Buying property is easy peasy compared to raising kids :-) You’re in for a ride.

Cheers

Jamie

Hi Ben

You don’t always pay a higher rate for construction – and when you do, it’s often easy enough to roll the loan into a standard loan upon construction being completed.

What are the negatives when it comes to borrowing from parents? The big one is mixing business with family – which can work well for some and not others. Will you need/want…[Read more]

You should be heading there for Summer :-) – but then again, you get enough sunshine up your way so probably don’t need the vitamin D as much as us down south.

Cheers

Jamie

Hi Lucinda

There’s not a whole that can be saved from sourcing the “cheapest” property manager. If property manager A was 2% cheaper than property manager B, we’re talking about a discount of $8 per week (tax deductible) – so I wouldn’t let that be an enticing factor.

Cheers

Jamie

Hi John

Congrats on your first child :-)

It’s unlikely you’ll be able to purchase something for $500k+ at the moment due to the lack of a suitable deposit.

Your current home is already sitting at an LVR of 91% (unless it’s gone up in value a fair bit since a year ago) and $40k isn’t quite enough to fund the deposit/costs on a $500k+ purchase in…[Read more]

Hi lucinda

Welcome aboard.

Agree with benny – do a search on the forum and you’ll find lots of threads.

Cheers

Jamie

Hi Ben

If the second dwelling is going to be an IP then it would make sense to split the loan up so you identify tax deductible (IP loan) from non deductible (PPOR loan) debt.

It usually helps splitting it into ownership percentages when it’s sibling/friends borrowings – it makes it easier for each party to keep tabs on their finances. Keep in…[Read more]

Hey Ben

No problems at all – my pleasure. I enjoy sharing info on the forum and helping others learn.

I’m big into photography at the moment – so find myself on the other side of the fence on those forums. I’m the new guy learning stuff and asking lots of questions :-)

Back to your question though. Accessing 90% will come down to your borrowing…[Read more]

Hey Ben

No probs – here’s a rundown on the calculations.

Let’s assume you’re accessing equity up to 80% of your properties value.

We take 80% of the $450k value which equals $360k. We then subtract your current borrowings from that ($360k – $350k = $10k). So if you take your borrowings up to 80% you’ll be accessing a $10k equity…[Read more]

Hey Ben

You’ve got $100k in actual equity but only $10k in accessible equity (if you take your borrowings up to 80% of the properties value) or $55k if you take your borrowings up to 90% of the properties value and pay some LMI.

The equity loan is set up as a second loan – once you drawn down on it, you’ll start making repayments on it. Usually…[Read more]

My wife self manages most of our properties.

Not to save money – it’s just that we had so many hassles with PMs we decided to do it ourselves.

As long as you treat it as a business and follow process – it’s not too difficult. You’ll need to be up with tenancy legislation in your state and be prepared to make tough decisions and have…[Read more]

Yeah it’s a shame about AMP – particularly for those with large portfolios. Guess it’s a matter of using them a little bit earlier than leaving them for last.

Cheers

Jamie

Keep saving and try to boost the deposit. 95% IP lends are harder to come by these days.

If you add some value to your current property, you might be able to access some equity from it.

Cheers

Jamie

Ok.

If you’re keen on proceeding with the purchase – at least appoint your own finance person and solicitor. This way, you’ll avoid some conflicts of interest. It’s good you’ve contacted Richard – he won’t stuff you around.

Cheers

Jamie

Hey Ben

I wrote this blog article about positive/negative gearing a while ago. Hopefully it helps.

Cheers

Jamie

Hi julloumar

Are you seeing a financial planner or a mortgage broker?

Is this person affiliated with the property investing company?

Cheers

Jamie

No probs.

It will reduce LMI but it won’t effect the amount you need to borrow. The guarantor puts their property up as collateral – but you still need to borrow however much you need to settle the purchase.

Cheers

Jamie

Hiya

I wouldn’t say purchasing under a trust is the norm – in fact, I’m seeing less and less of it these days.

It has its pros/cons and is something you should speak to your accountant about before deciding as it will be dependent on your individual circumstances.

Cheers

Jamie

Hiya

Lenders will usually want to see some consistency with the commission/bonus payments over time – the timeframe varies between banks and it’s not uncommon for them to want to see two years worth of consistent income.

So a higher base salary might be better in the short run – and a base + commission/bonus better in the long run (providing…[Read more]

Cold calling property related company = run for the hills

Cheers

Jamie