Unless there has been some serious renovations you wont be getting to much in the way of Capital Allowance claims and without knowing whats inside it is hard to comment on Depreciation.

Why not contact someone like "Depreciator" or "Washington Brown" and see what they have to say.
Most QS forms will give you an indication of what is likely to be claimed over the phone without spending your hard earned.

Hi Rob

How is you group coping with the initial ATO ruling last week that the Tax credits wont be available to individual mum and dad investors only to Companies and Charities ?

Hi FAME

Firstly welcome to the forum and I hope you enjoy your time with us.

If you really want to keep the property then certainly selling the property to a Trust is an option however just bear in mind you cop Stamp Duty on the Transfer value but i guess on $210K it is not a fortune.

Also might want to check with the OSR as to whether you would loose your Land Tax concession.
In most States where the asset is held in individual names there is a threshold where the land is exempt from LT but often where the property is held in a Company or Trust name this benefit is eroded.

Still we are not talking sheep stations and at the end of the day if you believe the asset will appreciate in value over the long term certainly worth considering.

Ok 2 weeks wow you are pushing it.

If the anticipated purchase is 675K what are you looking to borrow against it.

I assume will be looking at the property as an investment property so wont be claiming the FHOG.

Realistically max lvr would be 90% and anything over 80% lvr the mortgage insurers are going to want to sight 3 months savings history. Also i would be trying to ensure the lender has done a full valuation upfront rather than risk this post auction.

With the Auction terms does the vendor require 10% on the signing or will he accept a Deposit Bond.

All in all at < 90% possible to get finance but going to be fairly tight.

Hi Kim

Congratulations on making a move on starting your portfolio.

Couple of areas to investigate further in my opinion before proceeding further.

1) Definately ask the selling agent about details of both the adminstration & sinking fund levies for the Body Corporate and also ask whether their is any intended expenditure due. If the Vendor wants to sell the property ask him for a copy of the last Annual minutes of the BC meeting which will reveal further details. (You seem to have some lvy information but i would want more).

Complex if fairly large do check whether you consider there is any chance of potential ongoing capital expenditure such as lift or swimming pool repairs.

If you need a further sales comparison let me know and I can email you a Residex report which will at least give you some further comparisons and statistical information.

2) You mention the propert is likely to cost you approximately $100 week but have you consider some of the non cash deductions which you claim such as Depreciation and Capital Allowances. A Quantity Surveyors report post Contract would be money well spent as you maybe suprised as to what you claim.

Dont forget loan costs are also deductible over 5 years or the term of the loan whichever is the shorter but your mortgage broker has probably indicated this to you.

3) On the financing side make sure your Broker fully understands that you dont want to cross collateralise your 2 loans.
Make sure they are au fait with investing structures. Normally your lender will want to organise a full valuation on the property so make sure the Banks valuation is disclosed to you to further check the purchase price.

Hi Zac

Are you looking to be the person buying the wrap or buying the property and onselling via an instalment contract.

Big difference.

If the later dont think you will find anyone in HB who has probably even done one but if the former then the Seller will be the one who prepares the Instalment Contract and offers this to you for your consideration.

We still sell our Qld wrap pack which includes a fully compliant Instalment Contract as i have done one or two of these over the last 14 years.

Ok understood.

Back to what i said earlier wont get more than 80% and will need to demonstrate an exit plan i.e sale of property etc etc

Agree with Banker i cant see any reason at all unless it is a very short term and for some unbeknown reason you dont want to approach a conventional lender or you need the money this afternoon. 

Hi Mike

You are able to claim the deductions on the interest and other expenses once the property is available for rent.

Think you would have a tough time when you are still living in the property to argue it was available to be rented.

With regards to a financier in Brissie i have 1 or 2 IP's so be happy to answer a few questions or offer up some advice so feel free to give me a yell or drop me a line.

Major meaning it cant be financed using the property as security.

Sure if you owned a property and have a $100K line of credit and wanted to throw your money away then go for your life but you wont find any traditional lender finance such a security in the current climate.

As tenburner mentioned run for the hills.