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 different Lender for the new IP.

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• This reply was modified 10 years ago by  DaOne.
• This reply was modified 10 years ago by  Moderator.

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 that have invested in student accommodations.

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 what your excess cashflow will be over the fixed term and come up with % of loan to be on a fixed rate.

@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 for property that litte niches that can help you increase value or rent in first few years after you have purchased the property.

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.

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 reputable company with support and professional training

Should disclose fees and commissions transparently

Should be covered by Professional Indemnity Insurance

Should have access to a broad panel of Financial Institutions

Should have some specialist software to compare home loan products and calculators

Should be able to assess and electronically submit loan applications to Lenders

Should possess a detailed customer charter setting out how they work.

A good broker will be there to help you along the way. You do not select a broker based on rebate.

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 comes in under the contract price.

I guess it comes down to what you want. If you want the cheapest rate google it or Talk to a mortgage broker, it will be provided. As long as you know what you want. But remember the cheapest rate might not be the best solution for you.

What is your view on Places like Middlemount and Gladstone

Has anyone come across Paul Bieg from Big Property investments. He sells properties in Queensland and Western Australia in mining areas. I am interested in understanding if anyone has come across Paul and if they have invested through him