They’re two different things.

Having said that – a refinance and equity release often happen at the same time.

Cheers

Jamie

As mentioned above – destructibility depends on purpose.

Borrowing against an investment property to pay yourself back money that you’ve previously contributed wouldn’t justify a deductible expense.

I’m not an accountant though so please seek pro advice.

Cheers

Jamie

All depends on the lenders policy and your borrowing capacity.

Some lender are still ok with cashouts up to 80% for investment purposes – it generally involves a full application process.

Cheers

Jamie

Hi Dave

What’s the issue from the banks perspective? Is it lack of a deposit?

What size block are you looking to build on?

Which lender have you approached so far?

Cheers

Jamie

Hi there

What benefits do you believe you’ll obtain by investing via a different entity?

Cheers

Jamie

Hi there

Best to avoid crossing – it can cause a real mess.

Having said that – you can have all loans with the one lender and keep them uncrossed. It’s quite easy to do.

Let your broker know if you’re unhappy with the structure he/she has outlined. The $1k fee seems a bit rich if they’re providing you with poor structure advice.

Cheers

Jamie

Hi there

This is an area I’ve started to take a closer look at. Some clients are starting to go down this path and my wife runs an airbnb management company so I’ve taken more of an interest in it.

1. Is income solid?
Like any investment – some will do better than others. If the property is in a popular tourist destination that isn’t dependent…[Read more]

Hi there

This is an area I’ve started to take a closer look at. Some clients are starting to go down this path and my wife runs an airbnb management company so I’ve taken more of an interest in it.

1. Is income solid?
Like any investment – some will do better than others. If the property is in a popular tourist destination that isn’t dependent…[Read more]

Agree with Richard – generally around the 7% mark

Having said that – there are other factors involved when taking into account max borrowing for investors. Some lenders add back negative gearing, some take a higher percentage of rental income, some cap the yield….the list goes on.

Cheers

Jamie

Hit your current lender up for a lower rate

Most lenders differentiate between owner occ and investment.

With some lenders it’s a straight forward process – with others it can be more difficult.

Cheers

Jamie

Avoid the one stop shops that source and finance property.

Most are real estate agents in disguise – making massive commissions from overpriced off the plan properties.

Cheers

Jamie

Hi there

Any particular reason you’re narrowing it down to only NSW?

Cheers

Jamie

Sounds like you’ve got the correct structure in mind.

The loans don’t have to be via two different lenders – you can have the two loans (equity release and IP) with the one lender and still keep the loans uncrossed. The benefit here is that you’ll be able to negotiate a better rate discount due to the higher aggregate borrowings. If you’re on a…[Read more]

Keep the house uncluttered and well presented for when the valuer arrives.

If you’ve got strong, recent, comparable sales – have those available to show the valuer.

In terms of best bang for your buck – usually painting/flooring is the cheapest value add.

Cheers

Jamie

You’ve got a couple of options.

As above – you could engage an REA and get their opinion.

Otherwise – you could get a valuation done now and another done after the work is complete.

Cheers

Jamie

Hiya

You need to a) save a deposit and b) show evidence to a lender that you can service the loan you’re applying for.

Cheers

Jamie

Hi Stuart

Which suburb is the property in? I have one in Downer that’s near a future light rail stop. The recent growth in the area has been quite good!

Whether another purchase is doable depends on your borrowing capacity. On the surface – it looks like you have enough equity to support a second purchase so it will just come down to your…[Read more]

I’d only ever use a property manager for looking after my IPs – I don’t have the time/patience/expertise to deal with them.

Having said that – finding a good property manager isn’t always easy :-( I’ve had some shockers, some great ones and everything in between.

Cheers

Jamie

Hi Chris

Realistically – you’ll need to bolster that income. Whilst technically it’s probably possible to purchase something (providing you live rent free, have no debts, minimum living expenses and a deposit) – that property will prob be in an undesirable area with little prospects for growth.

I’d focus on the income side of things before…[Read more]

Chance are that REA is affiliated with the company they recommended.

Personally – I like to minimise conflicts of interest so I’d appoint my own MB rather than go with the one the REA is recommending.

Cheers

Jamie