Hi Simmo,I agree with a number of the forumites; that 37% gearing is too low. You should look to gear up to 70% to accelerate your wealth accumulation. Seeing that you work in an overseas bank, the gearing limit tends to be around the 70% (I know the banks in Singapore tend to work with that figure post-GFC). Also, while you have taken a very…[Read more]

Oh yeah… way too funny. RegardsDaniel Lee

Hi Morgan,My wife and I completed a simple low-budget reno in July 09 on a 2 BR unit we had purchased in May 09. One thing we read and subsequently found to be very true is that we made our profit when we purchased. In the midst of the mad rush that was the First Home Buyer Boost, we bought the unit at $375K, according to council valuation, while…[Read more]

Hi GPD,A couple of factors to consider.1 – Why are you interested in going into property investing? (Probably the biggest factor)2 – Area of expertiseTo me, if you are after a wealth accumulation strategy, clearly working on your business is the best option. You know your industry inside-out, and are doing very well from it. By diversifying into…[Read more]

I'm still waiting on the latest update.Just checked the website as few mins ago and it still said the there ceiling insulation for rental properties will be removed.http://www.environment.gov.au/energyefficiency/insulation/index.htmlAnd I was thinking of utilising this benefit next yr! RegardsDaniel

Hi, MichaelAre you saying that Ongoing Rebate Plan (ORP) and Single Rebate Plan (SRP) brokers work in similar fashion to businesses like YourShare or InvestSmart, where a portion of the upfront and trailing fees and commission are reimbursed to the borrower?Sound like a question that I asked in this forum a few months back about YourShare setting…[Read more]

Hi, MichaelWe wanted a basic loan for our IP via a DT, so I went with a mortgage broker while looking through Infochoice on my own. Infochoice came up with MyRate as the lowest cost. I then contacted MyRate and found out that they are backed by ING. As there was a difference of 0.06% in interest rate with almost everything else roughly the sam…[Read more]

Hi, PosThe wife and I recently set up a DT with Corporate Trustee and went with MyRate. The consultant there understood how the whole Trust worked, and was mainly concerned with our salaries, because that was a key factor in determinating the eligible lending amount.The lending rate was still the same as if borrowing in our personal names. The…[Read more]

HiThe wife and I went to check out a rental in the lot of units where we had just purchased our first IP. The unit was rented out before official inspection, with potential renters waiting outside told that the unit had been rented by someone who had not even inspected it at the first place.I think, from a rental point of view, there has been a…[Read more]

Hi, MiclkcLooking at a financial point of view, you have to options for funding a deposit for your IP; cash or equity. Cash is really king at this time, so I suggest going to your lender to see how much equity you can access on a separate loan. Also find out how much large a loan you can finance on your income. Most lenders are limiting LVRs to…[Read more]

HiI recently took up a 90% LVR IO loan with MyRate via a Family Trust with Corporate Trustee, and they allowed the LMI to be added on top.RegardsDaniel

Hi, Investor SpongeThe wife and I have the very same idea as well, as we have just purchased our first IP, and plan to buy our next PPOR in a few yrs time and covert current PPOR to 2nd IP.What I would do is continue to keep my spare money in the IP's offset account. Not ideal as it reduces tax-deductible debt, but better than putting money into a…[Read more]

Hi, NickI like your 'new' kitchen. Am embarking on a small reno ourselves, and going to change the cabinet handles and repaint the cabinet doors.Very nice.RegardsDaniel

Hi, KarenGood for you. Our first IP settles tomorrow, and we hope we can do just as well as you in our reno.RegardsDaniel

Hi, JackHave you looked at the council valuation that comes with the sec 32 for the property. In the council valuation, it should provide you with the land value, the Capital improved value and the Net Asset Value (NAV).Land Value – speaks for itselfCapital improved value – value of the the house / unit itselfNAV – Councils typical use this to…[Read more]

HiA quick update.We purchased a property using the DT and settlement is on Friday 3rd July.Next stop, final inspection and organising the reno.RegardsDaniel

Hi, ChokkoThe Trustee's name goes down on the loan for the home. If you are the trustee, then your name.If the Trustee is a company, then the company's name and signed by the director(s) of the company.The wife and I signed on our first IP in early May using a Family Trust with Corporate trustee.RegardsDaniel

Hi, FionaHere is what I think.You will have to factor in low capital and rental growth for the Melbourne market for the next few yrs on a worst-case scenario, and also considering if you and your partner can handle a 2% increase in interest rates over 2010 and 2011. While it looks affordable to hold onto a negatively geared property now with…[Read more]

Hi, TonyThanks on the update for Qld. In VIc, the Body Corp pays for Council rates, so I got it wrong by assuming it was similar in Qld.Yes. I do recall reading in API Mag about onsite property managers in large apt developments. Forgot about them as well.An also Landlord insurance. How could I forget…RegardsDaniel Lee

L.A Aussie wrote:

Terryw wrote:
You are assuming Spud had kids while on the pension.What should he do if he kids came first and the pension second? Adopt a few kids out ???And what is a solicitor loan? They don't exist!

True;  I did assume he had kids while being able-bodied and working.I still think having 5 kids in this day and age is…[Read more]