Hi Doug,

All costs are payable at time of settlement. This is something your lawyer/conveyancer will advise you on.

If you organise inspections as part of your due diligence these will be payable by you prior to settlement and in accordance with your contractors conditions of sale.

Ball park allow 5%

Exact stamp duty can be obtained from the office of state revenue (or equivalent) for the state the property you are buying in.

Spill should have extended to the whole of parliament and let the people decide.

The farcical games this lot are playing are amazing – they are there to govern for the people and not their own egos.

Seriously – none of those options looks particularly attractive.

In replying below I have assumed you have cash for all options.

First one – nets $8.5K and little or no growth. Studios generally only suit cash buyers and by extension the pool of potential buyers is limited.

Second one – nets $10.5K on a $420K investment with questionnable…[Read more]

Hi Paul,

Fixed rates are pretty low right now and I don't see a lot of value in trying to time the trough to perfection.

If the numbers work for you at the moment then lock in. At least you'll have certainty for the duration of your 'fix'

Having said that be mindful you do not fix for too long as break costs can be expensive. From my…[Read more]

Agree with Freckle.

Single house/property not worth the expense of a legal challenge.

I would also add some of the modern building materials look outstanding.

Just need to rethink your thinking.

HI Kristy,

I might be well off the track but reading your more recent comments would suggest, to me, that you need to make some serious changes to your money habits.

1. FHOG used to pay out personal loan,
2. Thinking of a new personal loan for a car.
3. Needing Dad to go guarantor for approximately 20% of property purchase price.

I reckon you…[Read more]

Hi Tom,

If you are chasing private funding I would start by talking to your broker. They often have private funding sources available to them.

A key component of the philosophy of an interest only loan is to hold onto an investment property that should increase in value over time.

Using an interest only loan to buy furniture/carpet etc means your debt level will be greater than the value of the underlying 'asset'

Think carefully about this one and consider the bigger picture. 

Hi Fingers Crossed,

Someone ahead of me has already suggested a more thorough examination of the situation.

Have heard of builders rubble, dried concrete being found in pipework after the builder has left the scene. Could be circumstances combined in a mini-perfect storm scenario and resulted in a blockage.

Hi Kristy,

A few points that maybe of assistance.

1. Start your PAYG form now. They take a couple of hours to fill in and the effect of them takes about 6 weeks to come through. This means you'll have two months with a lower rate of tax. While this may not be the perfect solution it will release some of the pressure.
2. I also am confused by…[Read more]

Agree with Jamie – assume the funds are borrowed from line of credit or similar.

kochy1983 wrote:
My boyfriend is in a fair bit of a better situation than myself with his place but being a uni student does make it tight also. He seems to be against interest only loans. 

I see you are in Perth but you wouldn't know any financial advisors in adelaide would you? Do you think it would help us to see one?

Hi Kristy,

Oops…[Read more]

Cheers for that – I am am just filing information away just in case it is ever needed.

Hi Kristy,

Apologies for the tardy come back to you – been out doing some more bushfire training with another group of volunteers.

Simply converting both of your loans to interest only will make a significant adjustment to your situation. Now before you run off and get these wheels moving a word of caution – ANZ bank (there may be others) may…[Read more]

Hi Sean,

Not Jamie and not a broker but it would work like this.

Establish a line of credit facility secured by your PPOR. The size of the line of credit should be large enough to cover your expected deposit and purchasing costs. This will roughly be 25% of the purchase price of the property.

At the same time your broker should be setting up…[Read more]

H Kristy,

Haven't heard that one before – are you speaking with a bank directly or through a broker?

What rents are you getting?
How much are you paying for rates, insurance etc?

Are you likely to return to live in either place in the future or do you have plans for elsewhere?

If you provide this information I'll be able to give you a more…[Read more]

Hi Kochy,

Are your loans on Interest Only – or can they be converted to such? As an interim measure this will ease the squeeze a fair bit for you.

Hi LC,

Cranbourne was heavily marketed to investors. I am sure you could do better.

Hi Tuo,

There is no right or wrong answer.

One of the reasons you'll get conflicting points of view is that many people do not understand there is not a one size fits all model and that you need a combination of growth and cashflow to successfully invest in property.  One without the other and, sooner or later, you will reach an impasse.

And…[Read more]