Well if it is family and a holiday home type thing then that eases my mind somewhat.The big disadvantage that you need to understand is this:Lenders will insist that you and the sister be joint borrowers on this property.  This means you will both be liable for the full repayments should the other party default.Now when you go to borrow funds…[Read more]

Furnished homes appeal to short term renters.  New furniture can be well depreciated but it does mean a higher maintenance requirement.   I just went around to one of my furnished IPs to replace a $20 kettle

Why are you doing it and what do you hope to achieve by investing with another person?I would only do so if I had no other options.Ciao,

Sorry Xenia,  I was wasting time sleeping.

What are your longer term goals?Once you have them articulated the answer will be clearer.Do you currently have a high income?  If so then unencumbered IP income will be taxed pretty high.I would need more info before making suggestions.Ciao,

Don't pay off either.Change all loans to IO.Save money for your next investment in a high interest account in a lower tax paying spouse.  Not much point in an offset attached to an IP but you can do it if you prefer.I imagine you might want a PPOR soon.  If so you shouldn't pay down either IP cos if you redraw for a PPOR then it wont be d…[Read more]

I would run some figures before making a decision.If you wish to get into an IP sooner then using the cash for a to pay out a loan means you have to start the whole savings process again.  You may be able to afford to buy then start an accelerated repayment plan to kill the personal debt and then keep it running for the next deposit.I would…[Read more]

I would rather slam my old fella in a car door than work for that mob.They are the bottom feeders of mortgage salesmen.  Notice I didn't say brokers, they don't provide much choice of loan – just hard sell one product with a big fee attached.  Any real broker can do the same thing for free without the hard sell.

madproperty wrote:
Thanks Simon soungs good but I have a few questions. Regarding deductibility – just to confirm the 20% deposit plus costs from the LOC and the 80% loan on the IP will be tax deductible?Won't paying the rental monies and my wages etc into my home loan make the other loans non deductible because the expense incurred is not…[Read more]

Easiest way is to run your figures past a broker.  He has software for all his lenders and can tell you who will lend the most or at the best rate – whatever is most important to you.Use the LOC to source a 20% deposit plus costs and then buy an IP.  Borrow 80% against the IP using a seperate facility.  Usually I suggest a pro package which gi…[Read more]

Are you sure you don't have the equity for a deposit?  I suggest you speak to a decent broker and fully explore your options before signing up to a more expensive option.Ciao,

Commercial deals are not like residential finance.  There are few standard deals.  You really need to speak to a good commercial broker.Typically rates start a bit higher than resi loans with LVRs around 70%.  If the LVR rises then so does the rate – markedly so.Depending on what security you offer we might be able to combine a resi mortgage wi…[Read more]

In your situation I too would recommend you look for more expensive properties that have potential for high growth rather than amasiing a large number of cheapies.I would also speak with a professional about setting up a high growth share portfolio to get the investment ball rolling to build a large deposit to secure the first place.I am thinking…[Read more]

Do a search for DHA and find a huge thread on it.Ciao,

I am in Newcastle and would love to know of hese places.

Why didn't you insure the property as soon as contracts were exchanged?

Some people did great doing this at the beginning of the last boom.  Then as people saw them making money they started going in.  The more cautious waited longer until they were sure it worked and then they bought in.  These were the ones who were hurt the most. Then a year later when the places were built they came to me asking for finance on a p…[Read more]

GlobalMark wrote:
Dear Richard,I agree with what your saying there is a lot of irresponsable lending going on in Australia and around the world. You only have to look at the sub-prime issue in America to see where our future could be heading.However, in this situation $700 cash in hand means that she is not delaring the income to the tax office,…[Read more]

Some fair points there and better reasons than it sounds like going to the races.Investing and trading are worlds apart.  In fact I will just leave a quote here which I use to remind myself why I choose not to trade."The Stockmarket exists to move wealth from the impatient to the patient."If you ever get the urge to do some learning on…[Read more]

How long do you intend to hold your IP?