Forum Replies Created
- TC62 wrote:I have completed the Cert IV for the knowledge and can tell you categorically that the ONLY true way to learn the tricks and ropes of a REA is to be one.
I agree and I think this holds true for a lot of real estate type professions. It’s on the job where you learn the ropes.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
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lamp1111 wrote:Thanks Jamie.My current home loan account is an offset account type, which I can access my money anytime, in this case, can I just take out the 20% from this offset account without increasing the loan of my current property? I then borrow the 80% from a different bank?
Cheers,
LampHi Lamp
I agree with the other guys. I’d borrow against your PPOR for the deposit and purchasing costs – this will make your total borrowings for the IP tax deductible (if you used a large cash deposit, only 80% would be deductible).
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
tigermiger wrote:1) Is it to late to change my home loan to Interest Only, so that I can rent my current PPOR and move into another PPOR?Hi tiger – nope, you should be able to switch to IO now.
tigermiger wrote:2) Is it ok if i use my equity in my current PPOR to buy my first IP then eventually sell PPOR and buy new PPOR? or would it be recommended to not to buy an IP until I move into a new PPOR?Yep. When accessing the equity, set it up as a second split to your current PPOR mortgage. That way you have separated your deductible debt (deposit and purchasing costs for IP) from non-deductible debt (PPOR loan). If you sell your current PPOR – you could take the proceeds and place it on your new PPOR (place it in the offset account this time – not on paying down the principle).
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Lamp
Easiest way to go about it is:
You increase your current loan by an amount that is 20% of the purchase price of the IP ($72k) + purchasing costs. Let’s say, for a nice round figure that it’s $90k.
You would set this up as a second split to your existing loan (ie. split 1 being your existing PPOR loan and split 2 being your loan for the IP deposit).
You would then take out a loan for the remaining 80% for the IP.
Hope that helps
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Derek wrote:mjjg wrote:The bank's (Westpac) lending officer has told us that they would only go to 80%I am not a broker but if you are self-employed this may be a reason for the LVR limit stated.
It may also be a postcode (greater risk for bank) issue for one or both of the properties.
Good point Derek. I was assuming a full-doc loan.
In any case, you don’t need to cross your securities to achieve the same outcome.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Terryw wrote:I would be careful about getting the utliities in your name. If they don't pay the utility company will come after you, then you will have to chase them – extra hassle.Agreed – that’s something you don’t want to worry about. I’d always be worried about the utilities bill being sent to the IP (with the account in your name) and the tenant throwing it out or not letting you know that it was due. It could end up in a nasty little default that you weren’t aware of.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
mjjg wrote:(i) is it possible to borrow more than 80% on an invetsment property?Yep, up to 95% is possible at present. Not easy – but certainly possible.
mjjg wrote:(ii) is tax deducution allowed only on interest on ‘new’ borrowings when ‘converting’ one’s current ‘principle place of residence’ into an invetsment property?Tax deductibility is determined by “purpose” – what is the “purpose” for borrowing the funds. If you’re borrowing to purchase a new “primary residence” then these funds will not be deductible (because it’s not an investment). However, the loan on your current primary residence will become tax deductible once it converts into an investment property.
FYI – your Westpac banker is crossing your loans and restricting your borrowing to 80% LVR (this is giving them total control of your assets whilst minimising their risk). This is not in your best interest. I know this is going to sound incredibly biased – but this is a perfect example as to why using a broker who understands investments can be of a huge advantage.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Heard it all before.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
mattnz wrote:It definitely sounds like you are trying to get maximum potential upside while exposing your parents to huge potential downside. You should make your first priority removing your parents risk in your investments before even looking at expanding your own empire.Also note that when your Aunt started building up a portfolio, conditions and prices were very different. What was working then won’t work now.
I agree with Matt – perhaps that should be your priority at present.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Sandy
Best of luck with it.
We manage a couple of our own in Canberra and have had no problems so far (touch wood).
Set-up an excel spreadsheet that captures all the expenses (interest repayments, rates, insurance, body corp, etc) and income (rent). Spend 5 minutes each month updating this spreadsheet – I’m happy to send you mine if you like (just shoot me an email).
