Forum Replies Created
Thanks Terry I obviously have no idea of what I am talking about and have totally misunderstood the information I was given. I guess what I wanted to find out is are there any benefits to purchasing with a trust when I start out or would it be something I look into later down the track?
Hi Terry thanks for your reply. We look as though we are going to take a joint personal loan in order to be able to claim any tax benefits that will apply to this investment property. What I wanted to know is, I was told last year at a property seminar that if you set up a trust and then use that trust as the director of a seperate trust which holds any equity from your personal properties you can use that trust as leverage to obtain a greater lending capacity when applying for future loans if you are a single applicant. Then also you can purchase investment properties under the secondary trust and then say for example have your partner rent the property under her name and use the property as your residence as long as the funds are paid into the secondary trust. Is this possible or have I missed something which I haven’t understood?
Jamie, thank you once again for your assistance. I checked out their website and it looks exactly like the type of firm I’m after. I also can see that your a mortgage broker… I was wondering what the process would be in order for me and my partner to have a consultation with you?
Thanks Jamie, is house of wealth a group? Well obviously they must be but is there someone specifically to ask for? Also how do I do a search? I’m guessing this topic has been raised in the past but I couldn’t seem to find an earlier post.
Thanks everyone, very helpful information. If anyone else has any other suggestions please feel free to message me or add to the post.
The spread sheets you use for your renovation budgeting… Do you happen to have a template? Be good to have a copy or something to go off. I’m just wondering if you go out first to get prices on carpets and blinds and paint etc. before you purchase the property or if you have a way of knowing roughly how much it would cost to do and then look for a suitable property to match your budgeting needs? I’ve got two properties in mind that I could renovate but I want to take a loan out to have enough money to cover the renovating costs. I dont want to fall short but I also dont want to borrow to much if its not needed. Any suggestions?
Thanks for the replies. Good to know you can get paint carpet and blinds for a 3 bedroom under $2000. Was that DIY as I couldn’t imagine you could pay someone to do it all for that price? Also before you purchased your property do you get quotes from builders or evaluators? If not how do you estimate prices for the changes you want to make in order to accurately budget your renovation expenses?
Cheers Terry, I know how frustrating it can be in commission based jobs as I have worked in sales for 10 years but I don't plan on wasting anyones time let alone my own. I just want to make an informed decision from speaking to a few people before I decide who to go ahead with. I'm sure by the sounds of things it will end up being Jamie but I don't like to blindly follow anyones advice on anything without getting a feel for things myself. I appreciate you getting back to me so quickly to clear things up and I appreciate where you stand on this matter. I just want us to all be on the same page here, which is just giving advice where possible. Thanks
Thanks everyone for backing up Jamie. Terry I really didn't need to be told not to waste his time…. I think as a potential investor I am able to ask questions and speak to a few brokers before deciding on who to go through, how else would I learn anything? I worked as a travel consultant for over 3 years and do you think I expected everyone to book through me just because they made an enquiry? I really appreciate the feed back people but i don't appreciate being told what to do when I'm only asking for advice. Lets keep this post friendly and keep up the good vibes.
Excellent, I didn't realize Jamie was the one you were talking about from earlier in the post but thanks for the referral. I will definitely talk to Jamie before I go ahead with somone else.
Why would recommend Jamie? Just wondering if it would be worth speaking to someone long distance or trying to go locally
Cheers Jamie and Sundance. Any more information regarding these brokers and why you would suggest them?
Sorry forgot to post where I'm from…. I would preferably like someone close to Lorne in Victoria but I would also be happy with anyone from Melbourne as I regularly spend a lot of time between both places
Hey new guy thanks for your input. It makes my decision seem a lot clearer now that I take that into account. I appreciate your help and I might start up a new thread to help me with the intil borrowing process
Cheers Michael, might seem like basic info but for me its really valuable. So what do you suggest in this scenario? Would you save more money and try to reach the 20% mark and look for a similar deal later down the track. Because I also didn't take into account the loan being approved because 95% of the money is being loaned.
Thanks Michael, your very helpful. I was wondering can you give me an honest opinion on this particular scenario. Say if renovations come to roughly $10k to increase the market value and I leave a bit of extra money to buffer so all together it may cost me $25K including stamp duty and LMI etc. Do you think it would be better to take the loan out on interest only and pay into an offset account and use an interest free credit card or do you think just stick with repayments on a principal and interest loan?
do you think it would be worth paying a professional to give me there exact opinion on cost to renovate, or is there another way to evaluate the property to find out how much needs to be spent?
Well I was thinking after a year of doing some small renovations to bring the place up closer to the median price in that particular area which is around $220K and then getting it re-evaluated to loan off the equity and invest in a more expensive property. Would you suggest this to still be a bad idea?
Interesting… Thanks Jamie and thank you Michael for your input in backing up Jamie's comment. What if I found a 3 bedroom property for $150K and it was currently being rented out at $200 per week? Would you say that woud still be a smart investment even with a $10k deposit?
Hi Jamie,
Thanks for the info. would you say that I then need roughly $40K in order to start investing on to avoid the LMI in most cases if I was to aim at a property between $150K-$200K?
If not $10K is still over 5% of $150K plus the mortgage insurance costs. Would you advise to invest in this way or to save more money first ?
