Thanks Jamie… I am glad to see you say this… as this is what we were thinking, but being new at this we were wandering if we were thinking wrong and doing ourselves no favours. So thank you.

I am still happy to see what others have to say… a good way of educating ourselves.

Anyone else have any advice/opinions?

Thanks everyone… your posts are appreciated and have been a great help in allowing to begin to understand the whole develop/sub-divide process. If we have any further questions we will be sure to ask.

Thanks Michael… what is involved with a construction loan… how is this seen to be different from the banks point of view to the ‘original’ mortgage/loan for the property? SSorry if this seems like a very basic question, but this is all new to us and we are keen to learn as much as possible so as to make an informed/researched decision.

Shape wrote:
How many are you building?
What are you building?
Zoning?
How much?
What LVR?

Good questions Michael … not sure I can answer them.
We are justing about the possibility of buying an existing property (eg 1 house on a good sized piece of land) and building 2 or 3 houses/villas… we see this being done quite a bit in Adelaide. Or…[Read more]

Hi DavidWe very recently used http://www.propertyreturns.com.au in Adelaide and we are very happy with their prices and their service. Hope this helps!

Thanks again quickchick… and I completely agree with your sentiments.

I appreciate the opinions and insight so far from forum members… are there any others that wish to comment and provide insight about this post?

Anyone?

Thanks Catalyst

From all the reading and researching and talking with people in the IP market with investments in the areas we are looking at, and with discussions with wealth advisers, and with discussions with buyers agents… we have a good understanding of the areas we venturing into. We are very aware of rentals and projected CG in the areas…[Read more]

Thanks quickchick… we will certainly be discussing depreciation v captial gains with our accountant (have an appointment with him in a few weeks). Thanks for the tip.Aso, I have seen 'The real Deal' mentioned in our research so I think I will definitely get a copy and read. Thanks again.

Correction – my post @ 1.37 today. Point 5 – We have paid a total of $1500 for building/pest and conveyancing (not $100… typo with the 5 missing) 

I appreciate the replies… I have not read Steve McKnights books, but I have read a lot of his material available on the web in various forms (websites, extracts, forums). Maybe I/we should read one of his books though… We are hoping, and our understanding, as it looks so far…IP1 – already rented at $295 pw, repayments $422 pw – we have to…[Read more]

Thanks quickchick… I think I must have just posted my lost comment as you were writing yours… I appreciate that we have to prove up front our funds immediately available for IP1, for the bank to be happy we can cover the costs and not be seen as a risk and allow all boxes to bew ticked to ensure we get formal approval. And we certainly have…[Read more]

To summarise:1. We have found IP1 and have conditional approval from the bank, waiting for the property to be assessed and approved by mortgage insurer (fingers crossed)2. We have found IP2 and have placed a holding deposit, but think we need to wait for IP1 to be 'a done deal' before we submit application for IP2. This might be pushing it but we…[Read more]

RichardThanks for your input… but if you read the entire thread and what i have siad, I have already answered what you are asking. There is no PPOR.We are not putting the $50k (after tax) into 1 property.We have a letter as proof from employer (employment retention benefit bonus) to say this is guaranteed. Thanks for suggestion this course of…[Read more]

Hi JamieWhen we started the process for IP1 we had $35k in the bank (2 weeks ago) we have since saved another $5k.We have a savings history that proves we will continue to save at a rate of the same until settlement… to cover the $16k needed for deposit of 5% and more than enough to cover the stamp duty and all associated costs. Our broker…[Read more]

Thanks Jamie.

I should have been clearer and offered a bit more background… when we met our broker for the first time )a Thursday evening) we were applying for pre-approval of $780k. Our broker said everything looked great, start looking for a property or 2 or 3 if you wish.

My husband and I got excited that night and that weekend and we…[Read more]

Thanks Jamie.

So are you saying we should avoid pre-approval and just straight up submit a loan application for each property?

(Apologies for the lack of knowledge in this area… still learning)

I gather borrowing 95% is not looked upon in a positive light by banks… when asking to borrow so much (eg 95% for each of 3 IPs)?
(Even though on…[Read more]

Oh additionally… we are expecting a bonus through my husbands salary to be made available to us come 7 July, of approx $50k or a little more. So although we don’t have this money right now we are hoping the bank might acknowledge this (for example if we can present them with something in writing from his employer as proof of the agreed bonus…[Read more]

I was last in Newcastle about 3 months ago…

Hope this helps!

I grew up in Newcastle and frequently visit family from time to time… I lived/rented in all 3 suburbs, have home owner family members in Shortland – they have lovely homes/houses and in my opinion… Shortland is much better than Mayfield. Although, about 30 minutes drive from the centre of town/the foreshore. Mayfield is better than Islington…[Read more]