YI,

I'm with NAB Business Banking, have been since March this year.

I'm overall happy with the bank.  They've allowed me to slip in under the family and create a new personal account, and have allowed me to joing NAB Health Business Banking without being in the industry.  Big plus from my point of view, even if it cost's me $400 a year.

I've found that having a personal bank manager and associate is beneficial, it's great being able to just phone someone direct who know's your situation and can offer help/advice.

NAB's been pretty good with the interest rate rises of late, I'm currently paying 5.89% on my first home loan, equalling a happy customer who's not looking to move.

My only negitive comment is in regards to how fast things happen, or don't happen.  I find that the only way to get things done is to continually hound them for it (may just be my bank manager tho).  I know I'm one of the 'small fish' in their books right now but the plan i've put infront of them clearly demonstrates the win-win we'll both encounter.

I'm aware i've got to 'do my time' with them before things get a little easier – after all, I only entered the property market this year.

Hope this helps.

Cheers,

Darren

Thanks YI,

Yes, I'm on the Choice Package through NAB Health Business Banking…

The Loan has only been in place since the the end of March this year…do you know if this will go against me, or am I covered under the Choice Package if I change from PI& to IO ??

Terry – I'm borrowing another $50k from the bank next week (ontop of my current $200k loan):
 
$35k for the remaining sub-division work
$15k to fix up the external of my existing home (Paint, Repairs and Front Verandah).  This will help with street appeal come time to sell back block/house.

I spoke with my Bank Managers Associate today to discussed changing my current P&I over to IO – she stated it shouldnt be a problem…my plan is also to get the additional $50k as IO with a linked offset account (as we've discussed in this post)…

With this in mind I have 2 questions:

1 – Are there any Tax / Deduction implications with having 2 separate IO accounts that I should be aware of ??  (all I can see are the positives…)
2 – What's the banks general position on IO loans, is there something people can do that commonly helps persuade the bank to allow IO loans ?? 

I've convinced the Associate the my current PPOR is an IP (which it is) as I've heard IO Loans are generally only for IP purchases…

Your thoughts ??

Cheers,

Darren

Thanks Terry – I'm meeting with the Bank this week, will see what they say…

I dont know enough about the Tax Benefits/Implications/Deductions associated with Property Investing to fully understand all of the intricacies that go with the information above, however, in theory it does make sense and I can follow where you're going with it – I do need a good Accountant tho !!

Given I'm just starting out, I see cash in the bank as my best asset to re-invest into new PI's – can I instruct my bank (NAB) to change my current P&I home loan over to an IO loan ??  (it's currently the only loan I have with the bank – but I'm soon to be getting another $50k to complete my sub-division).

If I can achieve this, it'll only dump a small amount each week back into my offset, but right now, every little bit helps !!

Can you merge the 'Options' deal into a Reno of the place your looking to buy, or does the property have to stay in the same condition while the Option is in place ??

Eg:
Both parties agree to sale price with a Put and Call Option written into the contract, buyer also requests early access to the property to complete some basic reno's.  Reno's get completed before the property gets put back on the market, all done before the Option needs to be actioned.

So if you purchase right, spend wisely on adding more perceived value than actual value, and sell within the Option timeframe, this sounds like a useful way to make quick captical gains…

…what am I missing here, what are the pitfalls of this strategy ??

Sorry to hijack your post Marcus…I'm a newbie who's needs some info…

What is a QS report ??

What is Cross Collaterisation and why should it be avoided ??

Cheers,

Darren

Hi Z,

I'd also side with the comments made by other forum members.

You mentioned that it's cheaper than anything else in the area that is similar – think about why…

If we just consider PPORs for a moment, nobody want's to buy someone else's problem (this applies whether its a car, business or house)…the exception here is if you're fixing a problem to provide a solution – eg: Reno's…

Additionally, how long has it been on the market, have other potential buyers enquired in detail and backed away due to what was found ??

While it is true that termites can be completely eradicated, and the damage rebuilt, you're still buying a product that has at one time or another had faults and serious concerns…can you live with this ??

At the end of the day, the decision is yours to make – we can only provide our opinion towards your situation, be it positive or negative…I hope it's helped  

All the best with your future purchase, where ever it may be.

Cheers,

Darren

Hi Kas123,

I'm sure there's plenty of people who would be interested, and it may help if you could provide some more information (some specific's):

– Location ?? (10km's of CBD = north, south, east, west…does it matter ??)
– Specific Requirements (Bedrooms/Bathrooms/Car Parks/etc) ??
– If it's a House, what do you want ??
– If it's a Unit, what do you want ??
– What repayments can you comfortably make ??
– What is your credit rating like, is this why you need Vendor Financing ??

At the end of the day you'll be living there, it's going to be your home – so what are you interested in ??

I don't have any experience with Vendor Financing, but i'm certainly interested in future possibilities.

Cheers,

Darren

Hi Alex,

I'm only new to sub-dividing so there's alot that I still have to learn myself.  Im interesting in knowing what Council allows you to sub-divide a 650sqm block – where are you looking to buy ??

From the research i've been doing, typically the block needs to be around 800sqm before it can be sub-divided, you also need to make sure there's enough recreational space on each block (driveways and carports don't count).  Fitting another house on a 325sqm or less block, while meeting all of the councils other guidelines should be a fun challenge.

Cheers,

Darren