Hi Rebrab

Best to get a legal person to go over the contract before committing to anything. There's a lot of money at stake – best to do it right.

Cheers

Jamie

I'd be keeping them for sure. Like Scott said – something needs to be there anyway. BIR's are much better than standalone ones IMO.

Cheers

Jamie

Hi CS

Is that the reason why your broker thinks it won't be approved? Because of servicing? If so, like Shahin said, that's something that should be ascertained prior to submitting.

Also, if that is the primary issue – then get your broker to suss out other options.

STG will do a 95% + LMI lend and their servicing can be pretty generous if taking out a 3 year fixed rate.

Cheers

Jamie

Hi Miller

Richard's on the money as always – providing the phones are still working in Brissy, I'd be giving him a buzz to get this sorted for you.

Cheers

Jamie

Are you using another loan to cover the the purchase/deposit? If so, you should base the repayments on 100% plus costs. 

As mentioned above, depreciation is a huge deduction that should be taken advantage of.

Cheers

Jamie

no same policies and serviceability calculations would apply – no special treatment. For medical professions and bank staff there's advantages – like 90% no LMI deals.

Cheers

Jamie

Hi there

Welcome aboard.

The price you pay for a PM will differ widely depending on the location.

For instance, in Canberra – you'd be paying around the 10% mark so anything in the 6's is dirt cheap for us ACT folk!

You need to crunch the numbers on the 6.6% plus fees and work out how much it will cost per annum in comparison to the 9.9% without fees.

Also, don't just shop for the "cheapest" – quality is important here. A good PM is an important part of property investing. No point having a sub-standard PM that's not proactive with letting your property and regularly increasing rents all for a few dollars savings each month.

The question I'd be asking here is "who can recommend a good PM in Frankston"

Cheers

Jamie

Hi and welcome aboard

All the holding costs and expenses associated with the property will be deductible – that includes the interest on the loan, property management fees, maintenance costs, insurances, borrowing costs, depreciation, etc.

Don't jeopardise capital gain in return for a small positive cashflow though. Without some sort of capital gain – it will be difficult to grow a decent portfolio.

Cheers

Jamie

Congrats Spuddles – that's great news!

Just don't forget what Terry mentioned above. You still need to settle first!

All the best with the property.

Jamie

Which lender are you with?

You might be eligible for free vals as part of your package – ie. ANZ's breakfree package.

Some allow free upfront vals which are technically supposed to be for the purpose of taking out a loan. 

Cheers

Jamie