Forum Replies Created
Actually you do pay it as a landlord.
I get $530 pw for my 5 bedroom home. I furnish the place and pay the bills as well as maintain the garden.
Median rent for this place is probably $260 pw so as you see I am well in front.
This is what students expect when the rent by the room.
They could band together and rent a house cheaper, but that means more organising and someone has to take responsibility.
I find it works great but others hate it.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Depends on the council – Mine specifies that a home for more than 10 seperate adults is a boarding house and must have permission.
Give them a call.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
She needs to say that she cannot obtain suitable finance.
Her solicitor can help with the exact wording.
The lenders she has approached or her broker should be able to give a letter stating that they couldn’t help.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Ozi,
I think you should stick to your instincts and encourage your sister to walk away from this purchase citing her finance clause.
It is not something I would be happy with my sister buying.
Having said that I am not a Financial Advisor and have not considered anything but my own opinion here.[blush2]
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I am a real mix.
Mum’s side has first fleeters as well as Sarah with no surname whom we recently found out was an Aboriginal house girl who married a well known horseman in the Mudgee district. Was kept quiet until recently but we are all quite proud of it today! Not that you’d notice with my blue eyes and fair hair but some say they can see it….
Dad’s father was a Polish Jew who fled Europe as a refugee. He had few known relatives surviving the persecution during WWII. His Mum was the daughter of a prominent State MP who as Minister of Roads laid the first stone of the Harbour Bridge. Has a plaque there and I must take the kids looking for it next time we are down there.
There are a few more interesting stories – of course each generation you go back you are doubling the ancestry so I am sure we all have some very interesting people back there.
And I married a Kiwi so my kids are even more mixed than me!
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I suspected that your plea for advice was a thinly veiled ad for the property.
I have deleted your posts and several other ads you have posted.
Any further advertising and you will be banned.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Of course you aren’t crazy. As a first timer, if you feel uncomfortable then you did the right thing finding a professional who suits you.
However, generally it is the confident capable broker who charges the fee knowing he is not hungry for business. A potential might exist for your new broker to be keen as mustard but green as grass in the commercial field. Make sure you check his experience.
All the best,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
What the yare trying to avoid is doing al lthe work and then having the client get cold feet and them not being recompensed for this.
Ask them to reword it or even delete it.
A contract is something both parties need to be happy with. If they wont negotiate it then get your finance elsewhere. It is a free and open market.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Sounds promising to me.
In addition your depreciation should be strong too.
Remember to check the lease.
Is the property in a locations where there is demand for a new tenant if you need one?
Does tenant pay the strata fee?
Remeber to factor in the higher interest rate and the higher deposit requirement.
Cheers
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Derek is spot on.
Don’t use cash for deductible debt until you have killed the nondeductible debt.
All the best,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Yes is quite standard in the commercial world.
A lot of work goes into this type of lending and sounds like this broker prefers to deal with people who are serious. Not just tyre kickers.
It would be the same in the residential industry if it wasn’t so competitive. Many residential clients insist on an upfront payment refunded if the loan is refused or the client settles. Just covers them for the work they do when the clients get cold feet.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Waz,
This is a high risk area.
These studios are being marketed to Australians with all sorts of promises of high returns and strong student demand.
The truth is that there is an oversupply of them in Auckland and in addition there are less international students studying in Auckland.
Do some searches of this site for some stories on this. Some experts believe there will be a dramatic price fall in the smaller apartments in Auckland soon.
All the best and don’t be discouraged. Perhaps you need to investigate what most investors are after and then the demand will always be there.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Yes you wil lsave money on insurance wit hstrata but pay a lot more in body corporate fees. Sounds like that agent is trying to talk you into something.
With Torrens title you own the land component – and usually a larger land component than a strata property.
Land appreciates.
Generally a house and land is a better investment however there are always exceptions. Views for example can make an apartment a lucrative investment.
But as a rule of thumb – capital growth generally favours homes on blocks of land. If you can afford to start there then this is what I would do.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Pagan,
As brahms alluded it is not the end of the world.
If each loan is lower than 80% of the property value then your lender should be able to unxcoll them.
I wouldn’t panic however if not.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
How are they ever going to know the relationship of the occupant? Maybe the uni student can be your “cousin”?
I am guessing that this was done for the DA to build but cannot imagine it would be rigidly enforced – perhaps you need to seek legal advice?
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
You need to speak to some experienced people and use their accountant.
I cannot answer your question – but if you email me I can forward it to some people who do it.
All the best
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Can you subdivide the block and either develop or sell? I imagine this will get you the most gain.
A coat of paint is ver ycheap and can work wonders. Tarting up the kitchen and bathroom, changing to new power points, light fittings and switches also makes the place loom more modern as does sanding the floors.
Are you looking to increase the value in order to sell or get a larger loan against it?
If the latter then just changing lenders can often be the cheapest!
Cheers,
Connecting the the sewer would be handy but would it make the property more valuable?
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
You shouldn’t compare what you want in a property to be the standard to what a rental property needs to be.
Get a PM to come through with you to make the minimal changes to have the property rented quickly and for a suitable amount. Understand that a coat of paint and a new stove will be cheap and get you a good rent rise. A new bathroom and kitchen will be expensive and you will poss not recover this outlay with the rent rise.
Apartments in Sydney rent well and if clean it will rent for an appropriate amount. Many people don’t care that a bathroom is small etc.
Ditch the current tenant – he is on a good wicket and wont be happy to pay more. Get market rent then use this and the equity to buy again.
With a reliable PM you wont have to do much on this place or deal with tenant problems. Look at the bigger picture and grow your equity rather than trying to grow your rent.
Use the equity in the building to buy a couple more and triple the rent rather than try to do it up to get 20% more rent. At the end of the day the first option will probably be the cheaper one after all is said and done!
Thats what I would be looking at doing myself but at the end of the day it is your call!
All the best,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hannah,
If you earn enough and have a suitable deposit then you will have no problems.
I have done several expat deals in the last month and there are some lenders better than others [biggrin] This is the case for all the different borrower scenarios tho so don’t let it worry you.
Find yourself an experienced broker who has done this before and you will be fine.
All the best,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Cameron is quite correct in that transferring to a trust can change the home to an IP and make the new loan deductible.
However some states allow for the transfer of title between spouses with no stamp duty – call your Office of State Revenue or it’s equivalent.
This means you can “sell” the house to your wife. She can borrow 100% + costs and this loan will be fully deductible as it is now her IP. The money she borrowed can be used to buy your new PPOR.
If this is likely to happen again with the new PPOR perhaps becoming an IP in the future I suggest you take out an 80% loan and place the balance of funds into offset. This then allows the loan to be fully utilised if the property is rented and another PPOR bought.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
