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Mick C
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December 21, 2011 - 8:01 am
Depending which state your in – you can transfer names btw the spouse without having to pay stamp duty for the transfer; but certain conditions must be met as well; most of the time if you declare it’s for “tax” reason it be a big no no and your expect to pay stamp duty.
More info for NSW below ( not sure which state your from…)
http://www.lpma.nsw.gov.au/about_lpi/faqs/land_title/paying_stamp_duty_on_a_transfer
Regards
Michael
Mick C | Shape Home Loans
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Mick C
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December 21, 2011 - 3:22 am
Charlie i tell you a bit abt my situation as In 2004 i was in a very simliar situation to you Charlie;
18 years old
Financial Mathematics undergrad degree
Don’t want to work for the man
Keen entrepreneurial spirit
1 part time job = $22K/year
+ running my own online retail business – $15k/year
No debts
At a young age i been interested in property investing ( since my parents are part time- property developers ) so i knew what i wanted, where to buy and how…it was a matter of getting the deposit – i didn’t want my parents help with the savings so i did it the old fashion way—save like crazy!.
Bought first place at 19 with the help of my parents as servicing guarantors ( deposit all came from my own savings).
After uni; worked for GE money and CBA full time for the next 2 years ( + my online retail business )- bought a few properties during this time due to stable income ( full time perm).
Get your first full time job first, but continue to read and look at real estate and locations of places you would feel comfortable investing into, then when you pass probation and your in the position to buy! go for it.
You could use your parents as deposit guarantors if you wish and they are happy to do so; it’s a personal choice- there are associated risks
Sometimes taking it nice and slow wins the race; as you said you have time on your hands- no point rushing + why can’t you die straight in and STILL work at the same time?? that’s how most ppl do it…it’s not possible to dive straight into IP and retire from the workforce so soon.
Regards
Michael
Mick C | Shape Home Loans
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Mick C
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December 21, 2011 - 12:23 am
It doesn’t hurt to speak to a broker- as most are free. Most of the time if your current lender is offering a good rate or we could negotiate one that is close enough to the lowest market rate; we would suggest you stay with your lender UNLESS;
1. Your not happy with them?
2. Rate is above the market average
3. Condition of the loan does not work to your advantage ( ie cross-Securitisation)
4. Does not met your expectation
5. Security type is not acceptable to that bank
6. Serviceability issues
7. LMI is involved ( worth while to shop around for diff LMI prices)
8. Over exposure with that one bank already – investors.
9. The banks policy does not fit your short or LONG term goal ( important)
10. The banks product does not suit the type of structure that you need
11.more…
Regards
Michael
Mick C | Shape Home Loans
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Mick C
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December 15, 2011 - 2:39 am
LMI is not the end of the world- it can work to your financial advantage in the long term if structure correctly and done with the right lenders + good balance of % and deposit bwt the 2 places.
Ideally you want to push the LMI towards the IP, but not to much as there are different level of cost when you go over a certain %. Also 2 another options comes to mind
1. there are lenders that offer’s no LMI at 85%. At if your a doctor or a CPA ( 5 years +) you can get NO LMI at 90%.
2. Lenders that offer a Credit card at home loan rate on top of your HL – you can use this Credit card as your next deposit and you can structure it in a way so that the credit card is a separate account to your HL ( like a LOC) so that it can be tax detectable as well.
Regards
Michael
Mick C | Shape Home Loans
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Mick C
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December 15, 2011 - 1:04 am
You know you can arrange with the agent to have some of your builders/ tradesmen ( find them in the yellow pages) come out and quote for the job- before you sign the contract. That way you have a fixed quote for that EXACT job.
Regards
Michael
Mick C | Shape Home Loans
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Mick C
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December 15, 2011 - 1:02 am
Von Krumm wrote:
Wow. Everyone so negative? The days of owner builder are gone… what a load of crap.
Not negative- cautious.
And none of the post are suggesting owners builders are gone; in fact they are saying it’s good IF your in the trade or have some basic experience, time, good management and don’t get to attached emotionally.
