You can certainly keep the loan as an interest only loan after 5 years. You will need to request your lender to keep it a interest only loan at the end of the 5 year term. It will be harder / impossible to get loan against a new business.

Keep posting your progress with this journey. Good Luck.

You need to consider 2 issues:
Servicability & Funds to Complete

Funds to Complete: To buy an IP worth $290k, you will need min. of approx. 13.5% of Purchase Price to cover costs. Potential to release equity (if available) plus the 20k you already have

Servicability: To improve your servicability, Make sure you are on Interest Only and use a…[Read more]

You need to think about your Medium term and Long term goals. You mentioned you get a higher income by going into business…
You need to consider you when you are proposing to buy and put a plan together so you make the transition and still achieving your goals.

You also need to be aware that these apartments can be leased out to students (this might vary with different developments) making the market that will potentially rent very small. Then you will have the same problem when you want to sell.

I have not personally invested in apartments in the past, but I have never heard good stories about people…[Read more]

Hi Isabel

I am looking signing up for 1BR + study apartment in Nth Caulifield, what do you think based on your experience.

I do not believe having 50% on Fixed and the other 50% on SVR with offset create any contamination. The things that can create contamination are making redraws, etc. I can see many are against pay down the Principal, so you can maximise your tax deductions down the track. Rather than just going for a 50%, 50% split, I would look at realistically…[Read more]

You are correct, However their are other Lenders that will consider the deal depending on the circumstances and the security.

@Scottyboy

You and your wife are the only people that can decide on the car.

When you are trying to decide between an Owner Occupied property or a Investment property the fundamental are the similar, but do have some differences. With an Investment property do not get sucked into just Higher rents. Do your homework expected capital growth, look…[Read more]

@mwhelehan

I have had a similar experience to your in Dealing with Paul Bieg. I purchased a property in Middlemount, I guess I have to take some of the responsibility. The issue I have with Paul is that he was unable to deliver on the commitments he made when I signed up.
It took nearly 2 years for the build to complete (I was promised much…[Read more]

@mwhelehan

I have had a similar experience to your in Dealing with Paul Bieg. I purchased a property in Middlemount, I guess I have to take some of the responsibility. The issue I have with Paul is that he was unable to deliver on the commitments he made when I signed up.
It took nearly 2 years for the build to complete (I was promised much…[Read more]

Has anyone come across a builders called axis all properties. 

Thanks petroipe and FMS for your comments, if anyone has further information, I am interested in learning about his credibility

Good advise bought with equity, if a broker does not have investment properties try and stay away from them. Yes mortgage broker can not provide you specific advise on structuring for asset protections or how to maximise Serviceability. But they can discuss what they have done to assist you in your journey.

In my view the economy will slowly start to recover. Businesses are starting to see some improved activity not sure if this is because of the approaching Christmas season are if Australia is now truly open for business again.

SC2007 hope you have found a good broker to talk about your situation and they were able to help you

Some lender would give you a little better rate, but when you are investor you don't want all your loans with one lender as this will limited your borrowing capacity. Some of things you should look out for are:
Should be a Mortgage Specialist
Should be a Member of the Mortgage and Finance Association of Australia (MFAA)
Should have links with a…[Read more]

Hi 
is there any builders in Gladstone, that you should not use

Jimmy you are talking about financial advice. It is always good so you are clearing on structuring you asset purchase. Also it is good idea to have a pest and building inspection completed.
Also always sign a contract to buy subject to finance, so you can be sure that you have the opportunity to walk away or renegotiate price if the bank valuation…[Read more]