Ben wrote:

Are you saying if its a local purchase you would not be getting as much bang for your buck?

Unless you’re extremely time poor and/or don’t have a lot of confidence in your own DD – I prob wouldn’t engage a BA if buying in close proximity to where you live.

Cheers

Jamie

If it’s an interstate purchase than I think the right BA would be worth it.

$6k sounds about right. Some are bit dearer.

Ask for some recommendations on the forum for BA’s in the area you’re looking in.

Cheers

Jamie

Sure thing Louie – looking forward to helping you.

Cheers

Jamie

Looks like there’s been some good improvements today.

The 10 recent threads on the front page is a good addition. The larger text looks great too.

Cheers

Jamie

Hi Jade

It’s a frustrating situation but not that uncommon. That’s why good PM’s are gold.

Simple solution is to provide your written notice and contact a couple more management companies so you have someone lined up to take on the property once the agreement expires with the current PM.

If you start a new post asking for recommendations for PM’s in your area, you might get some details.

Cheers

Jamie

Hello

Purchasing a PPOR and using the equity to fund the deposit/costs on an IP is a good strategy – and one that a fair few of my clients adopt. Here’s an article I wrote on the strategy.

If set up correctly, it doesn’t need to involve cross collaterisation at all. You just need to set up a separate loan split which will be used to cover the deposit/costs on your IP and then a third loan to cover the remaining balance against your IP.

So it will look something like this:

PPOR
Loan 1: PPOR loan
Loan 2: Equity release to cover deposit/costs on IP

IP
Loan 3: Remaining balance needed for IP

For your second IP purchase, you could look to either release equity again against your PPOR or your first IP – it just depends on where it’s available.

You may also have some cash you’re willing to use for another purchase. In that instance, we’d look to inject those funds into your PPOR loan and “reborrow” them to make them deductible. But I don’t want to overwhelm you just yet :-) We can save that for another day.

My advice is to set yourself up with a good team – that usually involves a good finance person, accountant and legal person. That way, you can worry about finding properties while they worry about the finance/structure.

Hope that helps.

Cheers

Jamie

It’s usually quite easy to mitigate. Just extend the IO term or refinance to another lender.

Cheers

Jamie

Hi Kieth

Welcome aboard :-)

It’s a very broad concept. Some would consider the outer Western parts of Syd to have a lower socioeconomic standing but values of properties have risen dramatically in the last 12 months or so.

There are opportunities everywhere – it’s all about what fits in with your own strategy.

Cheers

Jamie

Good question yo :-)

I’m not an accountant so seek pro advice. My thought would be that if you’re not living in it – and it’s being rented out at market value, that you should be able to claim interest and other costs.

Best talk to an accountant though.

Nice avatar BTW :-)

Cheers

Jamie

MelbPropertyOwner wrote:

Is offset account the same as redraw in terms of If I go interest only loan but continue to pay extra into redraw,  it is same as offset? I ask as my current bank has no offset and to date I’ve been using redraw acct in this fashion.

They’re VERY different.

Redraw is classed as “new borrowings” and if you’ve redrawn funds for personal use, you may have contaminated your loan and might not be able to claim any interest.

An offset is a transaction account – and moving money in/out doesn’t have the same taxation implications.

Sounds like you need to move onto another lender (and I hope your current bank didn’t tell you that redraw was the same as an offset).

Cheers

Jamie