Hiya

It's hard to provide a detailed response without knowing the finer details of your situation.

If there's a chance that the property may become an IP down the track then it might be best to pay a bit of LMI and borrow more from the bank. That way, when it becomes an IP you'll have a larger loan to claim on and you might also be able to claim back some of the LMI costs (depending on how long you've had the loan for).

However, you also need to consider your tolerance to risk. Some people take comfort in having a lower LVR.

What are your IP plans over the next 10 years or so?

Cheers

Jamie

Excellent – sounds like a reasonable approach.

Enjoy your time in the states Please check out a lakers or clippers game at the Staples centre for me.

Cheers

Jamie

Hi Rob

All sounds pretty good to me. Only comment would be to tread carefully with renting to friends. It has to be treated like a business – which is hard to do when friends/family are in the mix.

Cheers

Jamie

That's a good point from Catalyst. A simple gesture goes a long way.

Cheers

Jamie

The LMI will differ depending on lenders and insurers.

Cheers

Jamie

Losing a grand is a pain in the bum but at least it hasn't sent you broke that's good news about the tenants too, at least you won't have to forego any rent because of it.

Cheers

Jamie

Hiya Rhettus

How bad is the damage? How expensive will it be to fix?

I doubt you'll be able to make any claim against the inspector – they have lots of fine print in those reports!

On the bright side – at least you found the problem now rather than have the tenants report it. I imagine it would be easier to fix whilst it's vacant. Secondly – you've got a builder mate which is always great

It's not always smooth sailing in the world of property investing- and if it was, then everyone would do it. Hopefully you can look back on this in a few years and laugh about it.

Cheers

Jamie

Hi guys

Not sure if it helps but I've got quite a few links on my website that might be handy http://passgo.com.au/property-data-websites.html

Cheers

Jamie

Hi there

In order to achieve a reasonable base plus commission you would have to be bringing in quite a lot of business – and that won't be proven until you've been operating for a couple of years.

It's more than likely you'll either get paid a modest salary at the start or a split of the commission for loans you write. It's like any industry – you can't expect big things straight away. 

I'll be looking to put on another person shortly – but I'm based in Canberra. 

Cheers

Jamie

Hi and welcome aboard.

I think LMI can be great – it can be used to purchase more with less. Yes it comes at a cost – but it's a deductible expenses when purchasing an IP and it means you can use more of the banks money and less of your own. Also – if the property value goes up over time, that initial LMI cost will probably be insignificant later on.

You'll need to check vacancy rates in the area. Low vacancy generally means it's a desirable place to live and/or a shortage of rentals on the market. A high vacancy rate will usually mean an oversupply of rentals and/or it's not an area people want to live in. It's easy to find vacancy rates – you can usually find them online, in the back of investment magazines and you can chat with local property managers.

To get a tenant in as quickly as possible, try and get the seller to agree to allow you to advertise the property for rent prior to settlement. That way, you might be able to line a tenant up for settlement day.

Those reports are probably residex, RP data or something similar. That info is available to anyone – usually at a price. Most real estate professionals hold a subscription for these services and provide them for free to their clients. You can also buy them directly from the companies that produce them.

Cheers

Jamie