If they stick to the structure you've outlined then they should remain uncrossed. The loan offer docs will also outline which securities are being used for the loan – it should only list the one property.

Cheers

Jamie

Hi Andy

Welcome to the forum.

There's no right or wrong answer. It comes down to personal choice.

A few comments though.

An issue with $100k properties is that they're likely going to be in areas where capital growth is minimal.

Even if they're cash flow positive, they're unlikely to land you too much extra dollars per month.

You'll also need to check out whether lenders will provide 90% loans in the area that you're looking in.

Cheers

Jamie

Valuers will say that they look past this – but in my experience, a well presented, uncluttered property can be helpful when getting a revaluation done.

I just had an IP revalued 6 months ago and it came in a little short. I suspected it was because of the tenants living in the property at the time – they were quite messy and the house didn't present well.

Once they moved out, I organised another reval. It had gone up $20k – and there's been no growth in the area so I'm assuming the way it was presented by the new tenants played a part.

That said, I probably wouldn't bother with paying a company to provide the staging service though – especially if it's not for selling the property.

Cheers

Jamie

You can tap into the equity in your PPOR for an IP without it effecting the CGT exemption on your PPOR.

Cheers

Jamie

Hi IDV8

Welcome to the forum.

What you've described is quite common and can be a handy way to take advantage of Govt. concessions whilst kick starting your portfolio.

From a finance perspective, if this property is going to become an investment then I'd consider a couple of things.

Firstly, I wouldn't pour too much of your own money into the deposit. Why? Because you'll be reducing the loan amount on a debt that will become deductible in the future. It may also allow you to keep some cash as a buffer.

Secondly, I'd set up the loan as interest only with an offset account as opposed to principle and interest. Instead of paying down the principle, you'd place your savings into your offset account which basically provides the same result. When this property becomes an investment and you purchase your next PPOR, you can withdraw the funds from the IP offset account (which boosts your deductible debt back to its original level) and move it onto your PPOR debt (which is non tax deductible).

It's a difficult concept to understand when starting out – but read it a couple of times and it should become clearer.

Hope that helps.

Cheers

Jamie

I agree with Terry. There's also a heap of decent books (which you can grab from your local library) and monthly magazines that might be worth a look. For carrying out due diligence, there's a number of links on our website here

Cheers

Jamie

It's a huge sum of money so careful planning is required. What are you aiming to achieve from property investing?

A lot will come down to your own risk tolerance levels and other information such as current incomes, existing liabilities, etc.

With property, it's a good idea to surround yourself with a team of professionals – a good IP savvy accountant and mortgage broker should be a priority.

Cheers

Jamie

Nope, that’s pretty much it.

A valuation or market appraisal could be handy because you’ll need to be able to work out how much CGT is payable for the couple of years it was an IP. However, given it was purchased it late 2010 it’s probably not necessary.

Cheers

Jamie

I'd knock out the arch completely. It will open up the space better than any painting will achieve.

Cheers

Jamie

Was that the basis for the recommendation? Which banks are you refinancing from? I wouldn't be using resimac purely for a lower rate.

Cheers

Jamie