The easiest method of collecting payment is giving the tenant your BSB and Account number – it’s more convenient for everyone (and easier to track).
I would have as little involvement in the utilities as possible – let the tenant set that up themselves.
I hope that helps.
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
juddmcelroy wrote:What i also would like to know is that if i were to buy my next property without a gurantor, do i have to pay mortgage insurance for my othere investments as well as the new investment?
This is what i am afraid off. Maybe i should slow down and wait for my investment to get equity!Hi Judd
No, you won’t. I’m not sure how the other two loans are structured but if you’re using a $30k cash deposit this loan should be set up separately to the rest so you would only pay LMI on it (not the others).
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Lamp
Welcome to the forum.
These threads will help you out. It’s a popular topic – there’s heaps more.
https://www.propertyinvesting.com/forums/property-investing/general-property/4328354
https://www.propertyinvesting.com/forums/property-investing/help-needed/4335188
https://www.propertyinvesting.com/forums/property-investing/help-needed/4331884
https://www.propertyinvesting.com/forums/property-investing/help-needed/4330716Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Wynyard wrote:what do you consider high-risk tenants?To flip the question around – I find the better tenants tend to be those with property manager referees. Having a chat with a PM that can vouch for a potential tenant goes a long way.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Catalyst wrote:IYou don't HAVE to buy.Good point. I guess if you look it that way it could end up being a really cheap holiday. Perhaps it’s time to start paying attention to spam faxes…..
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I don’t see a problem with aggressive investing – I’m guilty of it as well. However, it might be worthwhile removing the folks from the picture if you’re planning on building the portfolio. I’m not sure of your personal situation but from my experience, parents are generally happy to help the with purchasing the first property….but purchasing multiple investments might make them a little uncomfortable.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Or refi that HSBC loan over to a lender that does 85% LVR without LMI – that way you can tap into some of that equity without paying LMI…..just another thought.
Those funds could be used as a deposit and purchasing costs on IP 2.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Shape wrote:4. $500 is over priced for a valuer, it’s normally around $220 for a private valuer! can i ask whats the reason for getting a valuer? It sounds like your after a way to increase your rent-wouldn;t speaking to your agent who deals with this on a regular basis make more sense?I think he’s talking about a QS.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
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Hi Steve
Welcome to the forum.
Keep that cash in the offset – it’s rainy day money as you’ve alluded to.
I’d look at tapping into some some of the equity in one of your properties to fund the next purchase. The PPOR is almost at 80% LVR so accessing equity is likely to incur some LMI. It looks like IP 1 will be similar (unless you add a fair bit of value). Personally, I don’t have an issue with paying LMI if it allows me to access the banks money (and allows me to keep my cash).
How much are you looking to spend on IP 2?
$500 for the depreciation schedule sounds fine – however, the valuation they provide won’t be accepted by the lender (they will want to carry out their own).
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
juddmcelroy wrote:what would i need to save or do in order to get my next investmentfrom a year from now i could save about $30,000 deposit and would like to buy next property under $225,000
can i buy a investment property with just $30,000 deposit or do i have to wait for equity of my propertys to get higher
Hi Judd
The short answer is yes.
You could look at taking out a 90% loan with LMI capitalised on top. You would need $22,500 for the deposit and the remaining $7,500 will go towards stamp duty and other purchasing costs (it might be a bit tight – so a couple of extra thousand would help).
The other option is taking out a 95% investment loan. In this situation, you would require a smaller deposit – however, they’re not as widely available and 95% lends are scrutinized more heavily then a 90%.
Obviously, your borrowing capacity and credit history will also come into play.
Best of luck
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
TC62 wrote:Anyway, do your homework but for goodness sake do something! There is never a perfect time to start investing but you have to start sometime. Do your homework and due diligence and then strike. GOOD LUCK!!
Good advice. It's normally the hardest part of investing – overcoming that inititial fear. The first IP's the hardest – after that it'll all be about the numbers and the greatest fear will be hitting a serviceability wall and not being able to buy more
All the best with your investing.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
