Completely agree. Unless the entire path ahead is clear, it may be prudent to do 2 year IO, thus having 28 years in the P&I calculations while still enjoying the IO term (it’s better than 25 years, not as good as 30 years). Definitely worth considering on case to case basis. The lending world is far more complex than it seems and a good broker…[Read more]

Thanks, Jerry.

I’m still at a loss on how the magazine suggests a “double up” (2 revenue streams) without needing a council approval.

Having one large family with a teenage/grandma retreat downstairs is one way to go, but it’s still one revenue stream, not two. Turning a blind eye to subletting(/airbnb) is also only one revenue stream (from the…[Read more]

This may be a better link:
http://oi68.tinypic.com/30t58iq.jpg

I know 😂 I just meant that he can’t do it since it’s all with the same lender (so he can’t hide a loan from them).

He got an email from the broker saying his borrowing power is $850k. Doubt the broker will provide a breakdown of how he got to this figure

Definitely an option.

Can’t leave off a loan as they are all with the same lender.

Leaving off a kid (or 2) won’t change the serviceability by that much, though.

Thanks for your efforts, all! Much appreciated. Will definitely update this post if/when any updates from my end.

Cheers!

Interesting… Are you happy to elaborate? Happy to discuss offline if that’s easier and post here summary for the benefit of all?

Totally agree that at the end of the day, we will be only guessing as until we see the other broker’s calculator (which we never will), we won’t know for sure.

Cheers!

That’s for sure! 😂

Only debts are the properties. Not much add-backs (depreciation and interest).

What else can it be? So odd…

That was my first thought as well! 😂

The broker, however, has been well over 10 years in the industry and the prospect is confident the broker wouldn’t make such a silly mistake.

There is a good chance, I guess, that he did some mistake somewhere and only when the borrower will be ready to buy is when he will discover that he can’t borrow that…[Read more]

All solid advice. Completely agree with everything said but I feel the need however to clarify my “a great part time job” comment.

As mentioned, there is a lot to learn and be on top of. I also agree that it’s not something you can probably do after your ‘day job’.

But if you are like me, being in a position of being time rich without the…[Read more]

I agree with Terry. Find yourself a mentor for the first 2 years. Just make sure they are compatible with the aggregator (some accept only mentors that know their CRM system, for example).

There is A LOT to learn but it could be a great part time job, no doubt.

Best wishes!
Ethan

Not a tax expert so I may be very wrong but I’m thinking…

I presume the revaluation was done by a valuer? If so, guess the ATO will accept it.

Yes, also thinking option b.

I would ask my accountant if I were you, Adam. S/he will be able to give a definite (and accountable) answer.

Happy selling! 😊

Hi Tom,

Is the $200k equity accessible by any chance?

Are you looking for 80% LVR or more?

The 430 p/w sounds great but most lenders take only 80% of it into consideration. Some will only accept a 6% yield on market value and then 80% of that (killing rental income).

I would suggest discussing your situation with a broker and see if and how…[Read more]

Thanks, guys.

Hopefully it will contribute positively to the IP value. The DA states that the cost to dev is over $5m so trust they will build something really nice 😎

Thanks, guys.

Hopefully it will contribute positively to the IP value. The DA states that the cost to dev is over $5m so trust they will built something really nice 😎

I totally get that.

Selling and waiting on the sidelines would feel to me (and I guess it feels like that to you) as a step back (presuming you’re in accumulation phase) and a bet. Who knows what the day will bring and when.

But being financially stuck in bargains (crisis) time is a horrible thought. I get that.

Did you explore all options to…[Read more]