A few of the smaller lenders are moving to fill these gaps with the odd lender increasing LVR on investment loans. However, agreed that overall the changes are significant for certain investors with specific gearing requirements.

As always I try to keep things simple in my own head.

Start with:

What is the idea behind buying the property. Will it grow in value and why. What has your personal reading a research told you.

Then:

Is money coming in each month greater than money going out pre tax.

If not – what is happening after tax.

If still cash flow negative how long…[Read more]

Redwood – suppose I am not really arguing or questioning the validity of gearing inside the fund. It’s just that I get that cringing feeling when you go to a bbq and meet someone and they start talking about their smsf and the conversation goes something like, “We’ve got one of the smsf things but I have no idea how it works, hubby bought some…[Read more]

BM 17 – your question seems really just double checking your gut instinct – which is correct. Yes you can keep your loans separate at the one lender. No problem. However, with the structure you have now I am guessing that the reason you want to move is price or rate. Serviceability (or the way banks calculate what you can afford) will be slightly…[Read more]

Yson – Terryw on this forum has offices in CBD.

No problem guys. Good luck.

Fundamentally locking in rates isn’t about gambling on the variable vs. fixed pricing – but the long term certainty in your interest costs

Agree Corey. It’s about looking at your portfolio and running some “what if” and “how much” scenarios.

Hi Michael – try Kris link here http://www.krispedersen.co.nz/ .

Hi M&S,

When it comes to red flags the advice I would give if asked is trust your gut. After that what I would do if I was new to an area and trying to work out if a “problem property” was a deal is do a bit of digging.

The first thing I would to is try and find a comparable property that was in tip top shape or the condition your would bring…[Read more]

On this I would definitely be heading to a local architect or planner who knows your local rules inside and out. Pay them for their time. The rules will be very different depending on location.

In the end what needs to be considered is product.

When I say that I mean what will you end up with and what is the demand for it in the market. Both…[Read more]

I have read some articles and I think that Terry is right. Probably I should change my accountant :( not very happy that she gave me wrong information..

If anyone knows it will be Terryw . Give him a call.

The issue I find most unreasonable is that we are all locked in (to an extent) to a system where the goal posts keep moving. We are asked to make investment decisions now based on rules that will most certainly not exist in the future. Outside super when rules change you can pivot. Inside not so much.

Liana . with your budget I would perhaps consider the central coast NSW. You are 40 to 90 mins drive to Sydney. The market is very diverse so you will have to do a lot of home work on locations. Some areas have peaked while others are in the mid part of an upswing. There is a lot of potential. There is still a tone of property available where you…[Read more]

I have another 60k savings also, so I’m looking to either use that or the equity that I hope I have but still try to maintain a cash buffer.

Hi Knox – sometimes a finance application is more likely to progress when LMI is not involved or the LVR is less than or equal to 80%. You have mentioned serviceability so that may have been a factor t…[Read more]

Cash flow is oxygen when building a property portfolio particularly if you want to delink your “JOB” from your ability to invest.