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
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Mick C
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December 14, 2011 - 12:40 pm
It’s like me posting a picture of my car and asking you how much is it worth; without telling you the make, model, year, km etc..
Regards
Michael
Mick C | Shape Home Loans
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Mick C
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December 14, 2011 - 12:39 pm
1. it be hard to geared the amount your after if it’s paid in full – as it wont be considered a “purchase” or a “STRIGHT refin”it be considered as cash out…
2. Can be tax deductible as long as it’s a IP to start off with and doesn’t change during the transition period.
3. Lenders do accept power of attorney- just a matter of speaking to the right ppl from credit who has done this before
If anything speak to the agent before auction and ask for a “Extended” settlement period if you win!
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
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Mick C
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December 14, 2011 - 12:27 pm
Unsecured personal loan is not cheap. unless you can bring in NET return of 14% as a Min i can’t see how your going to make money from this. Just my personal thought/
Better way would be to borrow from one of your family and friend; if they have “equity” in their property- they could borrow and draw on the equity from the bank a rate of 6.5% and you could repay them back at a rate of 8.5% for example.
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
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Mick C
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December 13, 2011 - 12:35 pm
Our company in association with Salvation army and two of the biggest tax agency will be running a free property investing seminar in the Gong next year- no set date yet but it’s around Sept for the Gong.
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
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Mick C
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December 13, 2011 - 9:41 am
Housing fanatic wrote:
The question im posing is how beneficial is to seek advice from financial advisors, morgage brokers etc in respect to investing in property. I am keen to learn all about finance, loans and finance, correct property management etc and trying to find the best way to go about this.
Cheers Paul
Comes down to personal choice and experience. If you have no idea what your doing or there is something about your file or what your purchasing thats a bit iffy- your best to get a expert involved; so they can get it right the first time with less fuss and better overall outcome financially.
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
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Mick C
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@shape
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December 13, 2011 - 9:38 am
Yep 2nd Jamie. – he should be able to get you in contact with accountants and conveyancer if required.
Jamie
Pass Go Home Loans Pty Ltd – Australia wide Mortgage Broker
http://www.passgo.com.au | [email protected] | p. 1300 656 299 | PO Box 286 Woden, Canberra ACT 2606
Expand your due diligence – “like” Pass Go on FACEBOOK and get up-to-date IP info http://www.facebook.com/PassGo
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
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Mick C
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@shape
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December 12, 2011 - 12:09 pm
Qlds007 wrote:
Hate to disagree for once with Terry and Michael.
All good- that’s what a open forum is for- honest opinion and everyone have different experience even if it’s for a simliar story/subject- alwasy good to hear both sides…+ you def have a lot more exp then me Richard, so i always got my leaning hat on when i read your post
Qlds007 wrote:
>All boils down to what you think you will invest in but assume it is say a $300,000 unit you could easily cover your 20% deposit, pay your acqusition costs, set up the Bare Trust and still have $10-$15000 sitting in a cash Term Deposit which you could add to by the rent and employee contributions.
Got a couple going thru for forum members at the moment with a lesser balance than that.
You just had to understand the Accounting and annual running costs v choice of investment and potential greater return.
Cheers
Yours in Finance
True, but original poster did mentioned it’s his/her first time investing- not sure if they have the exp to buy something that covers all the cost….they could.
Regards
Michael
Mick C | Shape Home Loans
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Mick C
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December 12, 2011 - 10:16 am
With only $95,000 in SMSF, it may not be “financially worth it”…. the fees etc will eat up any returns you expect to achieve,
Speak to a Financial adviser or do a bit more research; and you will find the running cost on a SMSF can be hefty for such a small amount.
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
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Mick C
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@shape
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Post Count: 1,099
December 12, 2011 - 9:40 am
It’s very common to see ppl spend say 100k on renovations and see the it increase the value by only 50-70% of that 100k…
1. they do the wrong type of ” investors” renovations – the type that adds NO value to the place…instead it’s more a personal preference – ie having a diff colur roof, changing the roof type having a full alarm system, re-painting a perfectly good looking place to a particular color they like- the list is endless…
2. Over budgeting- cost of renovations is more then the market
3. Lack of research on the AREA- not all property depending on the area/location would bring a higher price when renovations are done; because just be aware “market and valuation” price is based on comparative sales….you need something to compare to!
