Hi all,

Thanks for all the great replies.

The vendor previously offered a small discount to compensate for the ‘subject to tenancies’ (just like Benny suggested) but I was concerned about his reasoning for refusing to do “vacant possession”.

A bit more gentle research this week suggested that the issue the vendor had was indeed regarding the…[Read more]

Hi FXD,

Why not refinance with lender 1 and get the extra equity, then use that (and your other cash) towards the purchase of the new property through lender 2?

You can use of course lender 1 for both properties but that might not be to your advantage.

Hope this helps?

Cheers,
Ethan

Hi San,

Without knowing more about your specific situation, I would probably say refinance. A split might be prudent to keep the purchase of the IP debt seperate from the main PPOR debt.

Hope this helps?

Cheers,
Ethan

Hi San,

Without knowing more about your specific situation, I would probably say refinance. A split might be prudent to keep the purchase of the ip debt seperate from the main PPOR debt.

Hope this helps?

Cheers,
Ethan

Hi San,

Without knowing more about your specific situation, I would probably say refinance. A split might be prudent to keep the purchase of the ip debt seperate from the main PPOR debt.

Hope this helps?

Cheers,
Ethan

Hi San,

Without knowing more about your specific situation, I would probably say top up or refinance. A split might also be prudent to keep the purchase of the ip debt seperate from the main PPOR debt.

Hope this helps?

Cheers,
Ethan

Am also keen to know why OP see this type of mortgage as non applicable

Am also keen to know why OP see this mortgage as non applicable

Thanks, buddy! Will do!

Hi,

Did you end up signing up to one of the courses? If so, what’s your take on it?

Hi Amanda,

I’ve just congratulated a 30 y/o on looking at property investing. A 25 y/o looking at it is even more impressive. Respect! :-)

Going only on what you wrote, it seems very likely that you should be able to buy the $260K IP with 80% finance without having your parents guarantee the loan but as Richard said, a more in-depth analysis…[Read more]

Hi Rob,

First of all, good on ya for thinking long term and seeing the value in property investing. Wish I was focused on it when I was your age 😀

You might find it interesting to know that even if your property is positively geared, the lenders may still see it as negatively geared! Why? Because they stress test the borrower. Rent is usually…[Read more]

Congrats!!

Not sure if it’s worth it for $10-15k but it might be prudent to do another valuation 3-4 months after settlement. You could bring comparable sales and attend the valuation, talk with the valuer, show her/him your comparables, tell them what number you’re hoping for (after all, we are all people and valuations are not set in stone).…[Read more]

May I ask how are you planning to use trusts to expend your borrowing power?

Good thinking wanting to minimise the PPOR debt, I reckon. It’s not tax deductible so overall it costs you more than IP debt.

Why isn’t the equity in the IPs accebible? I would probably refinance at least one of the IPs, set them up with a redraw or offset facilities and gain access to the equity there. Simple 😊

Hope this helps?

Solid queries by Terry.

I completely understand where the OP is coming from. When I first started investing, I also wanted to protect myself by establishing trusts. Luckily I spoke with with a few pros and eventually decided not to start my property investing journey via trusts mainly due to land tax costs, complicating serviceability, negative…[Read more]

Hi Colin,

Can I put my investor hat on and ask for that ebook? If an offer I’ve put in last week gets accepted, I’ll be on my way to my first dev project. Fingers crossed! 😊

Cheers,
Ethan

Hi BRWT,

Colin is right. Nobody I reckon can give you an answer to the “what is the best path to take” without knowing more about your goals and also your financials (a few examples would include: would negative gearing hurt your next purchase? Do you even intend to make more purchases? Are you after cashflow?).

A few things that may be worth…[Read more]