Turn your PMs on

No DW the alcohol hadn’t taken effect, yet!

before firming up your offer get inprinciple approval of finance. Also speak to a few building companies which are building similar developments in the area.

bonus points for the goose who has now put all borrowers out of the market until mid-2011 when borrowers will get a ‘better’ deal.

Robbie , be advised, there are changes afoot in NSW for buyers & sellers: soon property inspections will be paid by the vendor but reimbursed by the buyer. Thus reducing costs for buyers going into auctions & being revenue neutral for vendors (if they sell).

joe, all of your questions seem to point towards which occupation will pay the most with the least financial outlay, least commitment, least experience & least risk without giving up your current job.

What is it that you want to do?

consider carefully how you propose to purchase, it may be better to buy within your smsf, trust or other vehicle than personally or with the trading coy. The separate entity can then lease back to the business.

If you must pay gst on the purchase, make sure settlement date is close to your BAS report date so you can claim it back asap. Don’t leave settlement to the last week of the month as unforeseen delays will impact on your bas lodgement.

you might consider the following: a) rent to buy scenario with your mum owning the property however this may affect her eligibility for the pension/tax etc or b) you purchase the property in your names & your mum putting a caveat on it to secure her interests, she can Then get a LOC using her house as security & put a mortgage in place for what she lends to you.

FP’s are all about diversification & minimisation of risk across a portfolio. This required good skills in asset allocation & portfolio analysis as well as developing an understanding of the client’s risk profile.

To achieve the right balance, most FP’S avoid direct property favouring indirect property eg property trusts, syndicates or property-rich companies. Portfolio theory will vindicate the FP’S, as overexposure to property has been achieved by the ppor.

If I use the services of an FP it’ll be for balancing the non-direct property components of a portfolio.

the ob restrictions vary between states, nsw is 6 yrs as well. the cost of doing ob & perceived savings are more often outweighed by the efficiencies of using a builder.
You may be able to reduce this timeframe restriction by having the other owner take up the ob licence.