Ie Building a pergola; where the market in the area normally don’t have fancy pergolas…
Regards
Michael
Mick C | Shape Home Loans
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Mick C
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December 12, 2011 - 9:33 am
Quote:
The first thing that comes to mind is my loan structure. Should I be trying to swap over to another bank to have an IO loan with an offset account before I start to consider buying another house?

You don;t need to if;
1. You dont want to
2 . Your current bank will lend you the money/amount your after ( new place)
End of the day you can ask your current bank to change your loan to I/O, in a way your “Refinancing” ( if you can say that) back to your lender; with no financial lost hopefully.
So if your happy with your lender and they are willing to lend you want you need- doesn’t hurt to stay with them.
Quote:
Also, having a limited earning capacity, I have it in my mind that it is going to be impossible to get finance for another property as I wouldnt have the cashflow to service the loan. I think this is my biggest cause for concern as it raises doubts in my mind and prevents me from picking an investment stratedgey
.

It depends on the numbers and how tight your serviceability is- be aware even though you may not service a loan with one lender; it may pass another lender’s serviceability; as all banks uses different calculations and have different guildlines.
In general serviceability ranges from 20%- + bank to bank.
Ask for a list of lender’s your broker is accredited with and ask him/her for the top 5 that will give you the highest amount.
Quote:
start to think that i should buy a house do a reno and sell it off for some 'quick' cash, i also think mayb i should buy in a mining town with high yields so that rent covers the loan, or maybe i should buy a cheap house in the sticks for 80k and rent it out at a high yield. So can someone please put my mind at easy and explain to me how to go about financing the next property, and maybe what the best stratedgey is for somebody in my situation. I have litte savings at the moment (starting to save my cash now instead of payng off mortgage), and am on about $300 a week
.

Get your finance sorted first to a point; before jumping around to different property.
So really find a property type and strategy YOUR happy with and COMFORTABLE with and then your broker to work out how your finance can fit into the whole scheme.
if it doesn’t work….ask your broker for a solution that does- but first and foremost – make sure YOUR COMFORTABLE with the purchase; as your the one buying the place.
Regards
Michael
Mick C | Shape Home Loans
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Mick C
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@shape
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December 12, 2011 - 9:00 am
This could easily be a yes or no answer- and both answers would be right
As you mentioned ” it will vary on the town; riskier or safer depending on what commodity they are related to, how many mines they service, life span of current mines within range, new projects opening etc.”
My personal thought;
When you BUY something with high returns = high risk
When you CREATE something with high returns = Sweet
*create- can come in many diff form, does not need to be construction and subdivision only….
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
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Mick C
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December 12, 2011 - 8:57 am
Dreaming Big wrote:
Hi All,
Can anybody recommend a good mortgage broker with lots of property investing experience and knowledge in the Melbourne area?
We are hoping to buy our first investment property early to mid 2012 and need someone who can help us structure everything right from the beginning.
Give Richard ( Replied to your post above) a call/email ; he may not be in Melbourne, but he will def get you the right loan and structure to suit your needs.
+ he has more then your average 2-4 IP
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
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Mick C
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December 10, 2011 - 4:40 am
Says who??
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
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Mick C
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@shape
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December 9, 2011 - 1:14 am
Hi,
Lawyer / Simple deals + more complex deals and trust etc…
http://www.mcbhm.com.au/ – Ask for Peter Mcbride ( the principle)
Conveyancer – Straight forward purchases
http://www.murphycosolicitors.com.au/ – Collin Murphy.
Note; Collin is not the most “talkative” guy – but he gets the job done efficient, quickly and with detail. ( he does sound grumpy at times, but that comes with old age i guess lol)
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
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Same Banks. Better Rates. Served With a Passion.