Hi Jewel,

Look I am the first to admit I am not a renovater so take what I say with a grain of salt.

I suggest you slow down a little. While some people are very successful at renovations there are others who fall over through poor research, over capitalising their reno and not getting the return they thought, bad buying and so on.

By your own…[Read more]

Hi Todd,

When the report is written up it will apportion the first years deductions over the balance of the year remaining, then the next 39 years (assuming the property is bought brand new) and the final year relfects the balance of days remaining.

In effect assume  the property settles on June 1 you'll have i month depreciation claims in year…[Read more]

HI YU,

When calculating your capacity to borrow money the bank looks at you from two aspects. What your security level is and whether or not you can service the loan.

LOCs have a number of advantages but there is also a disadvantage to them.

When looking at your serviceability the bank will consider your LOC fully drawn and if your annual…[Read more]

Saw something similar on the Gold Coast a few years ago. Mind you not to the same extent.

Old set of units on the Broadwater with brand new units surround in the shape of the letter U . Ended up with carpark on one side, pool on the other and the units across the front.

HI YU,

Not a broker so i'll leave the DSR question to those more qualified than I.

LVR – LOCs are included in your overall LVR. So in your example your LVR is 80% secured by PPOR. Your LVR secured by IP is also 80%. Gives you an overall LVT of 80%. I find it best to work LVR based on your security position – this lets you know if you have any…[Read more]

What results are you trying to achieve with your purchase?

My understanding is that apartments in Melbourne were getting close to over-supply. Not sure if the market has changed that much in more recent months but you would need to do further research on this aspect of your decision. 

Certainly the Darwin market is reported to be at an…[Read more]

A few points JayT.

I don't know PREI – so my comments are general in nature rather than aimed at PREI.

1. If you are going to use a mentoring program make sure it fits your needs rather you being moulded to fit their needs. There is a huge difference between true mentoring and pseudo-mentoring.
2. I noticed you said you were, "quite impressed" -…[Read more]

santh wrote:
Hi, I am looking at the new 1×1 apartments up in South Hedland that are on the market for $599,000. They are advertised as being able to rent for $1300 a month which is a yield of 11.1%

I am obviously a little cautious and want to know why these deals aren't being snapped up by investors when it sounds like an easy way to get a CF+…[Read more]

Being dedicated student accommodation will, probably mean your normal lending rules go out the window. You'll probably be looking at lower LVRs as minimum.

Geez – if I was the vendor of that property I would not be too impressed to hear the agent has not returned your call.

Some agents are very good and earn every cent they get paid. They work extremely hard for their vendors.

Then there are agents who can only sell properties that sell themselves.

I can see rents going up with the increased costs.

I wonder how widespread the 'lack of security' perception by tenants really is. I cannot recall any of my tenants specifically requesting extra security. 

Sounds like some knee jerk reactions going on at all levels of government and not just confined to a state level either. I like it how noisy…[Read more]

Hi Bob,

Not sure what sums of money you are looking at but you may wish to consider the Anti-Money Laundering and Counter-Terrorism Financing Act (2006).

This Act has a number of 'reporting' requirements that may impact on what you are planning to do.

I think it was Malcolm Fraser who suggested placing your hard earned under a mattress might be…[Read more]

Have you had discussions regarding finance?

Recommend you get a really good broker on board asap to run your numbers, make recommendations and to liaise with banks on your behalf.

Part of your DD period should include address the question of finance.

Gee thanks Terry – I'll just go and speak to the missus right now.

I need to get in before she tries to charge me some rent.

Not sure what sort of returns you are after or what risk profile you have.

For mine – in an offset account linked to your home loan – the same as earning approx 6% tax free.

Hi Dan,

Commercial property is a different world altogether.

I recommend you learn to walk before you run and focus on one property only at this stage (whether that is an IP or PPOR is your call) and then when the dust has settled on that purchase look at number 2.

I have seen people with grand plans to take a really big step with their first…[Read more]

Based on information provided it sounds as if you are planning to operate outside of the tax act. Big penalties may apply.

Hi Radley,

My broker and accountant are both in excess of 400km from me. 

With modern technology there is often little need to meet your professional face to face.

You may find the best broker and accountant for you can serve you from afar.

There will be additional costs beyond a standard IP that you will need to consider. Might also be the case the bank will not consider this as a standard residential loan so you may be looking at lower LVRs and higher interest rates.

I suspect July statement comment refers to figures from last financial year – not a big issue but worth asking…[Read more]

Hi Shangrila,

While some of their comments may frustrate you – don't totally ignore what some of them are saying. This is certainly the case if the person 'giving advice' has built a sizeable portfolio over a number of years. While their underlying strategy may differ from what you are doing by listening carefully you will still be able to glean…[Read more]