Thanks for the response Terry, this is a huge help – had one more question for you if you get a chance.. the title transfer would be due to a marriage breakup so it seems the exemption of CG and stamps would apply however to qualify for this exception does the title transfer need to go into my friends name or can it go into someone elses? My friend has seen a broker since my last post and will not be able to afford the repayments if the entire property is in her name. I could potentially buyout the ex-partner and take on half the repayments, however if his half of the title was transferred to my name would the tax exemptions still apply?

Thank in advance

Hi guys

Thanks for your replies, I am chasing down the info required to sort this out namely bushfire rating requirements as this is the most expensive. Not too concerned with the exposed agg driveway but after using a few A/C calculators online I figured out I should only need a 6.5Kw and a 2Kw, I believe that both of these should cost only approx $3,000 ($2,200 6.5kw and $800 2kw). The garden is 54m2 and nothing out of the ordinary, thinking small parameter garden beds and lawn. Fence is a council requirement due to proximity of school.

Any clarity would be great.

Thanks

Thanks Jamie

Yes it is a very cheap loan, pretty happy with it.

My serviceability is excellent at the moment so I’m not too concerned about borrowing capacity. I really just want to work out whether I’m ahead or behind purely from a financial point of view if I have the loan funds in the offset or am I better off not having the loan at all? I also don’t really understand how my personal loan has a flat rate and a reducing rate at the same time – I am paying principal and interest so therefore by default the personal loan is reducing – does this mean I am paying the reducing rate?.. in that case its not so cheap at all.

My finance skills clearly need some work… any help will be greatly appreciated

Thanks Jamie .. this could be good news.

LVR is 90%

Thanks Richard, your comments are always appreciated. I would love to purchase 7-12km out from Brisbane but unfortunately my budget wont allow this, I am also looking for something with a long settlement period which will give me a bit more time to get the deposit funds together.

I am still struggling with the capital growth perception that these outer areas are receiving though, all the data I can find suggests that the areas I am looking at receive above average annual growth over the long term and all experiences with such areas confirm this data yet I still find that it is generally agreed that strong capital growth 50km out is not a realistic forecast.  

Any thoughts on this would be great 

Cheers 

Hi Josh

My understanding is that he has not started the build, he is waiting for financing to be approved before works will start.  He is building a house. The investment was targeting capital growth but structured to be positive cash flow as well but the issue is now that while the positive cash flow is still looking promising the capital has fallen through with the market dropping and thus can't secure the loan to commence the build. To sell the land now would likely result in a loss, worst case scenario he would fork out the 44k from his back pocket to get the build done and start producing an income but he wants to avoid this as much as possible. It may take a bit of creativity or simply be impossible but if there is a way it would be good to know as this seems like a common occurrence especially with the current market.

Se7en 

Hi Jamie

Sorry I was referring to his ability to draw on the valuation for his deposit in lieu of reaching into his savings which would impede his ability to provide a deposit for his next development.

He is building a residential house. Deposits seem to be the big issue as with a lot of other investors, do you have any pointers on how to overcome this? 

Cheers 

se7en