I am aware of the rate of 2.5% p.a for 40 years if the property was built after 1987 – however just curious if there is a basic formula regular property investors go by when crunching the numbers on a potential IP? Thanks for your help scott no mates – I just dont think I would have any idea how to estimate construction/replacement costs on a pr…[Read more]

Can anyone tell me the easiest method to work out depreciation on a property built after 1987? I am trying to find positive cashflow properties however I want to know if there is a way to estimate what the depreciation would be in year 1 etc prior to getting a Q.S? Am I best to look at newly built houses (house and land packages) or just…[Read more]

Hey thanks for the comments..He has cash to contribute to the purchase as well. Is it better if he pays his cash deposit on my personal home loan and then I draw the LOC up to borrow the full 20% so my personal debt is reduced and borrowing for IP is at the maximum? Terry, I am still a little confused as to why it would reduce our borrowing c…[Read more]

Thanks for the advise guys!!

Hi goldies,Where abouts are you looking at investing in Regional NSW? I live in Regional NSW so depending on where your looking to invest I may be able to help.You can PM me if you prefer.Jacqui

Hey Banker – You picked it, I am talking about CBA home loans. To be honest I work for CBA, but dont hold that against me! hahaThanks for your advice around servicing IO loans. What Bank do you work for? I presume your in a lending role also?

Yeah Richard I know most Banks will calculate IO as P&I however im basing it on a lender which will use a 30 yr term on normal SVR loans where they will only use 25 year term on LOC's.  Do you and Terryw agree on not cross collaterising securities?

Hi Terryw,Yeah I think it makes more sense just to use a LOC on my personal home loan debt and a IO Loan for IP debt. Do you normally just recommend your clients to stay on standard variable over fixing?I think servicing would be better on a standard IO home loan as it is taken over a 30 yr term not 25. I just like the flexibility of the LOC as…[Read more]

So Richard do you normally go like a SVR Interest Only or Fixed or a LOC for the 80%. For accounting purposes would a LOC be ok as long as all drawings were only used for the IP? Thanks for your comments on Destiny also – I think I will miss it a miss for now.. my main issue is sourcing new areas to invest and having someone to give me an…[Read more]

A question to the finance/mortgage brokers out there – how do you normally structure your clients IP loans? Do you do an 80% Standalone Interest Only loan or LOC secured by the IP and 20% deposit in a LOC secured by the clients Owner Occupied property? I like the flexibility of the Line of Credit however just wanted to know the best way to…[Read more]

Ok, Thanks Richard. Only new to the forum so I didnt know you could do searches on previous topics. I will check out what everyone has to say. Cheers Jacqui