natwayne

This is a common question which appears regularly on the forum so I do encourage you to do a search and read the previous threads.

With regards to the financing of your new property this should not cause a problem dependant upon your servicebility and a normal land / construction loan would be available.

One thing to consider would be incorpating your car loan into your new borrowing to reduce the rate of interest being charged.

Either way it is probably best to consult an independant mortgage broker to obtain a clear picture of your options available.

Cheers Richard

Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.com

IP funding and US property finance
our speciality

Hi Milly

Firstly if it does not read as a rude question are any of the kids over 18?

Investing in property can be a wonderful form of wealth creation but as long as it still gives you a life.

A balance between capital growth and positive cash flow can be the ideal way forward as long as you afford to fund the investment along the way.

Certainly with many properties located in regional Qld you will find that the rental income goes a long way towards covering the interest expense on the loan however you still have the other related expenses.

Obviously, from your income tax position depreciation and building write off have little benefit to you so therefore the higher income would assist.

Remember that the Centrelink income will cut out one day as your childen are no longer dependant and you may feel that you need to replenish that income.

I believe that you should maybe consider selling one of the properties to reduce your monthly expenditure weighing up the CGT consideration.

The balance of the funds after sale proceeds could be used to repay your non tax deductible home loan and put you in good stead for purchasing a cheaper priced + Cash flow property.

Another alternative is to consider wrapping as an effective method of increasing you income.

Finally, I am unsure as to how you have your current loans set up but the correct loan structure can certainly save you 000’s of dollars over the years. Suggest before you do anything you consult with an independant mortgage broker.

Cheers Richard

Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.com

IP funding and US property finance
our speciality

Calvin

“HomePath is a wholly owned but non guaranteed subsidiary of the Commonwealth Bank. As a separate legal entity HomePath is able to offer products and services in its own right.

A HomePath loan is not a Commonwealth Bank loan. It’s an outstanding lending solution that offers a range of flexible award-winning home and investment home loans.

HomePath is designed for customers who want to apply and manage their loans over the Internet, with the support of a phone help desk if required.

The Standard Variable Rate Home and Investment Home Loan

The option that delivers maximum flexibility, and enables you to make the most of lower interest rates.

This rate may fluctuate depending on market conditions. However, HomePath currently offers one of the lowest Standard Variable Rates on the market, while offering additional features such as Repayment Redraw and Loan Portability. But sorry old mate NO Offset. Oh yes and our service makes the Commonwealth Bank look absolutely wonderful in comparison.

Cheers Richard

Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.com

IP funding and US property finance
our speciality

Hi PP

Yes many lenders simply won’t provide finance to Owner Builders however in saying that there is stick many lenders who do.

Traditionally you will be limited to 80% LVR although i do have 1 lender who claims they go to 90% LVR on a case by case basis.

In saying all this if you have existing security to offer as addition collateral with equity you should be able to arrange 100% plus costs.

Email us if you need a few lenders.

Cheers Richard

Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.com

IP funding and US property finance
our speciality

Jarrod

You state “I renovate houses by myself” yet appear not to have been in touch with the QBSA.

Do we assume that the market value of your renovations on each property is less than $11,000?

Cheers Richard

Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.com

IP funding and US property finance
our speciality

Hi Jacob

I think Misty’s question was is there anyone out there doing wraps in Frankston.

Obviously from the response I guess not.

Out of all of the properties we own under wrap we have never purchased a property first and then tried to wrap it. If you let the wrappee choose the property then you end up buying something that they actually wanted to live in

People get into wrapping for a variety of reasons but usually the most compelling reason is the additional cash flow.

Wrappee’s enter an installment contract normally because they can’t obtain traditional style finance. A wrap can be the leg up they require to obtain a start in the property market.

Cheers Richard

Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.com

IP funding and US property finance
our speciality

Nath

Banks go past 80% LVR on a LOC and dependant on the security type 70/75 or even 80% is not out of the question for a Commercial property.

Cheers Richard

Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.com

IP funding and US property finance
our speciality

Carl

Yes it certainly can be done that way.

Some lenders will require the Trust hold an ABN for a minimum of 2 years which is obviously not going to be the case if the Trust is new.

Other allow the ABN to be registerd for 1 day.

If you care to email me more details i would be happy to point you in the right direction.

Cheers Richard

Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.com

IP funding and US property finance
our speciality

Hi Oct

Welcome to the forum.

Buyers agents can play an important for any investor irrespective of their experience.

A Buyers Agent can source property that may bring a better return through higher cash flow or capital growth.

Sure if you now the area that you wish to invest in and can spend time going to carry out the due diligence then you will save a few dollars but in the meantime you may miss valuable opportunities.

Certainly i can recommend Mic from House Hunters in Newcastle and Westan and Alvin based in NZ both who are contributors to the forum if you need a starting place.

Cheers Richard

Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.com

IP funding and US property finance
our speciality

Hi Op

Steve has already answered the equity question so i will not go over old groud.

With regards to your Superanuation I assuming you are referring to a Self Managed Super Fund. Yes you can certainly invest in property however just bear in mind that the fund cannot borrow funds in any form or shape and cannot be seen to carry on a business.

I have used my Super Fund on more than 1 ocassion to purchase a property and wrap it.

Cheers Richard

Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.com

IP funding and US property finance
our speciality