Hi NetMart

I agree with the others re getting as much information as you can handle first. A good place to start if you don’t want to spend too much at this stage is your local library. Work your way through as many books you can on property investing.

There are many strategies to obtain a good profit and you should be investigating several at…[Read more]

Hi Pat

The way it works is that investors establish a line of credit secured against another property(s) which they then use to pay cash for properties they find. This gives them an advantage when negotiating.

Then, if they are keeping the property, they will find finance and pay this back into the line of credit. Or, if they bought for short…[Read more]

Anna

You really need to structure your loan(s) so you can pay your personal debt off as fast as possible as this is not tax deductible. Debt for investing is tax deductible so it is usual to have this as interest only until the personal debt is paid off.

There are a number of ways to structure your finances for fast personal debt reduction and…[Read more]

I too would recommend holding off selling. At least until you have done a lot of sums to work out what you want for the long term. Renting it for a year or so and selling then may be the way to go.

You are thinking of options, which is a good start. Here are some other things to consider:

When you say you love you first home, does this mean…[Read more]

I don’t specifically look for properties to renovate for profit on the renovation, but I do like to buy properties about 5-8 years old that have been used for rental properties from day 1. By this time, they are tired and badly in need of paint which the previous owner won’t do. So I get them cheaper as they don’t present well. And, they are…[Read more]

Hi Yack

To get the judgement marked as paid or the equivalent requires them to pay you, then for you to provide them with receipt and letter of discontinuance which can then be lodged with the court that issued the judgement in the first place. It will then be updated, not removed.

Judgements will be automatically removed at 5 years after the…[Read more]

The reason for the 2 years in business rule is that most businesses fail in the first 2 years. As Steve says, there are lenders who will lend to someone who has had an ABN for less than 2 years but the maximum LVR is usually lower and the interest rate higher.

Margaret Wilson
margaretw@powerloan.com.au

Hi hghaas21435

If your problem is cross collateralisation, the simplest way to fix the problem is to either change to a Lender who doesn’t cross collateralise (there are some, email me for info) or to spread your portfolio over at least 2 lenders.

Margaret Wilson
margaretw@powerloan.com.au

11. Give everyone a free library card to your library of investment books. The majority won’t use it. For those who do, this is the last present you ever need to give them.

Hi Flop

I agree with Terry that you need to do your sums. How much equity have you got to release.

With a fully flexible loan, you should be able to do a partial discharge or security substitution when you sell you place and buy investment property.

I have also sent you a PM.

Transfer the townhouse into another name – a spouse or a trust. Take a 110% loan out against it and place the funds (after costs) into an offset account on your current PPOR.

There are stamp duty issues with this. Full stamp duty (at SA Govt exhorbitant rates) may be payable.

Increasing loan on current place to buy another has issues re what is…[Read more]

Different PMs have different regimes. Mine collects rent weekly, fortnightly or monthly depending on the arrangement he has negotiated with the tenant. I get paid on about 22nd of the month for all monies received up to 20th month. This is especially welcome in the months when I have to pay GST.

He seems to have no problems with the short time…[Read more]

My indulgence list:
1 book per week = $1560
coffee with clients = $1300
coffee by myself = $1300
lunch = $1300
snacks when bored = $1000

Hmm. Maybe I should be channelling the snacks into books. Wouldn’t go to waist then.

I’ve been using Gemini Management for nearly 10 years and have had good service in that time. Regular inspections and reports, both on what I need to do and what the tenant needs to do. All of the tenants requests are passed on but we discuss whether it is reasonable or not before I actually do it (and mostly I don’t unless it is normal…[Read more]

Mike is in Adelaide so a wrap is not possible.

I have discussed this deal with Mike and, since neither of us has ever done a lease/option and vendor financing is illegal in SA, we would both welcome any help here. Is there someone interested in doing this deal for him?

I would also like info on how to set up a lease/option or similar deal in SA…[Read more]

Hi Shane

There are maisonettes in lots of areas in Adelaide, not necessarily in no-go zones and not always built by Housing Trust. Probably cheaper because there is less land. Also because the demand for them is less. And they tend to be smaller than stand alone houses in the same area.

For maisonettes, you would need to double check on the…[Read more]

I prefer units in small blocks with strata or community title or townhouses with community or torrens title (decision is based on cash flow including maintenance and not on property type). Most lenders will lend against these types of titles. I wouldn’t touch company title as I can’t borrow against them easily.

What I look for in units is a…[Read more]

Hi YC

My understanding is that travelling to investigate the purchase of a property is only claimable if you are already established as a property investor.

However, once you have bought the property, then travelling to inspect and/or do repairs is claimable. You may have to apportion travelling and accomodation costs between the business part…[Read more]