Hello BuDoKeN

I am not an accountant and suggest that you ask your accountant this question before you do anything else, specially about the deductibility of the interest you pay on this loan against your Australian income.

As a non expert I think there is no problem with transferring a large amount to Australia as you will be able, if necessary, to show that the source of the funds is a loan and not "black money". I also think that the interest will be tax deductible if it is used for an investment but as I said, go ask your accountant.

The first thought that came to my mind was that you may be saving interest but that you are exposing yourself to currency exchange rate differences which, over a period of years, may become much more substantial than the difference in interest rates. Of cause you can also win on the currency exchange differences if the Oz dollar strengthens against whichever currency you're  borrowing. Have you added this risk to your calculations?

Cheers
Elka
  

Just to stress what has been posted above, the reason why the vendor is selling and their needs are often the deciding factor as to what you will need to offer.

A few years ago I had just bought the front unit of 2 on a block at auction and had just settled when I heard from the back owner that they were also selling. Unfortunately they had just given it to the agent who had sold me the front unit and it was going to auction too. I was very keen to own the back unit as well, for obvious reasons, but was not keen to have to go to auction. I asked the owner if she would name a price she would take before auction.
 
She did. It was not unreasonable and I think it was very close to what I would have had to pay at auction assuming there was no over keen other buyer.. the unit is a bit bigger, better layout and with more land. 

The reason she was selling was that her husband had Alzheimer's and they were moving to Qld to be near their only daughter so she could help with his care. For this reason she wanted to go as quickly as possible but was definitely not looking forward to having people wandering through her place for inspections.

Armed with this info I offered $20K less, no conditions and settlement 30 days or a time to suite her as soon as my solicitor and bank were ready. I also pointed out that she would be saving all the advertising costs. She took it. For her, the certain, quick sale plus the fact that she would not have people traipsing through her house was worth the 20K. 

I was lucky as I had had access to the owner.  I think with the agent it would have been more difficult as they had me over a barrel …. if I wanted the unit.

Cheers
Elka   

Hello h2h73

Just to help with questions like yours adambc started a thread on just this topic. Here is a link to it.

https://www.propertyinvesting.com/forums/property-investing/help-needed/22508

happy reading
Elka

No. Australia has no tax on gifts of money, thank goodness.

If part of your deposit will be from a gift your lender will probably require a stat dec  signed by whoever made you the gift declaring the money as a gift.

Cheers
Elka

Unless you're planning to manage the property yourself you forgot agents letting fee and commission which is about 3% and 7 % in Melbourne. I know it differs in different places. 

Cheers
Elka

Looking really great. The last owners will be kicking themselves for selling.

Would you mind telling me what lazer light sheets are as opposed to what was on the roof of the deck before? Sorry for the stupid question but I am overseas and can't pop down to Bunnings to ask them.

What was the cost of all that furniture hire? I must say whoever furnished it did a good job and I think it will help in the sale.

After all that  hard work now I wish you just a little luck with 2 or more motivated buyers.

Cheers  
Elka

It's all looking really great.

Did you remove the railing on the varenda at the front door? I can't see it in the new photos of the front door but can't remember a post were you said that you would do that.

Best wishes

Hello Jenny

May I ask what you are doing with your income?. Are you using it to pay down the home loan on your PPOR?
If so, that's good as this is non deductible debt and you can draw the money out later via the LOC for further investing when you want it. 

If your home is fully paid off then I don't see any reason not to use your excess income to reduce the LOC.

It's just that you say that you have had no debt for 30+ years so I though that maybe you were just saving your income in a savings account which is not the best place for it.  

Just my thoughts 
Elka 

CPI is consumer price index.

Tysonboss1 was saying that he annually increases the rent by the CPI plus  1.5%.

Here is a link to look at what the CPI index is made up of.

http://www.abs.gov.au/ausstats/[email protected]/mf/6401.0/ 

Cheers
Elka