Remember that any interest gain is taxable if it is outside and offset account. If in an offset account it is deamed as savings therefore your “return” is whatever the variable rate is. For example 4.17% variable isa 4.17% tax free savings so effectively a return in reverse :)

• This reply was modified 8 years, 3 months ago by  Colin Rice.

Whey protein powder and good clean food as much as possible.

Im thinking about Adelaide as well. Much in the way of subdivisions DT & Corey?

Finance would likely be limited to 80% LVR or less due to the size of the apartments and depending on the m2 may be limited to a few lenders or possibly none so cash buyers only?

• This reply was modified 8 years, 3 months ago by  Colin Rice.

Nope but did a google search and got this; http://www.stonerealestate.com.au/

Tell your mate to go along as you always pick up a nugget or two from seminars, even if it is what not to do.

Before committing to anything would need to have a chat to an experienced and successful property investor about the suggested strategy Stone are spruiking.

Hint: there are a few on here :)

• This reply was modified 8 years, 3 months ago by  Colin Rice.

Could be done but as mentioned things can go wrong.

Extra hits on your file and perhaps questions (possibly not asked to you) may arise causing the lender to decline your application.

Also need to weigh up the time and effort expended v interest saved!

Could spend your time other than managing the credit cards working overtime at your job for example therefore potentially increasing serviceability.

• This reply was modified 8 years, 3 months ago by  Colin Rice.

Depends on your strategy? Is it cash flow or capital growth you are chasing?

Generally land increases in value and building decrease in value. In saying that the older style apartments usually have a greater land component than newer similar properties.

Rule of thumb for land / building ratio is 70 / 30 so this may help you determine your strategy.

Also would be a wise move to ask for last 2 years financials and minutes of the AGM from the strata manager via the selling agent to check what works are in the pipeline as older buildings will need ongoing maintenance.

To be blunt, DONT DO IT. I have refinanced a few of these recently due to severely hampering borrowing capacity.

Last one went from $1300 cash out the door per month to just over $100 per month.

I suspect a very clever sales pitch appealing to human emotion is behind these nasty novated leases.

CanberraClaire wrote:

I guess at the end of the day, they’re passing their opinion off as fact. Dangerous, yes. Outside their scope, certainly.
Couldn’t agree with you more about who to listen to, but so many accountants are narrowly trained that unless they’re heavily investing themselves, I wouldn’t go near them for structuring advice either!

I work with accountants that are property investors and I know more about structuring finance than they do yet legally limited on how deep the advice gets never mind the average bean counter who often gives the exact opposite advice that is required.

And when I say “run this past your accountant before proceeding” I cringe with tongue in cheek.

• This reply was modified 10 years, 3 months ago by  Colin Rice.

No, you cant transfer the 400k to the new PPOR as it is secured against the original property.

You can access generally up to 90% of the original properties value to be used as a deposit towards a another property purchase.

• This reply was modified 10 years, 3 months ago by  Colin Rice.