Most property managers take one week’s rent as a ‘finders fee’ for sourcing new tenants – even if the property is currently tenanted, they also deduct fees for cost of drawing up a new lease, and a monthly administration charge. What you receive each month is the net amount – i.e the amount of rent less fees & charges. Best advice is to read your…[Read more]

Gday,
I am from Canberra but travel to the Sth Coast frequently to visit my parents just north of Batemans Bay. I am familiar with Moruya, but can see a few problems in terms of investing in the area.
1 – Relatively high prices in comparison to rental yield – not many of them even make the 1% of purchase price in weekly rent – so whatever property…[Read more]

“Westpac for example, disadvantages their clients, by loading a further margin on top of their normal margins, to whatever you owe them. So, you can take your application to the next bank and have all the options open to you again and you’ll find most lenders will take your current repayments as is, without loading margins!”

Grateful if you could…[Read more]

My husband and I manage 2 IP’s ourselves, and have had our share of minor reno’s and clean ups- usually during the period we are showing them to potential tenants. Our attire usually reflects the work we are carrying out -which doesn’t seem to bother the tenants. I do try however, once the tenants are in to dress ‘professionally’ as I am 22 yrs…[Read more]

“Our problem is that we have no debt servicability, but want to borrow against the equity.”

You have no income at all?
At this point I don’t know of any other means of accessing equity other than redrawing or refinancing against the property – both of which requires a loan…
Unless you can find shares that will pay regular dividends that will…[Read more]

I think I have somewhat figured it out…
What I meant by encumberance was the bank’s ownership of a property. What I have established from other posts with reference to a split loan :
Property A: Value $300K, loan = $210, equity with 80% lvr = $30K
Goal – to purchase IP price = $150K
therefore would apply for a split loan which would involve…[Read more]

Hi guys, this is a topic I have been toying with lately too. I understand how to access equity, through refinancing, or redrawing accessable equity, or selling. But was wondering if there is a bank/broker etc who has used encumberance as a form of utilising equity? I hate the thought of watching my own mortgage increase. I think perhaps this is…[Read more]

Thanks all for your responses-
I have about 10K available for redraw on my own home, however I would like to avoid dipping into it. My own mortgage is a debt i want to quickly get rid off to allow me to free up cash for investing. I divert part of my income into a high interest savings account which i then use for deposits on IP’s. I was hoping…[Read more]