Hi Meggy

Welcome aboard

Without knowing too much about your situation it's impossible to advise on an ideal structure for your circumstances.

However, as a generalisation – having a trust set up for each property does sound a little like overkill.

Cheers

Jamie

Hi Scott

9 years is a very long time – and it's hard to accurately plan ahead.

DHA leases can seem like a good idea for those starting out and worried about potential rental vacancies. However, a long lease like this can be very prohibitive for the owner. The biggest issue is that if you need to sell up – your restricting your pool of buyers (because you'll probably need to uphold the lease). Secondly, not all lenders like them – some won't lend above 80% Lastly, the management fees can be quite high.

All in all, there's pros and cons – you just need to weigh them up in terms of your longer term plans.

Cheers

Jamie

Hi Joe

Welcome aboard.

On the surface your borrowing capacity and available equity looks fine. With the right structure you could potentially purchase multiple IPs.

Whether you should or not depends on your long term plans and what you're aiming to achieve. Your tolerance to risk also plays a part.

Cheers

Jamie

Hi Dan

You need to have some sort of formal lease agreement in place in order to use the IP rent as income. You could get by on using a rental appraisal from a local property manager –  but it would need to be appraised as a normal rental and not a share house. 

Having you on the application is likely to reduce the overall borrowing capacity as your annual income of $10k is less than what the banks believe it costs for an individual to meet a minimum standard of living.

I haven't crunched the numbers but your partners income would certainly help. Whether or not you'd want to involve all parties in the transaction is another story.

How much are you looking to spend on the next IP and how much rent do you think it will receive?

Whatever you do, don't submit any more applications until you're reasonably certain of receiving a good outcome.

Cheers

Jamie

Hi Kane

Welcome to the forum.

Firstly, I wouldn't use tax reduction as the main driver for buying an investment property. Reducing your tax bill means spending a $1 to get back 40 cents. The tax incentives with property investing are great – but should only been as a bonus and not the main motivator.

Instead, look for a property that fits into your longer term plans. It could be something that you could renovate/develop, something that you believe will experience decent capital growth, cash-flow or a combination of the two. This isn't an exhuastive list – there's plenty of other reasons why investors purchase particular properties.

On a separate note – have you considered doing both? Buying a PPOR and an IP? I wrote this article for Australian Property Investor mag on this topic. Here's the link.

Cheers

Jamie

A mortgage broker would be a good start. Most of don't charge a fee for service – we get paid a commission from the bank instead.

If you're comfortable with using phone/email than you can choose your broker from anywhere in the country.

An accountant/solicitor will advise on the entity type to purchase in.

Cheers

Jamie

Hi PCF

Welcome aboard.

With loan structuring you want to ensure that your properties aren't cross collaterised (something that banks love to do) and you select the right lenders at the right time as you continue to accumulate investments so you don't burn your borrowing capacity too soon.

Without sounding biased – you should consult with a decent finance person that has experience in this area so you can worry about locating properties while they sort out the finance structure.

Cheers

Jamie

Hi Seb

You can get vacancy rate data from any of the national IP magazines. Most of it is featured in the back of the mags.

Cheers

Jamie

Hi J

Welcome aboard.

The right structure comes down to your long term plans. If you were my client – I would have discussed setting up everything as interest only and parking your spare cash in an offset attached to one of the properties. I also would have avoiding crossing up the properties.

Given that you've got two loans with WBC – I'd more than likely have you set up with the prem advantage so you can take advantage of a rate discount and offset account.

Cheers

Jamie

Hi Saz

Which city are you in? You might be able to get some recommendations for a decent accountant here. That's not to say that you need to be in the same location as your accountant though – if you're comfortable with phone/email you can choose your accountant from anywhere.

Cheers

Jamie