Richard Taylor wrote:

Or do the deal yourself with a Nodoc loan (No evidence of income required) and receive 100% of the profit.

Who is doing those @qlds007 ?

Is it via private funding?

• This reply was modified 7 years, 2 months ago by  Colin Rice.
• This reply was modified 7 years, 2 months ago by  Colin Rice.

Depends on who you listen to?

Some bank analysts are projecting 2 x interest rate rises in the next 12 months yet others are saying it will stay flat. I am of the later school of thought.

RBA will likely sit on their hands until they go numb or number and will have a “see what happens” approach before making any moves.

With banks no longer following the RBAs lead anything is possible.

Ask a local PM/Real Estate Agent to do an appraisal for you, both for sale and rent.

I would highly recommend you engage a PM to manage the property for you.

Check with your finance guy that you can service the debts involved with your current and future plans.

All the best.

Find another PM to work with and consider not renewing the lease for the current tenants.

Property investing generally has 3 “business partners” in the equation;

1. The tenant

2. The tax man

3. Financier

In your case its #1 and they dont seem like an appropriate business partner so have them replaced with one that is.

Nice, detailed write up Corey :)

Renting as opposed to purchasing a PPOR can increase your borrowing capacity depending on your individual circumstances taking into account your short, medium and longer term goals.

Rent is taking at actual repayment in a banks serviceability calculator where as PPOR debt will be calculated at between 7-8% depending on the lender.

To see what is better it would be advisable to seek the assistance of an investment property savvy mortgage broker before taking the plunge.

Corey Batt wrote:

(you mention 3.5% for an investment loan, obviously an example but you’ll be stretched to get any reasonable product near that rate and most close will mean you’re making sacrifices which will limit your ability to borrow again in the future etc)

Realistically it will be circa 4.5% on an IP depending on the lender and loan structure.

Only real way to tell pre sub division is to look for comparable sales of similar properties and attempt to guesstimate the end value and then work out the LVR.

This is not an exact science and is where things can go realy well if you get it right and realy bad if you get wrong and everything in between.

Knowing the local market is what will dictate the success of your project and timing a market upswing is the sweet spot for development, if not you may have to hold for an extended period which isn’t necessarily a bad thing if holding costs are minimal or better still non existent or even better cash flow positive :)

• This reply was modified 8 years, 1 month ago by  Colin Rice.

Where are the blocks located?

Hey @rockypinball I would look to exhaust borrowing in personal names / trusts and then once you hit the borrowing ceiling look to continue investing with your SMSF.

This is not advice as I dont know your whole situation.

As a side note Aussie banks wont take foreign property as security as there is no way (or at best long and protracted) to get a hold of the security to recover funds in the worse case scenario.