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  • Profile photo of markymarkomarkymarko
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    @markymarko
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    February 28, 2011 - 11:31 am

    Hey 4jojo

    I have been lucky so far my friend. My Bank valuation came up at contract price for my NRAS property which from what I have heard is RARE. As Alister indicates a lot come up short. My fortune may not have been all luck though. I read a lot on NRAS so I went in with eyes wide open. I am just a beginner to property investing so I took the advice of some people I found were knowledgeable.

    The general message I followed was to treat NRAS like any other Investment property. Do you homework, know the population growth forcasts , economic drivers and the market you are targeting. Know what price is good for the area, future and existing infustructure and just as important your investment plans. Remember NRAS is designed to be a long term ( as most residential property is) investment as the incentives are spread over 10 years.

    I looked for quite a while before I found NRAS that was in a High Capital growth area and was at a reasonable price. The banks valuation was great news for me as it means I didn't overpay especially knowing Banks are valuing very conservatively at the moment.  Its just a shame most banks don't account  the NRAS incentive when formulating serviceability for  a construction loan.  I ended up getting an 80% LVR with LMI. Banks are becoming increasingly more NRAS friendly but are far from loose with their lending criteria. Most NRAS will be close to CF neutral or even positive with no money down depending on your taxable income.

    As I said I am no expert but glad to share my mistakes and triumphs. 

    Profile photo of markymarkomarkymarko
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    January 23, 2011 - 9:33 pm

    I run into a slight hiccup on Friday. My Broker rang and said Suncorp's policy  will only account half of my commission to service the NRAS loan and because 50% of my salary is commission it means I fall short for serviceability. St George has pre approved 70% LVR and we are going for the remainder with my existing bank Suncorp.

     My broker says we might have to refinance with another lender or extend my Suncorp LOC which currently is 100k (unused) He also said we could try for 90% LVR with LMI @ St George. I will cross my fingers and hope the wind is blowing in the right direction.

    Cheers

    Profile photo of markymarkomarkymarko
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    January 20, 2011 - 12:12 pm

    I would just like to say thanks to euro and Richard for your help.

    Cheers

    Profile photo of markymarkomarkymarko
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    January 4, 2011 - 5:13 am

    Around how much would it cost to set up a unit trust?

    Profile photo of markymarkomarkymarko
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    January 4, 2011 - 3:51 am

    Thanks Omega

    Can you negitively gear within the trust? How would it work with claiming depreciation and interest as the property is brand new and tax claims contribute significantly @ 38cents in the dollar which is my marginal rate.

    Profile photo of markymarkomarkymarko
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    January 3, 2011 - 9:40 pm

    I am putting the property under my name for the above reasons, thanks guy's! So, is there any future pros or cons to putting the loan under both me and my wife's name, my name or just her name???? I want to safely expand my portfolio as quickly as possible and I want the loan structure correct in the beginning so there no headaches latter on down the track.

    Cheers

    Profile photo of markymarkomarkymarko
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    December 19, 2010 - 7:36 pm

    Thank you guys, that's a great help. Catalyst, yes that right it's CF+ only if I factor in Tax benefits.

    Profile photo of markymarkomarkymarko
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    November 15, 2010 - 11:01 am

    I need some opinions and maybe some local insight . I am tossing up between Gladstone and Calliope (20 min SE of Gladstone) for building a new 4 bdrm IP. No one has a crystal ball but looking at the fundamentals , would there be a significant difference in capital growth between them once Gladstone starts moving?

    I have talked with someone from up that way and as I understand it Calliope is close enough for workers of the new  Gladstone Projects to commute too. Another person told me it was a nice alternative to Gladstone for people that want a more country feel.

    Population Around 1650 and only 5 rentals available currently, 5% rental yield, bigger cheaper blocks. 

    Profile photo of markymarkomarkymarko
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    June 28, 2010 - 10:18 pm

    Mr 501
    Thanks, I probably wont be buying and selling in the same time frame.

    It could be 3 to 4 months between selling and buying the new PPOR. You mentioned to pay out the old loan ie LOC from the new loan, is that still possible in my position?

    Arh, do you mean I get out a separate IO loan to pay out my LOC when I sell my PPOR?

    Profile photo of markymarkomarkymarko
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    May 16, 2010 - 9:04 am

    If anyone has any SOLID evidence relating to the Banks attitude/policies towards financing NRAS properties in their current  "straight freehold structure" I would be most appreciative. Are the Banks up to date with these changes? Has anyone just gone through the process recently? Why would a sellers agent be cloaking "side agreements" into contacts if  financing such properties is apparently no longer an issue?

    Profile photo of markymarkomarkymarko
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    November 11, 2009 - 10:11 am

    Thanks for the report Mike, your truly a great Bloke!

    Profile photo of markymarkomarkymarko
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    October 7, 2009 - 12:15 pm

    Try BMT Quantity Surveyors, a little more expensive but they will get the maximum deductions and an ATO friendly tax return.

    http://www.bmtqs.com.au

    Profile photo of markymarkomarkymarko
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    September 5, 2009 - 10:46 pm

    Sootyss, thanks heaps for your tips there.  I understand where you are coming from. I too have been lead up the garden path and might have lost my house if I would have follow the "highly leveraged advice". Destiny is having a launch seminar on a new product coming up very soon so I will go along and hear what they have to say.

     I agree with you that educating yourself is a vital tool to making a quality decision with your investment dollars as it's not just hundreds of dollars, it's hundred's of thousands. I have to be careful also not to fall into the trap of "analysis paralysis" this is where I need a little guidance because I tend to fill my head up with all this data but not take action. A clear action plan is the way to go from here for me.

     Once again, thanks I will follow up on those tips and check out Real Estate Success now.

    Profile photo of markymarkomarkymarko
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    September 4, 2009 - 9:54 am

    Locky, I like your lateral thinking. This is what I came to this forum for! That is worth thinking about for sure. I am starting to think it might be better if I look after my own investment. I am fine with paying someone to advise me as long as they have no vested intrest in a particular product that can compromise potential capital growth.

    The $15 per week to me seems like another form of security that ensures cash flow. I see that dropping the price of the rent would do almost the same thing.

    Thanks heaps for your opinion. It really helps us newby's

    Profile photo of markymarkomarkymarko
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    September 4, 2009 - 5:04 am

    Thanks heaps Scott, I dont believe you have no mates. I will have a good look at Ironfish for sure. Anyone else recommend one of these companies and why?

    Profile photo of markymarkomarkymarko
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    September 3, 2009 - 12:45 pm

    Cum on people!  Help 

     Pretty Please, can anyone (that doesnt work or is affiliated with OZINVEST) give us some feedback on this company. I am a first timer to property investing and interested in doing some research on companies I am considering before commiting the $$$$$$$

    Anyone have other suggestions for companies that are ethical, reliable,  and would suite someone like me who has only modest amount of time I can spend researching the market. I am also looking at Metropole and Destiny Financial Solutions

Viewing 16 posts - 1 through 16 (of 16 total)