Forum Replies Created
Prob the same as last time – no movement.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Talk to your accountant but I can't see why you couldn't claim IP related expenses during the period that it is an investment. At the same time, you'd assume that there would be CGT implications for the period that it's an IP – but it's highly unlikely that the property going to change in value in a few weeks.
In any case, it's something to discuss with your accountant.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I'm with Derek.
Plus there's way too many cowboys out there these days spruiking to be property coaches/mentors/strategists – you name it.
If you do go down this path – then word of mouth recommendations would be a good start. Do you know of anyone that's had a succesful outcome from using one of these services?
There's so much free information in the realm of property investing – anyone with the time, dedication and ability to learn can become clued up. Forums like this are a good start – there's also heaps of books on the various strategies investors adopt.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Not sure if I'd be setting up a LOC to secure an entire IP – it's an expensive option. For a smaller equity release possibly – to secure an entire property, no.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
minds-eye wrote:Thanks Jamie,When you make an offer on a property and provide the seller with a 10% deposit, do you "borrow" the entire property value (i.e. 400K) from the bank. Have it sitting in your account, then you make a withdrawal of 40K and give it to the seller for deposit?
Then in 6 weeks or so after settlement you transfer the remaining amount?
No worries.
Nope – not like that.
There's a couple of main ways to fund a deposit – the first being with cash and the second from equity from another property (borrowed funds).
With equity, you need to arrange the equity release beforehand so the funds are available to you when signing the contract.
For arguments sake, let's say you were purchasing a $100k IP.
You use an existing property to access $25k in equity which covers the 20% deposit and costs.
You then set up the remaining $80k loan separately – and those funds are available on the day of settlement.
Make sense?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Word of mouth.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Tom
Personally – if it were me, I'd either buy your partner out and own the property yourself or sell up, split the proceeds and start again.
Agree with Terry – I wouldn't want to guarantee anyone else's loan.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
minds-eye wrote:Hi Jamie.Thanks for your reply. But it wasn't the figure amount that I was questioning.
Why 90% finance? Would you not give the seller a lump sum of the full amount?
If you are referring to a 10% deposit. Would you give this out of your own pocket? and then give the bank another 20% deposit on the remaining amount?
Seems like a lot of deposits going around. Best to keep a chunk of cash handy!
Nope – you never give the seller the full amount on offer. You normally exchange on a 5% or 10% deposit and then the balance is paid upon settlement of the property.
If the purchase is an IP, it's ideal to use "borrowed" funds rather than cash for the deposit (if possible).
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Sebastian
That's actually a pretty nifty website – thanks for sharing.
The ABS website is an obvious one – but something tells me that this won't be news to you….so it prob won't receive a squeal of delight.
I wonder if it would be possible to download an entire dataset of every town in the country by population….
Most towns have wikipedia pages which can be handy – providing the info is accurate.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
minds-eye wrote:Hi JacM,I am at the stage where I am looking to buy my first IP.
I find it interesting that you mention 90% finance.
Can you please elaborate?
Probably best to keep it vague like "a sufficient amount for buyer to complete the purchase" rather than stipulating an amount.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
It depends Matt – if they were taken out before you applied for the mortgage then it would have a big impact. If it were done after settlement – then it won't matter unless you're wanting to take out another home loan soon after.
Whatever you do – don't over stretch yourself.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Nigel Kibel wrote:I think that Brisbane is still undervaluedYeah I agree – just had a client pick up a nice, modern detached house about 10kms or so north of the Brisbane CBD for a price that would probably be 50% higher if it was purchased in Canberra at a similar distance away from the CBD. Makes me wonder why I'm putting up with these winters each year
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Freckle wrote:Jamie M wrote:I think the old ACT still has legs – you can pick up a detached house on a decent block in the far south and north burbs for low $400s, tart them up with a cosmetic reno and rent them for high $400s per week. Long term the growth will be fine and the yields will be ok so the holding costs aren't overly burdensome.I'm a bit biased though – I've for handful of IPs here and will look to buy more soon.
Cheers
Jamie
Rumor is Abbot will do a hatchet job on the public sector. I see that as almost a certainty given the economic challenges coming our way. Abbots likely to grab the top job without too much difficulty and he'll almost certainly have little trouble from a weak opposition. Unless they blow the ship up in their first term you could see a 2 -3 term govt. Public sector RE in the ACT could be tough going for a few years if that scenario unfolds.
yep – it's the same story each election.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I think the old ACT still has legs – you can pick up a detached house on a decent block in the far south and north burbs for low $400s, tart them up with a cosmetic reno and rent them for high $400s per week. Long term the growth will be fine and the yields will be ok so the holding costs aren't overly burdensome.
I'm a bit biased though – I've for handful of IPs here and will look to buy more soon.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Off the top of the noggin – suncorp and amp don't. Not sure if I'd approach the latter with a 95% deal though.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
s0805 wrote:Jamie M wrote:adam.p wrote:Thanks Jamie. That's what I had in mind.ANZ are a bit funny – they see changes such as reverting from P&I to IO as "credit critical" so ask for a new application to be submitted. There's been moves to change this – and I've been told that these sort of adjustments can be made in branch now, but I'm still reluctant to send my clients direct to a branch to have them fiddle with their loan accounts.
Jamie
Hi Jamie,
I am in process of getting this arranged and that is what they've advised me as well, more than 1 month in waiting not getting the docs right. The process change at ANZ is a joke and time its taking as well….what are you advising your clients full application OR have they started doing this in branch now?
Cheers
A lot will come down to who lodged the application and how it was presented. Every bank has it's issues with processing – but if the application is submitted correctly from the start, there's a much better change of it all going through without too much hassle.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Limited experience is even more reason for staying away – and a property sitting vacant isn't putting money in your pocket.
Brisbane seems to be going pretty strong at the moment. It's a big place – so difficult to comment on particular areas and dwelling types but I'm seeing quite a few investors buy there at the moment (mostly detached houses though).
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
There you go – Richard already responded while I was typing and he's close to the ground there. Seems like the Gold Coast is still a dud.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
tanner892 wrote:As this is my first investment, does anyone have any major obligations against investing in an apartment in Surfers Paradise? I am aware of the abundance of apartments here and my biggest concern at this time is finding tenants, although many of them seem to be already rented out, there is still nonetheless many many apartments for sale.
Hi Tanner
Welcome aboard.
That's the reason why it's likely to be a bad investment choice. The abundance of apartments for sale doesn't help CG prospects – plus I wouldn't want an IP on my books that I thought I'd have issues renting out.
I personally wouldn't be overly keen to pick up an apartment there.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Mic
Welcome aboard.
Looks like it's difficult getting numbers together for a Hobart meet-up.
No need to worry – so much is done online these days. Forums like this bring all sorts of investors and industry professionals together – we don't all need to be in the same building to share knowledge and experiences.
Stick around – ask and answer questions where you can.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
