Are you sure no-one will touch you in Aus? Imperfect credit isn’t the end of the world – some lenders will still provide finance if your credit record isn’t perfect. There even some lenders who will provide finance for discharged bankrupts from day 1.

Make an offer with (ideally 14-21 day) finance clause which will give you time to seek finance and hopefully gain approval.

You would never get full unconditional approval without a contract of sale – a pre-approval just helps knowing that the lender *might* give you finance but it’s never 100% certain until all their boxes have been ticked.

Not automatically, no. It certainly contributes towards your serviceability but doesn’t mean that if a property is CF+ automatically qualifies you for the next IP.

From memory, the last time I did some modelling as to what gross yield you need to start contributing towards serviceability it was ~9.5% so would need at least that yield and then…[Read more]

Same here, clients all over. Skype, email, phone, text message, in person – whatever suits the client with their preferred communication method.

Think average loan size too per location – Sydney’s average would be a lot higher than Adelaide’s.

Hi Kerky, can’t really recommend any reading material sorry.

How I work it is define my end goal so, for argument’s sake, that might be an income of $100kp/a from investments – what will I need to get there? Through the power of compounding over the years what avg yield and CG will I need to get there? LVR, portfolio size?

This is only a very…[Read more]

Hi Kerky, it’s a very fine line between not acting due to analysis paralysis or acting just for the sake of it. As I’m sure you’re aware, a good decision needs to be made! But it looks like you’re taking the right steps.

Looking at your figures it seems you want to keep your LVR around the 80% mark? Have you thought about venturing into LMI…[Read more]

After.

If you wish, make your offer subject to a building and pest inspection if it’s not already in the contract.

Why Latrobe or Bluestone? Having those as the options leads me to think there’s something out of the ordinary with your daughter’s situation such as adverse credit.

Only from the other side.

When I worked in lending for one of the banks I would often see people with these kinds of loans. They’d get stuck in a trap with them – not even living week to week but living one week in advance. Something would happen, they’d borrow the money with circa 30-40% interest rates and use their money to repay the loan but…[Read more]

I would avoid the seminars as there’s usually a hidden agenda and the information can be very biased.

I find the greatest source of information to be the forums, this and the other one. Plenty of posters asking great questions and experts answering them.

I’d also recommend surrounding yourself by like minded people and those who have ‘been…[Read more]

Sorry to hear about your situation – it’s a tricky one.

I also live in Trinity Park and have seen your property on and off the market for a little while. First up – any reason you picked an agent from Redlynch to sell the property? I’ve wondered this as I drive down Reed Rd what would motivate someone to chose an agent from Redlynch.

Being in a…[Read more]

The majority of the time the bank val will come back at the contract price for a purchase. If it were to come in higher (or lower) the bank would take whatever is the lowest.

RE using the real estate investar to dispute val – in a word, no. After settlement you could request a full val but unlikely it will change too much unless you do something…[Read more]

To echo Jacqui – I’d be concerned about having all lending and assets with one bank. Eggs and baskets come to mind.

In this particular scenario you are the one with the power with the substantial lending amount. In saying that though, I received an email from CBA this morning saying “We have also reduced pricing discounts for Investment Home…[Read more]

Is there a reason why there’s not been much CG in the past? Is there or will there be anything happening in that suburb to help with future capital growth? Any infrastructure investments or developments?

Ha, all good. I actually wrote this one first in response to your post then thought I may as well post it in the other forum that shall remain nameless ;)

Hi Bangers, just saw this sorry.

Not really unfortunately. The afternoon tea was pretty much 2 hrs of fluff going over what has been done already with nothing new said.

A summary of the notes I wrote:

Total size is 340ha. There will be a 33ha artificial lake and a 40ha ‘island’ that will be the main resort/casino area. The whole development…[Read more]

Then I will be ditching my $5000/year policy (is this normal!!!?)

Yes and no…. When I first bought my PPOR here I was hard pressed finding insurance for under $10kp/a (in a red flood zone) and was almost a deal breaker. I was then able to get building and LL insurance with EBM first of all as was going to be IP and insurance was about…[Read more]

Ha, if only! There’s been a bit of movement and action but probably not long enough for it to start noticeably impacting prices!

Sorry to hear about your house getting trashed. Hopefully you had insurance which then paid for a cosmetic reno. Was the bank val done recently?

Good news about the Mr Gravatt place though. And congrats on the new…[Read more]

To add to Terry’s post too, which I forgot to put in mine is the lending of cash behind the scenes. I have one client at the moment who is looking into JV’s for small scale developments and one scenario that is being entertained is that the cash partner of the deal lends the money to the JV/serviceability partner and all lending in done in their…[Read more]

Have a chat to your accountant but from what I understand it can be apportioned.

Take into consideration though the wider implications such as impact on CGT exemption for your PPOR, insurances, having a boarder vs tenant as well as other things.