Hi there

It won't effect the valuation. However, the valuer will declare what they believe the market rent for the property should be which could come into play if it seems that the rent you're receiving is way over market.

Cheers

Jamie

You might be able to apportion the fee since there's also a PPOR loan in the mix. Mention it to your accountant and see what they say.

Cheers

Jamie

Yeah it's a bummer. I bet FHB's kept you nice and busy during the last couple of weeks

Cheers

Jamie

Servicing sounds very tight – and just because a bank will provide the money doesn't necessarily mean you can afford it.

Look at your household budget and list all your expenses down to the dollar – from there, you can work out how much you can put aside for mortgage repayments.

When calculating your mortgage repayments – use a higher rate (say 2% higher) to account for any interest rate increases in the future.

Cheers

Jamie

Hi Donna

Only you can make the final decision. Sounds like you've done your due diligence – and for what it's worth, that kind of body corp fee isn't unusual.

However, if you're having doubts and/or will struggle to sleep at night then don't jump into it. It won't be the last property to go up for sale.

Cheers

Jamie

A bigger loan means bigger repayments

Cheers

Jamie

Hi Sparnar

Sorry – are you living and investing in Australia or are you living and investing in South Africa?

I read the post as if you were a South African who's living and wanting to invest in Australia. 

If the latter- disregard what I've said – I don't know the finer details of South African property financing. The Aus market keeps me busy enough

Cheers

Jamie

Hi Trent

The structure doesn't sound too good.

Redrawing from the now IP loan to purchase the new PPOR could have tax deductibility ramifications.

Basically, the only funds that would be deductible is the original loan securing your now IP before you redrew those funds.

By redrawing those funds you've mixed up deductible and non deductible debt.

Ideally, it should have been set up like this:

IP

Loan 1: Original loan securing the IP 

Loan 2: Funds to cover the deposit/costs on your new PPOR (this is what you've redrawn – it should have been set up as a separate loan)

PPOR

Loan 1: Balance of funds to make up the difference between the purchase price of the PPOR and the deposit used from loan 2 above.

With this structure, you've avoiding cross collaterising your properties and you're able to distinguish deductible debt (loan 1) from non-deductible debt (loans 2 and 3).

Hope that makes sense.

Cheers

Jamie

I don't know if it's because I'm from Canberra where everything is expensive but $2k doesn't seem too unreasonable for that amount of work – looks like there was a fair bit of painting involved. I received a quote from a local painter for a relatively small area of a Canberra IP and it was more than $2k for that job alone.

Cheers

Jamie

No worries at all. It's come in handy for me a few times when self managing.

Enjoy.

Jamie