Also you mention you have property, maybe drawing equity from them is cheaper in the long run,Higher LVR's, Line of credit etc…..(proving income now for loans while you don't own the station now could be an idea assuming you have a stable income stream now?) then the money is yours to go ahead with your venture?

Yes depending on the location the banks generally view this as medium to high risk,hense the rubbish LVR.  Remember to have a well documented business plan (even written out by your accountant preferably)when you approach the bank. If you have other past businesses that have kicked goals this will weigh up for you also(add these in).Approach the…[Read more]

Yes Even if your shifting your money around in the mean time, keep st goerge account open just for bookkeeping etc, they do have good introductory/honeymoon interest rates at the moment that are fairly competitive.(they also revert to a lower rate than standard variable at end of term too)Congrats on deciding to go a head with an IP.With the…[Read more]

Yes great post Terry.Keeping your own cash out of the deal is always the best option. Using the banks funding(which depreciates with inflation!!)is always preferred.There are many factors like Richard said that come into play with the budgeting and No 1 importance is the buffer!!

Yes agree also, IO is great. Especially for investment property later on after the FHOG obligations etc Maybe worth looking at pre-locking in a fixed interest rate unless you have the capacity for the interest rates to rise by maybe 2-4%(purely speculation however they are only heading one way…..)

Crosby Above is spam for sure, i have reported abuse…..Hi Cass,If you pay a deposit more than 5% this sometimes qualifies for the genuine savings(or does not require the bank to prove savings)….So if you were borrowing money(from personal loan, family etc) for settlement and paying it back with the FHOG and stamp duty concessions(on settlement…[Read more]

Firstly congratulations on even thinking about buying an IP!!Secondly 99.99% of the time- NEVER sell!(there are time whens its applicable though)it just cost too much, capital gains, mortgage break fees, agent fees…….(long list)Equity release is usually the best way however everyone's situation is different.based on what you have estimated you…[Read more]

Wow, that is new.The inspector is pretty crafty!  You could somehow politely ask the purchasers if they think they are getting a cost efficient service for their money. I thought you payed the inspectors for the assurance of pest etc. He is essentially palming off the responsibility(come a court battle)??  I would be interested to hear what your s…[Read more]

Yes very good posts above!Another thing to be aware of is the factor of stamp duty.I rung the stamps office for clarification however im not 100% certain, you need to move in in the first 12 months(not 100%) sure, and unfortunately live in the property for the full 12 months to receive the full stamp duty concession.Its hard to clarify however…[Read more]

Hi 1) You usualy have a limit on how much principle you can pay off anually with an interest only loan, however it depends on whetheryou are renting it out or living in it which makes it viable or not. Having offsett account means more liquidity, much prefered however different for every one.2)In my short experience the LMI is higher if you can…[Read more]

I have spent considerable time investigating the chan naylor property trust with the tax department, scams dept ect etc.A FAIRLY big accountant warned that the tax dept were out to shut down the chan naylor trusts as they were breaching a few "rules"After many calls emails ect(to the ato asic scams ect)a they pretty much came back and said it…[Read more]

If you can get a line of credit(not sure what your gearing is now?) going into the next IP(in the best location you can afford)would be the best option in my opinion, just try not to cross collateralize the next IP with your existing( by means or credit line paying cash not using current equity different banks trusts etc…)The inner suburbs are…[Read more]