Howdy,

This is unfortunately fairly common in regional communities. The first thing I would be doing is find out who the approved valuers are for the lender that you are going with (brokers can do this for you if the bank is less than forthcoming) and get a second valuation because on the numbers you’ve provided this seems like a tough call.…[Read more]

Hi,

A client and fellow formite is investing successfully in that area at the moment, email me if you’d like his contact details.

It has a lot going for it, but the usual concerns about good and bad areas and lack of capital growth from what I understand.

Happy investing!

[]
Mel
melanie@homeloanconnexion.com.au

Hi Damon,

For starters I would be going to see another financial planner – I know a few good ones in Brisbane, if you’d like their details email me at the address below.

For seconds neither shares nor property are homogenous markets ie plenty of people loose money on the stockmarket when the index’s are rising (eg NAB!) and plenty loose money on…[Read more]

Hi,

If it is a business with a property then 70% LVR at about 7.5-8% should be attainable, but as UraneHan says, they’ll be quite nosey about the business’ financials.

[]
Mel
melanie@homeloanconnexion.com.au

Hi,

Bank of Qld has some very good interest rates around 6.82% variable and around 6.89% fixed for three years.

As a broker and ink & paper conservationist I LUV low docs, but they require a lot more homework than your average loan. Beware that there are big variations in level of flexibility, acceptable security (many won’t do PPOR’s),…[Read more]

Hi,

Some loan stats I got recently which show whats happened recently:

Average over 2003 – 9% of all loans were fixed
December 2003 – 15% of all loans were fixed

I was surprised that fixed loans are such a small portion of the total, but it’s consistent with my client base’s activities. Even though it appears there was a bit of a panic in…[Read more]

Hi,

I know the lady who is running this programme and I have to say she is the real deal – an experienced and very successful property investor. Compared to what other educators are offering I think it’d be money very well spent.

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Mel
melanie@homeloanconnexion.com.au

My understanding is that you lose the CGT exemption equivalent to the portion you claim as income producing – in your example 50% will be CGT exempt as per the PPOR rules and 50% wouldn’t be as per the investment property rules.

Mel
melanie@homeloanconnexion.com.au

Interesting site and interesting article, thanks.

I think Mr T is clever enough to personally keep out of trouble but the domino effect for the banks of some of these large complexes are that if they are devaluing due to large no.’s being sold simultaneously and hence cheaply then their security is devalued and any investors or unit trust groups…[Read more]

Hi dougdot,

Some lenders will want to see that you will have >70% equity in your PPOR at age 65, but provided you have sufficient superannuation funds or possibly verifiable income from the property (never tested that one myself) then you may be able to waive this requirement.

Good luck – my partner and I dream of owning a little orchard…[Read more]

[^] Merry Christmas

Absolutely you can pay him and claim it as an expense – just make sure you have a record eg an internet BPAY record, cash receipt etc as no evidence doesn’t wash with the taxman.

Have a fab Xmas,

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Mel
melanie@homeloanconnexion.com.au

Hi Matt,

As a borker, I think your example shows why it is important to go to a broker in the first place!

Kay – regarding financial institution – which one? Several of the larger Credit Unions flirt with broker introduced loans so I’m guessing it’s one of them.

Like any profession there are good and bad operators but I personally think it’s a…[Read more]

Hi,

From what I’ve seen valuers are human and WILL value a house higher if it looks well cared for without half-done repair jobs everywhere – unless it’s in the middle of a SHORT renovation period of course. Bad/messy tenants are the worst. Valuers are pitching the price at what they think it would sell for in less than 3 months.

Having a bare…[Read more]

Sounds like a lovely ambition Martin.

I wish I did know how to help, but have you tried any of the big groups like Community Aid Abroad or AusAid to see whether they could direct you?

Good luck & Merry Christmas!

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Mel
melanie@homeloanconnexion.com.au

Hi Boo Boo,

I’d start ringing around to commercial real estate agents too eg Ray White Commercial, Frank Knight etc as this won’t be a straight residential property and most RE Agents won’t attempt to sell it.

Lending as a residential purchase will be tricky too – St George may do it along with a few others but all at fairly low LVR’s.

Good…[Read more]

Hi Ben,

Agree with Simon – lenders are all different, but for a quick check I would get onto the CBA and Westpac web sites and add 70% of gross rental income to your other income in the input screens. These two banks have fairly lenient servicing criteria and this will at least show you whether you are in the ballgame or not.

Also – get thee to…[Read more]

Hmm – did not know that, very int.

Welcome aboard Rodders – that was a crack-up, in a twisted cynical kind of way! Sounds like you’re in the right place and I’m sure can answer heaps of questions about all the other stuff that goes with investing.

SMTM – where do you live? I know someone in SE QLD who would be able to advise…[Read more]

Hi,

This sounds like a very do-able proposition.

Some advise from another broker for straight buy and hold option (although I like some of the suggestions above too!) – find a lender who would look at this deal, I know a few but they are rare, then pay approx $750 to get their approved valuers to do a valuation before proceeding with anything…[Read more]

You forgot the ‘credit rating destroyed and no lender willing to look at you again for less than about 3% above standard rates’ bit []… if anyone is ever in this situation, sell or move out and rent to keep from mortagee in possession phase.

If you’re about to encounter problems eg due to an unexpected pregnancy, pending job loss etc it pays to…[Read more]

“Positive Cash Flow” is an advertising catch-cry which often doesn’t stack up or has a lousy Cash on Cash return – saw an example in Steve’s course where a high profile ocean front apartment was about $100 per month positive cash flow providing you were able to foot the full $500K + purchase price cash AND get $1,500 per week rent ….. um, I…[Read more]