Hi steve

Welcome aboard

What do they do? How are they paid? How do you benefit?

Cheers

Jamie

The Dark Knight wrote:

I recently had a tenant complain to my property manager that the lounge room light was too bright. Hopefully your tenants are more civilised than mine

Ahhh geeze. They sound like a handful!

Post them out a light bulb.

Cheers

Jamie

Hi there

I was talking more about someone purchasing their first property (home or investment) and using borrowed money to get it done. In that instance, I don't think it's a good idea because it's unlikely they've experienced meeting the repayments on a large liability before.

Cheers

Jamie

Hiya

Part time is usually fine – it's casual employment that can cause probs.

Cheers

Jamie

Hi Niccy

It looks like you'll only be able to claim $4k in deductions. The $100k you've redrawn has been used to purchase a property to live in – therefore, it wouldn't be deductible.

I'm not an accountant though – just a number crunching finance nerd.

Cheers

Jamie

Brisbane has been hot for a while. Check out all the posts about it on this forum and others.

Cheers

Jamie

LMI isn't necessarily a bad thing if used in the right situations. It can actually be quite a handy tool when buying a few IPs.

Cheers

Jamie

Hiya

Welcome aboard.

Different banks have different ways of assessing max borrowing. For that reason, those online calculators aren't very helpful.

For instance, some banks will inflate the repayments on your IP – which will reduce your borrowing capacity.

Some will take the repayments at what they actually are – which helps.

Some banks take 75% – 80% or rental income whereas another may take 100%

There are so many different variables that go into working out max borrowing.

Cheers

Jamie

Hi SZ

Do you have anyone in Australia that could provide some recommendations for you?

Why not get a couple of recommendations from both the broker and the BA on various allied professionals such as property managers, solicitors, etc and then speak with a few to get an idea of what they offer.

Do some due diligence online – perhaps ask if anyone on this forum has used any of the recommended companies.

All in all – if the PM doesn't work out, you can get a new one. The solicitor/conveyancer should have a very defined role (providing it's a straight forward purchase). 

I can't speak for the companies you're dealing with – but personally, I'm only going to refer my clients to businesses that I know will do a good job. Otherwise, it reflects badly on me. I can only assume your broker/BA are doing the same.

Cheers

Jamie

Hiya Ferdinand 

Is the deposit for the IP coming from savings or equity? 

If savings, there's better ways to approach it. One way is by injecting the savings into the PPOR loan and reborrowing as a separate loan. This will maximise the tax deductions against your IP.

If equity, it's important that the loans are not cross collaterised. You need to set up a second loan against the PPOR which will fund the deposit/costs on your IP. You then set up a third loan to cover the remaining balance for the IP.

Cheers

Jamie