Building isn't really an option. In the last 6 months things have changed heaps in Muswellbrook and for what I would spend building I could be negative gearing possibly a couple hundred a week. The vacancy rates have sky rocketed too so getting it rented out is a long shot. Definitely need to sell. 

Thanks for the advice guys it has been appreciated. I have a few properties to look at on Friday and I will still go through with doing so. I won't be sourcing any creative lending in the meantime though I will just let nature run it's course regarding my land and see what happens from there.

Once again this forum has proved very helpful to me.

Thanks for the advice guys it has been helpful. If I can manage to buy a property soon I will get the credit cards while I am on a higher wage then I have the option of using them on a lower income. Once the renovations are done and I pay off the cards I'll get rid of them.

Thanks for the input mate. So overall lot reconfigurations are usually cheaper? If that is the case I may chase them further.

Thanks for the advice guys ill take that into consideration in the future. So the credit card isn't too bad? What if I were to take out two cards with $15k-$20k limits each, one with interest free period (45-60 days) and 0% balance transfer (3-5 months) to fund a renovation?

Qlds007 wrote:
Sure Matt drop us a line or call if easier.

Going back to the numbers what you have to bear in mind is the acquisition costs associated with a Qld purchase.

With a 30K deposit you certainly aren't going to be buying 2 properties at the same time as the deposit and acqusition costs alone will make a significant dent in your…[Read more]

TheFinanceShop wrote:
This would not score well particularly when there is only one applicant. I would avoid a lender that does auto credit scoring. Go with a lender that will not credit score. Plenty out there. Also you need to ensure that the overall application is strong.

Which are lenders that don't credit score? And do they charge…[Read more]

Jamie M wrote:
Duplicate thread – already responded in other thread.

Cheers

Jamie

Yeah mate just a bit of a technical area on my part haha

The LVR would be around 95%, just myself as the applicant

Thats understandable Jamie, thanks for the insight. Just trying to find out as much as I can about my options so I don't make a dud move!

Thanks Jamie, yeah I would be borrowing with 5% deposit. I have been in the same field for over 2 years with a 5 month break and another 18 months really. 

What are the specifics you would need to know? It is a very hypothetical equation I know.

Qlds007 wrote:
Hi Matt

Ok if you have owned before then hate to say NO you wouldn't get the S/D concession or indeed the Building Grant.

With $30K it depends on what you are trying to achieve from your purchase / s ?

If you want to spread it across a couple of purchases then your choice of finance is quite important.

There are a couple of…[Read more]

Thanks for the comments guys. I have been doing lots of research lately and Harristown and Newtown both came up on the radar like you said being that they are very affordable with tenants ready to go. It is likely Id renovate and flip if possible for my first couple then get something a bit more solid for the rental income. Hopefully I can buy…[Read more]

Qlds007 wrote:
Hi Matt

Couple of quick points that might be worth thinking about.

1) FHOG has been and gone and has been replaced with $15K Great Start Grant. As long as you move in with 12 months and live in the property continously for 6 months you should qualify. Course assumes that you have never owned another property in Oz before (PPOR…[Read more]

taxdiva wrote:
Hi Matt39
I have been very interested reading your journey with investing and impressed you are starting so early. Wish I had started earlier. I have an IP in Brook St Muswellbrook and looking for some local opinon. The property is vacant and has been since Feb. It is a 3brm in the heart of town. What are your thoughts on the…[Read more]

Thanks for your opinions guys they are more than appreciated. JPS I think I summed this up in my comment on the other thread but I have decided to shelve the Chinchilla idea for reasons you guys have covered. This will be my first IP so something stead that is gaining equity and allowing me to move onto another project is what I need now, and…[Read more]

Shape wrote:

2. Servicing rate is based on current standard variable rate + 2% 

So are you still positive after increasing the rate to 2% and taking in gross rent of 70%?

Can you explain what you mean by that? Please forgive my ignorance

Thanks for the reply JPS and Shape your comments are appreciated.

JPS since this would be my first IP I have decided to can the Chinchilla idea for now. Seems to risky just now and I shudder at the thought I may have a house that I ultimately can't sell in a few years. I do not hope this happens to you but just your comment about houses sitting…[Read more]

Qlds007 wrote:
On a separate issue are you sure you can get a 95% lvr in Chinchilla?

Done a few deals up there and must admit off the top of my head didn't think the MI would go past 90%.

Certainly if it is Gemworth they wont be doing in interest only these days.

Course always happy to be proved wrong by 95% in a Trust structure call me old…[Read more]

Jamie M wrote:
Most lenders will take somewhere between 75% to 80% of the gross rent for servicing. Therefore, the higher the rent, the better your servicing. The only caveat being certain postcodes/areas where lenders have placed restrictions on the percentage of rent they'll consider.

Jamie

Thanks for the info Jamie. What sort of areas do…[Read more]

Qlds007 wrote:
Matt a $200 positive gearing i assume that is per month.

Are you sure it is not a Display home with a leaseback arrangement or similar and if not you must be putting in a decent sized deposit.
Are you sure you want to put that much in ?

Remember over and above the cash deductions you will also receive non cash deductions you can…[Read more]