your entire business. A good mentor can mean you becoming a great broker, than mediocre.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Profile photo of Corey BattCorey Batt
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    If you’re entering the conversation questioning whether it’s a smart idea, I think you know the answer.

    I’d give this one a pass if I were you.

    Corey Batt | Precision Funding
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    Profile photo of Corey BattCorey Batt
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    Definitely wouldn’t say that purchase valuations go below purchase price very often, less than 1/100 times. Was this an OTP deal perhaps?

    Depending on the lender, you can either roll over to another 5 year interest only term, refinance to another lender/internally to gain another 30 year term or revert to principle and interest. P&I loans are where you will start paying back that principle.

    Corey Batt | Precision Funding
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    Profile photo of Corey BattCorey Batt
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    <div class=”d4p-bbt-quote-title”>DeanCollins wrote:</div>
    so what exactly makes the St George Portfolio loan sub par?

    Hiya

    It’s a LOC that you a premium for – you can do the same thing with a standard IO loan.

    Some people get into a big tangle using the portfolio loan. They think it provides ease – but they end up with a crossed up mess of properties.

    Cheers

    Jamie

    Absolutely agree. 3/4 clients I come across with these existing portfolio loan arrangements have nasty x-coll setups, poor mixing of investment and non investment debt and or fixed rates in the mix!

    I’d put the availability of offset accounts around 10 levels more important than LOC features – for the most part these loans aren’t needed when there are products available which can provide the same flexibility, with more features at a lower cost.

    Corey Batt | Precision Funding
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    Profile photo of Corey BattCorey Batt
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    @cjaysa
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    Give the council a call regarding the situation, they would be able to give you a lot of information regarding the ability to subdivide the property, whether the rear property is council approved etc.

    Be sure to make sure you can legally rent out both residences in it’s current format too, just because its currently being done doesn’t mean it’s legal. :)

    Corey Batt | Precision Funding
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    @cjaysa
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    The other question is what purchase price are you looking towards? It’s a lot easier to save for your first investment purchase at 200k than it is at 800k. Sometimes a cheaper purchase which may have the capacity to add value can help you leapfrog onto more properties at different price ranges in the future.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    @cjaysa
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    Charlie have you been still paying your tax obligations in the US over the last 12 years (global taxation)?

    Wouldn’t be very nice to start up an investment portfolio in the US, only to have it seized.

    Corey Batt | Precision Funding
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    Profile photo of Corey BattCorey Batt
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    You’re paying a higher rate for no realisable extra features. The rate difference can easily equate to over $1000 per annum in more interest charges. It’s just a Line of credit product

    The Portfolio loan is toted generally as a product for cross collateralising your entire portfolio, they give it a pretty name to make the client feel like a sophisticated investor. Much the same with AMP’s Global Limit loans, Macquarie Global borrowing limits etc.

    The Portfolio loan package fee = $395 too, not $300.

    A good way to flip this around – why is the portfolio loan superior to the standard variable advantage loans?

    These products do have a place, but they’re used for very specific purposes such as debt recycling.

    Corey Batt | Precision Funding
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    Profile photo of Corey BattCorey Batt
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    I wouldn’t say it’s necessarily GOOD or BAD. It comes down to the risk profile.

    If a fixed rate was 0.01% more expensive than the variable offering, but gave a single income family with a tight budget piece of mind, is that not a GOOD result?

    Horses for courses – don’t try gamble to beat rates by choosing fixed rates, choose them when you want a reliable repayment amount for the forward period.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

Viewing 20 posts - 761 through 780 (of 983 total)