I would suggest exclusive over general – just like selling property you want the agent to be focussed on selling your asset, not half arsing it as they think there’s others selling it.

I know people in the game who specifically will not take general authority or if they do, will keep it on the backburner as they see it as barely worth the effort if they may get cut out of the picture at any point by another party securing a sale.

I do agree that I think it’s politically difficult to remove negative gearing any time soon and this would have unintended consequences for the greater market. In the medium to long term, having gearing quarantined to the property or the asset class would be a good balance, as it would disincentivise long term negative cash flow whilst still recognising previous losses stopping an unnecessary tax burden at a later date.

Effectively this would be the same as how companies etc run – which provides a fair balance to the business and ATO.

There’s also fairly regular Melbourne meetups listed here: https://www.propertychat.com.au/community/forums/networking-meetups.24/

That is very odd – in terms of the refinance was the loan actually approved and you’ve signed the loan offer documents detailing your new loan etc? Heard enough horror stories when subpar brokers have their loans declined and hide from the borrower as they don’t want to deliver the bad news.

In any case it’s unacceptable to not be able to get a hold of your broker over that time – be it phone, email etc.

Sounds like a particular broker I know of who is notorious for that, their initials aren’t AC at all?

They’ve really done a number on your dads situation.

Speak with an investment focused mortgage broker – they will be able to determine whether theres any alternative option to drawing out the funds required to cover those remaining purchases, or if you need to go down another pathway.

Not a great situation, but life is full of challenges.

In terms of drawing equity and living off it – it sounds like he was told about a living off equity strategy – with the government regulator changes this is effectively not possible unless you have a substantial portfolio generating significant cash flow – at which point there would be no need to get yourself into spiralling personal debt just to meet living costs. Of all things he really needs to chat with a financial adviser so he doesn’t get himself into long term stress and a lacklustre retirement. Feel free to flick me a message if he wants the entire situation looked over in terms of lending + how he can work his way into having a manageable retirement, it’s a bit sad how far this has gotten so far.

It all comes down to your goals and what you want the investment properties to achieve. If you’re looking for investments which will provide you with a higher yield – then Hobart is definitely a place to consider.

Couple things:

You won’t borrow 100% on the existing property – you need to retain some equity in there, ie 20% of the value if you want to avoid LMI so that would provide you with a maximum of $480,000.

In reality however you cannot claim tax deductions on this loan if it’s being used as a deposit for your new personal residence – as its not for investment use.

The ATO does not look at what property that the debt is attached to, but what the purpose of the funds are. ie in this example the 480k would have been used to purchase a new residence, so no deductibility.

To try gain deductibility on the debt you could potentially either sell the property to a spouse or a trust you control to then allow you to re-gear the purpose and direct the funds for the deposit, but this will trigger stamp duty and potentially other tax events – best to speak with your accountant.

I’d rather avoid managed apartmnets/complexes like the plague. In general you’ll forfeit any/any reasonable chance at capital growth, hence why the yields are higher than norm. Likewise income growth over time can be stifled.

There’s very good reason why lenders don’t like to allow people to borrow for these ‘investments’, they’re generally duds which see the investor going nowhere over the long term.

Generally they will want to see two years history of dividends being received evidenced via tax returns. Some lenders will also cap the amount of dividend income yield – deeming it only at a marginal amount.

Few options, but generally dividends aren’t big serviceability buffs compared to residential property rents or paying down non deductible debt.

Not from Tasmania but have a few of our clients looking around there/who have bought there right now.

Not that big a place at all, but Invermay tops the list for most popular in terms of clients buying there consistently. Strong yields on aestethically quite ‘pretty’ timber clad homes around there.