Hi,

I have to agree with Kay’s comments – I’m sure a lot of the investors on this site have grabbed opportunities like this when they’ve found them.

As for sales data – http://www.homepriceguide.com.au gives you this info for a fee and it’s generally 2-3 months slow to be posted, or just use local knowledge starting with neighbours and RE Agents for…[Read more]

Hi,

If you got FHOG with the purchase of your PPOR because you intended it to be your PPOR and it was for a while, then you moved out and rented yourself and converted the PPOR into an IP it is fine as far as I know. You should establish the first PPOR for at least a few months before jumping out though.

Sounds like a good plan given the rent…[Read more]

Very interesting – and very blunt on his thoughts about negative gearing.

I still think Brisbane will continue rising around the 10% pa mark for the next few years, mind you I also agree with his comments about median house price being a false indicator of actual price movements given that FHO’s have dropped from almost 25% of the market 2 years…[Read more]

Yep, that’s the theory Allan.

Another tip for this process. If you move into the new PPOR when you first buy it and do ANY improvements at all eg paint job, change flooring etc then get it revalued just prior to renting it out as any capital gain you get from the improvements would be CGT free should you chose to sell down the track.

Now I’m…[Read more]

I don’t know about southern states but in the standard Qld contract the purchaser has about 2 weeks to go unconditional on the loan and up to this date may pull out subject to being unable to get finance or not liking the building and pest inspection reports. If the purchaser pulls out before the contract goes unconditional they get 100% of their…[Read more]

Hi Ghoti – where are you based? I know some good ones in SE Qld.

[]
Mel
melanie@homeloanconnexion.com.au

Rod I wouldn’t on such a comprehensive and probably professional makeover. Sad truth is there is a lot of ‘cash’ work done so personally wouldn’t put too much store in the receipts off the vendor, even if they were strangely inclined to show them to you – I’d just go straight to a quantity surveyor, they have an excellent and normally up-to-date…[Read more]

Rugbyfan, sounds like you’ve got the fanclub!

Would also really appreciate a copy if that’s okay – thanks!

[]
Mel
melanie@homeloanconnexion.com.au

Good start to the research trail – also keep in mind that sellers often only expect 80-90% of their listed price so talk to more agents, put offers out there and I’m sure you’ll jag a few good ones.

[]
Mel
melanie@homeloanconnexion.com.au

I too have had some long hunts for good regional deals and overall find NAB, CBA and a few mortgage managers we use the best sourcing lends up to 95% in small areas. The PMI and GE postcode lists are never static and often their LVR% lend will depend on the strength of the security and the applicant, rather than the straight postcode.

My tip -…[Read more]

Peter G,

Any IP you hold for more than 1 year you can get the 50% CGT exemption on – will any of your IP’s fall into this category and hence able to be sold to help you to keep the family home by the time you’ve increased debts for construction projects? [?] One that is currently negatively geared but with good equity would be a good start.

It…[Read more]

Agree with Melbear – what is your true $/wk cash outflow without depreciation? What would you like it to be? Armed with this and a bit of research/assessment to see which ones you can/cannot expect further capital growth or reno opportunities on you’ll know which one(s) to pick to sell off if you want to reduce debts on other IPs to make them…[Read more]

No the bank cannot automatically claim cross-collateralisation but if servicing is tight it’s better to go to a separate bank as Bank B will take the existing debts to Bank A at face value whereas if loan 2 is with Bank A they will probably apply an interest rate safety margin on both loans even though they aren’t cross-collaterised and reduce…[Read more]

Talk to your local council, but quite acceptable in a lot of large min. lot size areas, just may not be able to strata title & sell separately – if you are all the better!

[]
Mel
melanie@homeloanconnexion.com.au

Every bank’s different and it’s not clear cut. Taking the St George example: they will look at bedsits/studios >25sqm for PPOR at 80% LVR or >45sqm for I/P for 80%. Serviced apartments are different and they’ll only lend for >50sqm at 70%LVR or <50sqm at 50% LVR.

At 20sqm I think you’re a bit hamstrung to be honest, that’s a box!

The suburban…[Read more]

If there’s nothing obvious like ‘subject to finance’ which they can never prove/disprove and is an automatic out for you, then I back xyzzy’s suggestion and get a copy of the contract to a lawyer asap.

If you’ve gone unconditional on the contract and cannot get out, but then don’t proceed with the purchase, you stand to lose all of the deposit…[Read more]

Hi Blowie,

If these are the apartments I’ve seen advertised recently then the reason they get such high rent is that they are serviced apartments, ie available for o/night rental through onsite hotel-style management team, and yes as Chris points out, probably below the standard limit of 50 m2 in livable area (not balconies or storage areas). If…[Read more]

Hi Logues,

I too am not a financial advisor but if it was a family member of mine and they knew very little about investing I’d suggest that they get rid of all short term personal debt and see an accountant and get their cash into a flexible cash management trust like ING earning about 4.75%, then depending on their overall position (ie 100% of…[Read more]

Clayfield, Brisbane in a brick terrace house in Queenslander homestead heartland, couldn’t quite afford one, one day …!!

[]
Mel
melanie@homeloanconnexion.com.au

Howdy,

As a broker I genuinely don’t see the interest rates on low doc loans streaking ahead of the pack primarily because there is so much competition between low doc products. [][^] That and the fact that yes they are getting a premium payment already to cover the higher than expected default levels.

I think that if rates go up over about 9%…[Read more]