Provide a bit more details on your finance- Maybe your max borrowing is $150,000, can’t say without a bit more details.

Asset:

Income:
how long with current employer and Status ( full time/ contractor?)?
Total rental income per week?

Liabilities:

Financial dependent under 18 and number of applicants?
Total Monthly mortgage repayment ?
Total credit card limit
Any another loan?

Structure:
Since it’s been refinance only recently -How are your current IP and PPOR loan set up right now? I/O only? 30 years?

P.s are all your loans with one bank ie CBA??? you may find once you reach a certain limit with one lender that one lender will start to charge a higher serviceability ratio in order to lower the risk. That’s why it’s good for a active investor to diversify a bit in regards to lenders once you reach certain limits.

Regards
Michael

Go to Thailand and live like a king and buy out a whole village

Regards
Michael

Brokers will always (or should) give a reason for their recommendation.

Did your broker give you a reason WHY he placed all the loans with that one bank? ( not a smart investment move due to exposure limit)

Regards
Michael

Block of 4 only can still be done as residential; but the LVR will be capped at 65% ( no GST, no soft cost) — 65% of fixed price contact.
If you want a higher LVR, or GST + soft cost to be included then commercial is the easiest way.

Also NEVER presume that your loan will convert to a standard rate after…because it may not; always plan ahead.
Reason why it may not change to normal product/rate:

1. The lender under their resi policy dont allow muti unit on one title.
2. Lender’s policy
3. Depending how your using, some lenders dont like to refinance from “non-conforming products/lenders”
4. Some may not refinance a commercial loan to a resi loan ( even internally)

So make sure you have a plan set one which lender or product to swap to; after construction.

Regards
Michael

For community title that’s not bad….a lot of banks dont like community title…so as Perry mentioned % rate is one thing, but how easy it is to deal with the lender and get what you want is important as well.

Given that LVR is 70% , commercial rate of 8.5% i would say is good. But you best to plan for an exit strategy after it’s built…ie would the lender place you on their standard rate product? how much would it cost to swap etc…Because 8.5% for 1-2 years is ok…but for 20 years could be a bit painful given it’s 4x town houses only.

Regards
Michael

I heard it’s handy to rent out to “family of long term patients” normally patient’s family who live quite far away….most hospital would have a list of recommended accommodation for patients and their family which you could easily be added to the list if it’s “patients” friendly…ie not on main road, close to hospital and transport, Wheel chair friendly- lower kitchen and toilets etc…

Regards
Michael

Can claim 50% only- but firstly Let’s make sure the ATO will consider this half as a IP- is it Private rent (cash?) or do you have a private tenancy agreement in place?

if it’s private rental then you will find it hard to convince ATO without any legal paper work that this half is an IP.

Regards
Michael

No it won’t.

Name changes in very common, and nothing is being transferred or sold as it’s the same person.

Regards
Michael

Even though it might be residential zoned; there are generally 4 type of zones, not sure how different this is from state to state.

But in Hornsby NSW- Residential zoned 2 C- allows for Mixed business, Surgery, office etc….

Give council a call to find about zoning restrictions etc..

In term of finance; yes rate will be higher…

regards
Michael

What Derek said.

Same as when i was shopping for an accountant, i tested a few ( 3 ) to see how extensive their connection and knowledge of Property tax and trust are but i didn’t allow any of them to lodge a tax return for me, till i was certain.

Regards
Michael