Highest income earner holding a CF+ property as majority owner isn’t good.

Do you need to meet an accountant face to face or would you be happy to use email/phone? If you’re happy with the latter – you can choose an accountant from anywhere in the country.

Cheers

Jamie

Hiya

Not sure if this is a question, rant, statement or all of the above.

Yep – dodgy operators are in all facets of the property game. There are also some hardworking, ethical ones that aren’t obsessed with making a dollar. It’s just a shame that there’s so many of the former.

With all service professions – carry out your due diligence and seek another opinion if you feel that you’re not getting the right information.

Cheers

Jamie

Hi Ben

House of Wealth usually get a good wrap on the forums – not sure about the financial advice side of things though.

Cheers

Jamie

Having said that – it is important to have the right structure in place to optimise your money. For instance, if you have multiple properties – set up IP as interest only, link an offset to a PPOR loan, ect.

Cheers

Jamie

Hi Sonia

I had two approved recently – one at 80% and another at 90% so LMI was involved. Admittedly the male applicant was in a long term PAYG role that wasn’t on a contract basis.

Cheers

Jamie

It was numbers 1 and 6 for me.

They weren’t fast to respond to emails/calls – I’m talking days to provide a response. The communication wasn’t clear either – resulting in vacancies which could possibly have been avoided.

Now my wife looks after most IPs and things go smoothly.

Cheers

Jamie

Do you need face to face contact? If not – you can choose a broker from anywhere.

Cheers

Jamie

Hi David

The biggest negative in my mind is when the principal on the PPOR loan has been paid down to a low amount and the property then gets turned into an IP. At this point, there’s only a small loan to claim a deduction from – and if the person purchases another PPOR, they often have a large non deductible debt set up against it.

This can be avoided with the right finance structure in place from the start which is IO with an offset. Here’s some more info on the structure from an article I wrote for Australian Property Investor magazine.

Cheers

Jamie

Jacqui Middleton wrote:

Be wary of anything that is government funded. NRAS falls within this category. Government changes every 4 years. I don’t think you fancy shivering in your boots just after every election to see the fallout to your cashflow position.

Excellent point!

Cheers

Jamie

Hiya Robinson

The RBA doesn’t dictate how much of a deposit is required to purchase a home – for a new property you can still get away with a 5% deposit.

The 3 year lease isn’t the end of the world either – some buyers may look favourably at this.

Cheers

Jamie