The 2 /3 deals we got in from them in Brisbane where down in Browns Plains / Jimboomba.

They were standalone freehold houses on an estate and where told the area was owner occupied.

When i called a couple of local agents they told me the whole street had been sold to investors and the rental demand was non existant.

Cheers

Yours in Finance

Hi Tysmeister

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

I certainly would NOT use your own capital to construct an investment dwelling as when you come to buy your own PPOR down the track the interest will not be deductible yet the rent you will receive on the new investment property will be added to your Taxable income.

If you structure the loan correctly you should be able to borrow the full construction cost of the new Investment property and retain your cash funds for your own non deductible PPOR when you come to buy again.

Using a 100% Offset account will also reduce the amount of interest paid on the investment loan until you utilise the funds for the PPOR.

I am not sure whether the current land is mortgaged but there are a couple of additional ways to maximise the deductions.

I am currently working with another forum member in exactly the same situation as your own and we are re-structuring the borrowing to maximise their deductions.

Come back to me if you have any questions of need a hand.

Cheers

Yours in Finance

Hi Tommy

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

Certainly don’t buy the property in the name of a Pty Ltd Company as you will loose the CGT concession.

Being your first purchase you probably want to look at buying the property in your own personal name especially if the property is negatively geared.

Down the track you could always look at establish a Discretionary Trust and having a Corporate Trustee.

Just make sure your Mortgage Broker structures the loan correctly to maximise your deductions and also set up for further investment purchases.

Cheers

Yours in Finance

Hi Peter

I am assuming your Broker has merely carried out a modelled estimate of the property to ascertain the value.

With knowledge of the property or where the property is located it is difficult to comment further.

Might leave your current Broker to provide you with such advice.

Cheers

Yours in Finance

Hi Peter

Must admit I am a lover of blocks of units (at the right price) having just sold a 18 pack in Brisbane after owning it for 12 years and still own 2 6×2’s here in Brisbane. Developed over 50 blocks over the last 20 years so think there is real value at the right price.

If you intend to keep the properties there is absolutely no need to Strata Title them however saying in that the Local Council my well charge you Council Rates on the basis they are 3 separate units.

Ask the Agent to email you a copy of the original survey plan and any other plans / documents that relate to the property i.e drainage plans etc as this may help when it comes to Strata Titling the property.

In regards to Insurance make sure you use a specialist Insurance Broker as it is unlikely your average Tom, Dick or AAMI will provide cover however that is fine and is like any other Insurance.

Many lenders will not touch multi unit dwellings however in saying that there are still a few that treat them as standard residential security and will go to 90% if required. (Assuming they are > 40 Sq Metres in size etc)

Property in the right place and at the right price can perform very well so don’t be put off by buying 3 in 1 go.

Cheers

Yours in Finance

Hi Rust

One big downside is if you end up paying cash for the properties is when you come to buy your PPOR you will have to borrow and therefore find the interest to be non deductible whilst the income from the properties (even if you do buy in Trust) will be Taxable income.

In an ideal world you would gear against the properties and place the savings in an offset account.

You mention that you are not working although you do not mention whether you are self employed.

If you are and have had an ABN for the last 2 Years then this options up plenty of options.

Would need further details to provide structured answer.

Set up probably you could certainly have your cake and eat it.

Cheers

Yours in Finance

Avoid CBD and Inner City Units as there will be an oversupply of units when they all come to market.

Anything within 8 kms should be fine but personally i would avoid new properties.

I have just sold a block of 18 units in a Inner Western suburb which i purchased in 2002 for 1.8 M and sold for 5.8 M settling in October 14. Whilst i renovated them when we first purchased them the the growth has been more than encouraging. Rental demand was always good.

Certainly I would not have purchased a Queenslander for an investment given the higher upkeep costs so a well placed unit should help balance the books.

If you were a BA client of ours we would suggest a smaller established block (under 8 units) with 2 bedrooms close to transport.

This way the Body Corporate has been established and you have a good track record of the past expenses and can assess the sinking and administration funds.

Cheers

Yours in Finance

• This reply was modified 9 years, 10 months ago by  Richard Taylor.

Hi Ivan

Had a number of Forum clients who were buying thru them and when we saw where the properties were located they were surprise surprise overpriced as usual.

In most cases the valuations came in at an amount less the marketing fees circa 40-60K.

Cheers

Yours in Finance

Hi GP

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

Not sure which part of Brissie they would want the property to be located but i have to say i would definitely look at taking it further.

Take the loan to 80% but set it up as a split loan being the amount you need to settle the PPOR purchase and the balance of the 80% as an equity loan. Use the equity funds as deposit to start your investment portfolio.

If you intend to keep the PPOR longer term structure the loan so that as the non deductible split reduces the investment split can be increased by the same amount.

We link an offset A/c to the non deductible split to save additional interest.

Cheers

Yours in Finance

Hi Danny

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

Your post has a number of questions so I will try to give you an overview.

Firstly in regards to accessing equity from your existing property subject to a current valuation and an acceptable loan to value there is no reason why this can’t be done.

If you were a client of ours we would start by ordering a valuation on the property to assess the current value and once this was back we could see what could be released.

The property Title is in your personal name so the equity loan would also be in the same name.

If you intend to purchase your next few properties using your Family Trust then these loans will be in the name of the Trust also (I will assume you have received advice in regards to purchase your next couple of properties in the name of the Trust).

As far as a local mortgage broker most of us operate Australia wide as most applications are submitted electronically and the relevant Credit advice and processing can be done by email and the odd phone catch.

I have a number of forum FIFO clients who are working in NW WA who I have acted for for years helping them structure their portfolios but have never met them face to face.

It all depends on what your comfort level is. Many clients lead busy lives and prefer email communication.

Just make sure your broker has some idea about investment loan structures and is a property investor themselves.
Nothing like getting advice from someone who has never purchased an IP and is still paying off their own PPOR.

Cheers

Yours in Finance

• This reply was modified 9 years, 10 months ago by  Richard Taylor.