– Answers and responds to calls/email in a timely manner
– Keeps me in the loop and regular update
– Honest and a straight shooter
– Experienced with a variety of clauses, sale contract, section s149, different type of title system and understanding of trust and legal ownership

personally i dont expect my lawyer to give me advice on property investing ( would be good- but you may be searching for a while) ..as long as they execute their job well- ill leave the tax to the accountant and the property investing side of things to my own experience or my property mentor.

umm can i ask why you need your conveyancer to have personal IP experience???
wouldn’t you rather a conveyancer with plenty of experience in property transactions and legal paperwork ???

End of the day, the conveyancer is not going to tell you if it’s a good buy or not…and what you can claim etc..

I can recommend you to a conveyancer who has 1 IP, he wouldn’t call himself an experienced investor…but his a bloody good conveyancer.

Regards
Michael

don’t know about buying with only a 3% deposit…
As Jamie mentioned it’s MAX 95% + LMI = ~97%

But i have to be honest it’s not an easy loan to get approved!! your file needs to be water tight!

^^ pop Jamie above an email; great broker!

Regards
Michael

They been speaking abt a 2nd airport for YEARS now!!! nothing new…+ i doubt they have the money to build it ..just look at what happened to the epping to Parra train line??? say they will build it to boost their votes in North west- once they get in ” sorry no funding for the budget…”

Regards
Michael

Yes bank do look at it slightly differently – Lower LVR, depending on the property type the rental income can be discounted by 50% for serviceability + not all banks will accept the commercial security – ie diff bank have diff niche when it comes to commercial.

Example:

ING commercial hates hotels while ANZ has a niche for it and would offer a competitive rate + a great LVR.

Here a list of commercial type properties + business loan as a guild
http://www.shapehomeloans.com.au/commercial-loans

I terms of responsibilities as a “land lord” i would say it’s the same…take care of your tenants and they would take care of your asset.

Regards
Michael

with that sort of income x 2 …5% shouldn’t take too long.
Unless you have some friends /family that’s willing to lend you the 5% you could go for a Non genuine savings loan.

Regards
Michael

Call David from D and L partners – http://www.dandlpartners.com.au/ – they specialize in property tax and any trust set up including SMSF.

– 0432 766 766
– [email protected]

Let them know Michael Chan From Shape Home Loans reffed you and they will look after you.

Regards
Michael

Ill list the pro/con of each structure – hopefully it provides a solid answer to your questions…
The trust i be focusing here is the common FAMILY trust only + with a personal trustee ( compared to corporate) – another trust and structures works differently and have their associated pros and cons.

Buying under personal—-

**Pro**
– Land tax threshold
– Negative gearing benefits
– Capital gain discounting/ waived
– Deprecation
– Any lost can be carried forward to your personal income assessment
– No maintenance cost / set up

** Con**
– Profit taxed at personal full rate, so if your a high income earner then it’s >40%
– Income split and tax benefits are set as per sale contract
– Personally liable for the property/mortgage

— Buying under Trust with Personal trustee—

**Pro**
– Not personally liable, the trust is – which is a separate entity
-Ability to split the income as you wish to the nominated beneficiaries
– Being a separate entity the land tax threshold starts at the bottom again ( only a pro for investors with over 1.5M in property under their personal)

**Con**
– Any lost can NOT be carried forward towards your personal income assessment
– Maintenance and set up cost (low)
– Capital gain tax at full rate

—-

Regarding what your accountant is saying- it’s hard to comment as your accountant is the professional + he knows your personal circumstance. But taking a punt – > If the property is NOT positive geared enough then you will NOT see any benefit using the trust BESIDE the asset protection benefit.

Example: ( average cost/ sample only)

Rent received – $300 per week = $15,600 PA

Depreciation benefits = $4000 PA
Interest repayment = $11,000 PA ( 6.55% -80%LV)
Bank fee and charges – $300 PA
Maintenance issues/strata/ repairs/ Agent fee- $2500 PA
Insurance- $500 PA

Cash flow = $2,700- ( Negative)
You will get $0 from the trust, as this lost can not not carried to your personal income.
It will take a while before your rental catches up to become positive.

Your accountant saying $70,000 is a bit “open”…he should have told you and given you a figure for the rental yield.

Because i can can have $70k income in rental btw 2-3 properties and still make a lost, but with 2-3 properties it will be much quicker for the rental to catch up.

Regards
Michael

Jamie is right.

Emerald and Gladstones are two of the fav hot spots for positive geared investors! but it comes with it;s associated problems

1. Not easy to get 95% funding for these areas especially with tight serviceability
2. Valuation is alwasy a hassle and takes a while to come back for both these ares + seems to fall short 75% of the time due to the fact the property price are driven by the rental yield and stability of these rent.

Hopefully you haven’t signed the contract yet..

Regards
Michael

Hard to say without knowing the area, property and demand of the area…but for me personal; if i see a property with the above range, i would offer $460,000 the offer is not that much outside from the “targeted” range + it’s still a serious offer ( didn’t low ball too much ) – Also dont be put off by the advertised range- i seen plenty of property go over !! and on some odd occasion under.

Regards
Michael