Hi 5C1,

Discussing your case with the Ombudsman could yield interesting results and info. Would love to know how that went.

Moving forward, am also interested to see which insurers other members work with. Kept my silence until now as was waiting for others to suggest but none yet so here we go: we work with Allianz. They cover malicious damage.…[Read more]

Hey FXD,

Yes, having lots of money always helps 😂

As a side note, I always calculate gearing on 100% of the costs, regardless of the LVR, because my money could work somewhere else instead (for example, offset another mortgage).

The lender will look at your salary and at the rental of the existing and new properties. They will take into account…[Read more]

The calculation is a bit different. 80% of 450k = 360k. Since the OP mortgage is already higher, that’s not an option. Need something like 95% and take LMI into consideration.

Definitely agree that best speak with a professional. It’s free and useful 😊

Hey mate,

Thanks for sharing and sorry for your loss and pain. Definitely not cool.

Yeah, the ‘malicious acts’ clause is a real gotcha. Some policies today state in their summary if they include such acts. Those policies that don’t, usually don’t mention it (except somewhere along in page xx, as you found).

Definitely something for all of us to…[Read more]

To elaborate on what Richard said, although a property could be positively geared, the banks may treat it as negatively geared by assuming the actual interest rate is higher and/or adding a buffer (20% for example on top of your actual payments) and/or that you are paying P&I although you are only paying IO and/or take only 65-80% of the rent into…[Read more]

To elaborate on what Richard said, although a property could be positively geared, the banks may treat it as negatively geared by assuming the actual interest rate is higher and/or adding a buffer (20% for example on top of your actual payments) and/or that you are paying P&I although you are only paying IO and/or take only 65-80% of the rent into…[Read more]

Sure thing, alway happy to help.

I still learn a lot just by looking at properties and running the numbers. Most properties I don’t end up buying but I do learn something from most of them anyway :-)

Will be happy to read more on your progress as your journey progresses.

All the best,
Ethan

Totally agree with Jamie and…

I believe it’s prudent to get your solicitor to review the contract ASAP and ideally before you sign (too late for this one, I know, but moving forward).

Not a lawyer so can’t say for sure but I would presume that unless there is a clause that allows you to extend the cooling off, then you can’t. However, you…[Read more]

Hi Dan,

If your existing equity is only 10%, doubt you could use much of it, if it all. I personally wouldn’t bother unless the new valuation is much higher?

To buy an IP at the $280k mark, you would need at least 5% + the purchasing costs (which I usually calculate as 5%) = 10% = 28K.

Hope this helps? :-)

Cheers,
Ethan

Very good point, Pete. Thanks for sharing.

Hey mate,

My 2c are that after all the theories, hands-on experience is the next step.

You don’t have to buy in order to get some experience!

You can find potential properties that are for sale and that their value can be increased and start crunching the numbers on those specific properties. You can call tradies, surveyors, real estate agents,…[Read more]

Cheers, mate. Always happy to help 😊

Really can’t comment about the specifics of your deal. If after research you come to the conclusion that the best way forward (for you!) is to buy and rent, that’s great. If you will find that doing a cosmetic reno (to increase rent but mainly to refinance and get most/all/more than your deposit back), well…[Read more]

Completely agree with Benny. I would just add that buying properties for so cheap would usually mean that the end profit (after reno) would probably not be too high, in dollar amount.

That said, starting small could be perfect, then gradually building up to more expensive properties (the amount of effort is about the same for 60k property and…[Read more]

Completely agree with Benny. I would just add that buying properties for so cheap would usually mean that the end profit (after reno) would probably not be too high, in dollar amount.

That said, starting small could be perfect, then gradually building up to more expensive properties (the amount of effort is about the same for 60k property and…[Read more]

Interesting case. How much is the weekly rent?

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This user is spamming the forums and sending spam in PM. Can an admin please take steps against him?

Yeah, love these forums too 😍

As one investor to another, I always calculate the cashflow on 100% of the cost, not just the mortgage bit (because my money could have sat and offset another mortgage instead of serving as a deposit on this property, if that makes sense?).

Is this going to be your first IP?

Wishing us all a great long…[Read more]

Another (hopefully) useful tip is in case you plan to do a reno/other and then refinance: check the maximum “existing business” LMI of the lender of choice. It is very possible that that LMI will be lower than the “new business” LMI, making it probably prudent to initially use no more than the “existing business” LMI.

Yeah, lots of fun 😂

Another (hopefully) useful tip is in case you plan to do a reno/other and then refinance: check the maximum “existing business” LMI of the lender of choice. It is very possible that that LMI will be lower than the “new business” LMI, making it probably prudent to initially use no more than the “existing business” LMI.

Yeah, lots of fun 😂