I accidentally got 2 depreciation schedules for the same house in QLD.  I filled out an internet enquiry form and the company I did that with interpreted it as a request and went ahead and inspected the house without my knowledge (got keys from the agent as the house was vacant at the time) then emailed me the report and an invoice.

However I had…[Read more]

We had a 4BR house in Moranbah that the original plan was to hold for 3 years.  However with events in the first half of this year resulting in enormous price increases late last year followed by mining companies deciding not to renew leases, which led quite suddenly to over 100 vacant houses available for rent, we modified our original plan and…[Read more]

….Hmmmmm… interesting.  Thanks Richard. 

 A bunch of SMSF schemes just popped into my head that I didn't know were allowed to be in there….

.

I thought that SMSF loans could not be interest only.  In that they by definition have to be P&I in order to satisfy the fundamental super criteria which is to increase equity and maximise the benefit for the members.  (which interest only loans do not unless prices go up, which they don't always)

ie to minimise risk they have to be P&I.  (Plus…[Read more]

Steve79 wrote:
The CBA won't insist on you using their planner, so may be worth your while shopping around to find a cheaper adviser if all you are after is a sign off for the loan to go ahead.

The happy sequelae to all this is that I have tweaked things a bit and can do what I was planning to without needing any bank.(or planner)  Thanks for…[Read more]

Smm91 wrote:
Thanks very much everyone for the help.Yes Dubstep, I'm planning to fly in there for a couple of hours this weekend. Do you think $545K all up is too much for a 4×4 ( all rooms air conditioned) house around that area?House Call, thanks for the link. Are the red areas in the map when you complete a search the flood risk areas?

No th…[Read more]

Smm91 wrote:
Hello everyone! I am a new member here and this is my first post.I'm from NSW, but planning to build my first investment property in Beaconsfield, Mackay. It's a land+construction package.My question is does Beaconsfield get flooded regularly? What sort of insurances are available for  flood affected houses? Are those expensive and…[Read more]

booge wrote:
Has anyone attended a seminar that wasn't a waste of time??

Hi I went to a Michael Yardney 1 day conference in Sydney for $99 (+bring a friend for free).  There were about 200 people there.  I was cynical at first because there was certainly a plug for his mentoring program before during an after, however I had a pad and pen and h…[Read more]

Qlds007 wrote:
Hate to say if it is a newly formed SMSF a lot of lenders will walk away.We never use CBA for our SMSF loans as their costs and requirements are way out of the market.Most lenders will require a Financial Planner to sign off that the Investment strategy is understood however you are looking at $150- $200. Where we are not acting…[Read more]

Shape wrote:
Up to 60% LVR with a commercial lender in the SMSF field is not an issue– however most banks with commercial SMSF will need you to see a financial planner before they will approve your loan, no matter how low your LVR is. Regards Michael

Why do they want me to see a financial planner?  That is the part I object to when my…[Read more]

Terryw wrote:
It is messy because how do you distinguish between properties. It could disadvantage you later. A LOC should only ever be used for investment expenses. ie You can borrow to pay deposits, pay rates, insurances etc. using an IO loan with offset is much better for getting incomes deposited, including wages and there would be no tax…[Read more]

Terryw wrote:
I don't like your LOC method because you are paying into an investment loan and it will be messy later – like your accountant says. What if you sold one property, how much of the LOC is associated with each property?I would keep the LOC, but set up an offset account against one of the IP loans. If all IPs are owned by the same…[Read more]

Jamie M wrote:
I have interest only loans on all properties – IP and PPOR.Have one offset account set up against PPOR.Get rent paid into offset and expenses paid out of offset. It's essentially the account for all property related income/expenses.CheersJamie

My PPOR was paid off ages ago, so is there any point in having an offset to a new loan…[Read more]

abcd1 wrote:
Hi, we have had the pleasure of dealing with the national bank in regards to buying a property in Moranbah apparently there lending manager in the Sydney office has done some research and seems to think that, there will be thousands of houses to be built in a town that is land locked. We were apparently preapproved for a home there…[Read more]

engelo10 wrote:
Hey Mattdesigner, Keep educating yourself with property books, magazines, seminars, this forum and somersoft and im sure you will meet competent and trustworthy people along the way to help and guide you in your property investing. I have built a pretty good crew within 1 year of buying my 1st property. Just be cautious with who…[Read more]

Terryw wrote:
It depends if you pay the full balance off every month. If you do then I think you could borrow from the LOC and pay off the credit card loan. You would be just refinancing debt. Should be ok as the money goes straight from one loan to the other.

Thanks. That's what I figured.  I'll leave you alone now. Appreciate your input…

on a similar vein, supposing I go and rack up $500 worth of stuff at Bunnings to help renovate an IP (again no personal expenses) using my credit card, can I then pay off that portion of my monthly credit card bill using my dedicated investment LOC, and the remainder using my normal savings account and then claim the interest generated by using the LOC?

Terryw wrote:
Unless you want to cross coll the properties (not good) you would need one LOC per property.LOCs generally have a higher rate than IO loans.

Ok thanks.  Now supposing Bank A gives me a lower rate for its LOC than Bank B.  Can I transfer the full amount of the LOC from Bank A into the bank B LOC in order to save on the bank B i…[Read more]

interesting informative educational thread.  Thanks all.I have 3 IPs each with their own free-standing (not cross lateralised) interest only loans, and all of them have gone up in value.  Is the simplest way to access the extra equity to set up individual LOCs for each IP?  How do you stop it getting too bit confusing, once you get more and mo…[Read more]