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  • Profile photo of KRH83KRH83
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    @krh83
    Join Date: 2008
    Post Count: 47
    July 26, 2012 - 1:43 am

    Yeh richard, we lived there for a little while 6 years ago so hopefully we know the area well enough to avoid the undesirable parts!

    We were most likely going to use a buyers agent since we will be long distance buyer – can anyone recommend a reputable BA in Brisbane?

    Thanks,
    K

    Profile photo of KRH83KRH83
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    @krh83
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    July 24, 2012 - 11:58 am

    Hi richard, we’re thinking of around the Keperra/everton park area which is quite affordable- my parents are in Mitchelton. Just a quick look on realestate.com there are quite a few suitable properties.
    What details in particular would help to make a more accurate assessment?

    K

    Profile photo of KRH83KRH83
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    @krh83
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    July 24, 2012 - 11:52 am

    thanks for your input guys! Its given me the drive to contact the mortgage broker tomorrow!

    Our borrowing capacity was calculated to be appx $480K on just an online bank calculator so i’d need to confirm this with the broker. The previous purchases have given me confidence that we can manage high LVRs particularly with secure jobs and i’m comfortable with debt, especially when its a worthwhile investment. and as you said, if we hold on to our cash, we will have that to service the loans.

    Am i right in thinking equity wise we can access $55k from IP#1 and $25K from IP#2 (with 90% LVR)? And i’ll convert the mortgage for IP#2 to a LOC aswell?

    Cheers,
    K

    Profile photo of KRH83KRH83
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    @krh83
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    February 3, 2010 - 9:55 am

    Hi Richard,
    i just realised that i had my figures wrong and the property was actually valued at $350,000 (damn those overly conservative valuations!!) and the LOC was to be increased to 90% LVR. I guess this is what makes the LMI un-capitalisable??

    So I'm now thinking of putting less of my own cash down on the second mortagage and just pay the LMI upfront in order to stick with the LOC and avoid cross collateralising. After all, the LMI is technically capitalised – just on the other mortgage by way of increased required borrowings.

    So the numbers would be:
    Loan #1
    Valued at $350K
    Loan amount increased to 90% LVR = $315K
    Current balance of loan = $291K
    Available for withdrawal through LOC = $24K
    LMI to pay upfront = $6K

    Loan #2
    Purchase price = $369K
    plus costs = $383K
    minus cash deposit of 34K ($40K-$6K for LMI Loan #1) = $349K
    minus LOC $24K = $325K
    = 88% LVR
    = LMI of $5K (capitalised)

    Does this sound like the best way to go?
    Regards,
    K

    Profile photo of KRH83KRH83
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    February 2, 2010 - 4:44 am

    Thanks Richard, I'll look into it further. So should i try and avoid the other option she's suggesting with the existing loan?

    Profile photo of KRH83KRH83
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    @krh83
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    February 2, 2010 - 4:16 am

    Just spoke to the Mortgage broker and she said that its common for them not to allow this with LOCs -we are with newcastle permanent. Should we go ahead and increase the existing loan? she assures me that they will still be kept separate and that only if i didnt increase the loan, that it would be cross collateralised…. I'm so confused!

    Profile photo of KRH83KRH83
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    November 21, 2009 - 10:04 pm

    Hi L.A,
    The loan is a full doc loan and we are looking at increasing the loan to 90% LVR. Do you think we should try another lender?

    Profile photo of KRH83KRH83
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    @krh83
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    November 20, 2009 - 9:25 pm

    Thanks Sue, would the conveyancer that carried out the settlement be able to help me out with that or would it have to be a solicitor?

    Mattnz, the issue is actually the documented address because the insurer didn't accept comparible sales figures for a unit in the same position as mine on the main road (one level above our unit) because they were listed on the databases as mansfield ave – not the kingsway. It seems that they just saw 'the kingsway' on the forms and didn't accept anything without that same street name.

    Cheers,

    KRH

    Profile photo of KRH83KRH83
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    November 19, 2009 - 10:54 am

    Thanks a lot for that link scott no mates! That will be a great help.

    Cheers,
    KRH

    Profile photo of KRH83KRH83
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    October 9, 2009 - 8:25 am

    Hi Natalie,

    yeah i think i'd definitely need to go for one with a car space. Thanks for your input, it all helps get everything into perspective! I'm just worried about the high strata fees for these apartments but i guess if the rental income is high enough, it will cover the strata fees and hopefully still present good cashflow.

    Profile photo of KRH83KRH83
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    October 8, 2009 - 4:50 am

    I finally went for a drive around the parramatta area today – i was quite surprised actually! Only stumbled upon a few dodgy streets but there were some nice wide tree lined streets. Leaning towards buying a house or townhouse though – seems to be a lot of units so not much scarcity –  
    Any opinions?

    Profile photo of KRH83KRH83
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    @krh83
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    October 6, 2009 - 8:42 am

    I have never been to Parramatta but i'm starting to seriously look into purchasing a property there – purely based on the figures and future potential. 

    Does anyone know which are the better streets/areas and which ones to steer clear off?? 

    What is the crime rate like around these suburbs these days?

    Cheers, 
    K 

    Profile photo of KRH83KRH83
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    September 24, 2009 - 5:44 am

    Hi Vinod,

    i'm not an expert but when i saw my accountant about purchasing my second IP, he informed me that the LMI can attract a tax benefit but over a certain time period. i think he called it annualised?? i haven't got all the terms down yet!

    Profile photo of KRH83KRH83
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    @krh83
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    September 17, 2009 - 6:26 am

    How did you go with the buyer's agent Mark?

    I'm looking at using Liz at the Hot Property Specialists, as recommended by another forum member. I haven't registered with them yet but i have been happy so far with Liz's prompt replies to my frequent pesky property enquiries!

    Profile photo of KRH83KRH83
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    September 16, 2009 - 11:27 am

    I lived in Mitchelton with my parents for a few years while at uni. Not much of a 'village' vibe yet but it definetly has potential. close to train lline and brookside shopping centre, blackwood st is the main cafe strip (only 1-2 cafes though). a lot of land is being released on the west side at the base of the hill – my parents have just sold their house in taltarni cct and are building in the newer area at the moment. there was pretty good capital growth in that time IMHO. its a good area for the kids to ride their bikes around too – only a few small hills!

    Profile photo of KRH83KRH83
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    September 16, 2009 - 11:05 am

    Hi Richard, just wondering were they units you purchased in Bowen hills and Albion?

    Profile photo of KRH83KRH83
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    September 16, 2009 - 10:03 am

    I was thinking along those lines too for our next IP- anyone have suggestions on the up and coming suburbs and for potential +CF?

    Kyla

    Profile photo of KRH83KRH83
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    September 14, 2009 - 2:30 am

    Thought so,

    thanks guys!

    Profile photo of KRH83KRH83
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    August 30, 2009 - 11:09 am

    ok i understand. Yet another pearl of wisdom! cheers!

    Profile photo of KRH83KRH83
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    August 30, 2009 - 5:13 am

    Ok so because you didnt use a separate LOC to buy the shares which were then shifted to super, the whole LOC amount (400K) was classified as a private (non deductible) debt?? That sucks!

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