If you are a long term buy and hold investor, then the DEF issue is not a factor.My view is that you use a lender that will lend you the funds for the property you want to buy and if you are building a protfolio, you use lenders in the order of lowest borrowing capacity first. How quickly you need finance and settlement needs to be considered as…[Read more]

While the contract date is the date that the CGT is calculated on, if you get the timing right and say sell early July 2010, your tax return may not need to be lodged until May 2012 by a tax agent, so you could have up to 22 months before you need to remit the CGT to the ATO.Just a factor to consider.Greg

Helen,Why not use a broker that supports and contributes to this site?Depending on the state you are in and whether you want face to face service, for instance just on this topic,  Richard Taylor is Kenmore Qld, I am in Melbourne. There are others in other states.If you need a loan quickly, you may need to use one of the non-majors with quicker…[Read more]

Keiko,As a general guide, CBA LMI rates for a loan < $500k and  94-95% LVR, is about 2.5% plus the relevant state stamp duty.You could expect $12k plus as a once off fee.To qualify with CBA you will need to be an existing customer and they define this as 6 months at least.Nearly all lenders have exit fees but CBA is one of the lower ones, I think…[Read more]

It depends on your long term goals.If you want to build a property portfolio over time, you take one approach, if you just want to own one IP, then there is another approach to consider.One the presumption you are looking at building a portfolio over time, than for flexibility, get your home revalued and refinanced setting up a separate facility…[Read more]

Wisepearl,Check with a good tax accountant but my understanding is that you can apportion LMI over the period after it becomes an IP on the basis of 1.5 of 5 is private expense and 3.5 of 5 is an investment expense.If the LMI cost was $5k all up, for the first year you lived in the property, it is not deducible.The second year, you lived in it 6…[Read more]

Dougie,There is no one answer. As a general principal, the answer would be yes but it should not be seen as set in concrete never to be questioned.There are circumstances when you should sell, when the future growth/rental rental returns are not stacking up, better opportunities arise, change in personal financial circumstances, even if a body…[Read more]

Mel,Whether it is a LOC or term loan, the loan to value ratio (LVR) is the total loan amount divided by the property value.A $480k loan on a $600k property is an 80% LVR.It is the overall debt total on the security property that the lender holds.If you need to access more funds, simply borrow to a higher LVR. Depending on use and on lender, you…[Read more]

Are you going to hold the new property or sell it?If it is a build and hold and then revalue and refinance, whose name it is held in  can be determined whether it is short term negative or positively geared and your respective MTR's. Ownership may not need to change depending on what your long term strategy is.If it is to be sold after…[Read more]

From where the post started to the paths it has taken, there is some excellent points raised about choice and balance.I work with property investors and I work with seniors, people up in their mid 80's. They are two very different markets but I gain information and education and knowledge from the seniors to see what paths they have taken to get…[Read more]

I refer clients to a select and small number of buyers agents in Melbourne. I have met them all, gone through what they offer, what type of properties and what areas they cover and whether they specialise in the investor market or OO space. I then say to clients, go meet them, ask questions and at the end of the day, it is about the service…[Read more]

Rob,I would agree with getting professional advice but make sure the accountant is an experienced property tax person because I have heard some terrible uninformed advice from many accountants.1. As it is your PPOR you can transfer ownership to your spouse with no stamp duty implications. Trying to sell it and creating loans between spouses smells…[Read more]

It depends on the strength of the deal, how well you are able to show servicing coverage as well as the other factors Richard mentioned. From what you said with a $100k income, you should be able to easily chow service coverage. I recently obtained finance for a Mt Isa PPOR with a client just in the job 1 month.Even though you have just 5%…[Read more]

Cellphone,You have not provided enough information as to what sort of growth you are after or the gearing or cost of funds or your MTR.$500k is a reasonable amount of money, it will buy a good apartment in most capital cities where rent yields may get to 5% plus but it will most likely be negatively geared. What is too much for you?In Melbourne,…[Read more]

You can agree to whatever you both want.It does not have to have any interest component, just delayed payment terms.Any interest your uncle's receive will most likely be taxable in their hands, so it will depend on their own financial position. The principal they receive should not be assessable under any definition for either ATO or pension…[Read more]

Welcome to the world of real estate agents of up-pricing to get the deal and then conditioning you down to make an easy sale.To get a valuation you can try another three or four agents in the local area to do a free market appraisal and/or pay to get a sworn valuation by an independent valuer. It may cost you around $500 depending if they see it…[Read more]

JoshC,Not knowing your particular circumstances but based on your comments, I would suggest considering:purchase more negative geared properties in your name now that have capital growth potential – effect to reduce personal tax and have longer term potential to revalue to extract equity. Note most trusts do not allow you to access the negative…[Read more]

,FrugalOne,It may be a different interpretation in the use of the terms equity and debt here. It is debt you are using as Richard said,  it is 100% debt as you are borrowing the funds to be able to purchase the respective properties. In each case you are borrowing these funds secured against existing properties. The strategy you are outlining is…[Read more]

In essence you are correct. You still need to qualify for the new loans being able to show sufficient income.In your example, although you have a $100k equity, you will not be able to access all of that, you could refinance that first property to perhaps an 80% or some lenders may go to 90% lend, meaning you may be able to set up a separate loan…[Read more]

For a $380k loan, most lenders will only offer a 0.7% discount off standard variable.As to the future, the lenders will move in and out of the market as their available funds, pricing, management bonus decisions etc vary. Look at Westpac, 12 months ago they were competitive and growing, then they lifted their standard rate well above the other…[Read more]