I have clients in Melbourne who previously had taken advice by C&N and it has not worked to their advantage. Both are PAYG salaried and little risk of being sued, they now have 3 hybrid trusts with one IP in each.

It just looks to me selling a product and fitting the advice to suit the sale.

It does not help their portfolio development.

I am…[Read more]

I have clients in Melbourne who previously had taken advice by C&N and it has not worked to their advantage. Both are PAYG salaried and little risk of being sued, they now have 3 hybrid trusts with one IP in each.It just looks to me selling a product and fitting the advice to suit the sale.It does not help their portfolio development.I am sure…[Read more]

Josh,An interesting starting position.I think Jan Somers books provide both an easy reading style and covers a lot of the topics needed for an investor. INteresting about being out of date, her first book was written of her experiences in the early 80's of high interest rates, maximum 80% loans, limited lenders etc. Sounds familiar?I am not a big…[Read more]

You have made it a little more complicated by the way you have done it.Signing at auction and/or nominee is fine as the nomination into your name would have happened before settlement and your name is on title, so the property is yours as your PPOR. Did you claim FHOG as well and PPR stamp duty concession?The funds to purchase it were supplied by…[Read more]

Woodie,My  view from a finance perspective, I would generally not recommend that strategy to anyone unless they had significant funds of their own so they would not need to borrow much to purchase a PPOR. Interest cost on non-deductible debt is to be minimised as quick as possible. From an emotional view, there are good reasons for some folk to…[Read more]

James,I have many clients using equity normally via a LOC secured on their PPOR, to use to fund the deposit of an IP and also fund the cash shortfall. My view is you need about $120k per median priced IP ($450k mark) in a LOC facility to be comfortable, with $80 to $90k used for the deposit and costs and the remaining $30 to $40k as the safety net…[Read more]

I think too many investors focus too much on areas or locations for that next big thing or growth suburb, rather than considering what type of property they need to buy in order to be able to obtain finance to buy the next one after that to build their portfolio.Is it capital growth you need, is it income or rent yield, will higher depreciation…[Read more]

If you already own your home, it makes it more difficult and can be costly to try to do something after the event.Asset protection can fall in a number of categories, a legal structure like a trust or even transferring it all into a spouse's name depending on who is at risk of being sued, alternatively you can gear it so little equity is available…[Read more]

The new NCC seems like a lot of Rudd government programs, rushed through without proper thought about consequences. I doubt it was intended to include non business lending like this otherwise one mate lending another mate $100 over a weekend gets caught if we take it to extremes. Why not look at another structure, perhaps a trust purchasing the…[Read more]

I'd Google NRAS WA.I would also contact some of the approved tenancy managers in WA – see below link http://www.fahcsia.gov.au/sa/housing/progserv/affordability/nras/tenancy_managers/Pages/tm_wa.aspx Good luckGreg

Carolyn,I too have been looking at the financial aspects of NRAS housing to see whether they make sense for my clients. It is still early days for NRAS but the basis of investing in property is primarily location. If the properties are being built in areas where there is some or good capital growth and rent demand is high, it should be considered.…[Read more]

As a general rule, it is cheaper from a cash flow perspective to rent yourself than live in your own home, assuming similar rents paid. The reason is the tax breaks that you receive on the basis of a negative geared property. You put in a ITV form and receive the benefits of the  lower PAYG deducted from each pay. However with an income of $53k,…[Read more]

Andy,If the numbers make sense then perhaps refinance the IP and payout your relative. The answer will depend on what capital growth is expected over the next 5 to 10 years and what the rent yield is. If the numbers show that you can can get better returns elsewhere, then consider selling. It will depend on CGT as well.As to long term investing,…[Read more]

Peter,The views Richard expressed are similar to what I would have said as well but perhaps I would not be as aggressive with LVR.  Lenders are more comfortable with 85% than 90% and not many lenders are going to 95% without it being a very strong deal. It may also take longer for a revalue and refinance strategy to be effective, having to…[Read more]

Aman,The best course of action will depend on what you want to achieve longer term. If you just want to purchase 1 IP and no more, you could do it all through CBA. If you want to build a property portfolio, there are more appropriate options to consider.There are 2 ways to purchase another property (assuming you are just using existing equity),…[Read more]

John,If you are swapping lenders from AB anyway, look around for the best offer for you. While NAB is competitive, they are not the best around, their internal valuation policies are very conservative and hit and miss and you get into the cross-collateralised or at best, 'all monies guarantee'. You would probably be better served going to another…[Read more]

John,You are in a good position now, well done.The real question is what are your goals and timetable? Once you have that, you can better put a strategy and plan into place to achieve it.On the basis you want to continue to purchase IP's I would refinance your 1st IP probably to 80% if you can (that will depend on your borrowing capacity for this…[Read more]

Lenders and mortgage insurers generally have post code restrictions in high density postcodes. Melbourne has these as 3000-3001 and 3004-3009. It is where a security is in a development of 30 to 35 units or more or greater than 4 or 5 stories.It is about perceived risk and if they need to sell because you default, will they be able to readily…[Read more]

It's a debate no-one will win.For investor clients, I only use a fixed fee for service model and rebate back the upfront commission I receive (net of GST). I provide a long term strategy plan, documentation and folder that outlines what they need to do to achieve their goals based on building a property portfolio, that is what they pay for and if…[Read more]

Each comment above is valid.You need to do the research. I would be reluctant to direct a client to such an OTP property as a 1st investment. You would be better looking at more a boutique development of 4 to 20 apartments in inner suburbs, where once completed, you will have a mix of OO and Investors, where not literally hundreds of apartments…[Read more]