All,

Providing a loan sounds easy enough, but if an investor lends to someone for non-investment reasons (including PPOR) then they need to be VERY careful, as you may need a credit provider’s license. See more here: https://asic.gov.au/for-finance-professionals/credit-licensees/do-you-need-a-credit-licence/

Dale, I wish you every…[Read more]

Hey Scott,

Thanks for your post, and welcome to the forum. Thanks too for your encouraging words; I’m glad you liked the books.

It’s interesting to read through your logic. I agree you are in a good position, but to be honest I don’t like the idea of buying a 1Br anything. That is usually the bottom of the market – cheap to buy, cheap rent,…[Read more]

You have some savvy people who have responded already.

All I would add is to make sure your loan product fits within the flexibility and features you need. Lenders sometimes sell you a loan ‘burger with the lot’ (which is top of the line expensive), when all you are really after (and need) is a cheeseburger.  For instance, fixed loans sound g…[Read more]

Hi there,

Some investors I know swear by NDIS, but in my opinion, any investment that is only ‘made good’ by tax incentives needs to be examined suspiciously.

Specifically in respect to NDIS, I wonder what impact the requirements may have on your ability to exit – to whom, and how much.

You can find out more about NDIS investing…[Read more]

Hi there,

Some investors I know swear by NDIS, but in my opinion, any investment that is only ‘made good’ by tax incentives needs to be examined suspiciously. One of my rules is: don’t let the tax tail wag the investing dog.

Specifically in respect to NDIS, I wonder what impact the requirements may have on your ability to exit – to whom, and how…[Read more]

Hi there,

Some investors I know swear by NDIS, but in my opinion, any investment that is only ‘made good’ by tax incentives needs to be examined suspiciously.

Specifically in respect to NDIS, I wonder what impact the requirements may have on your ability to exit – to whom, and how much.

You can find out more about NDIS investing…[Read more]

Hey Harley,

It sounds like you might be better off with the services of a buyer’s advocate to find you something, but I must say I am not very enthusiastic with the strategy behind your investment. It looks like you are trying to buy, rather than make, your profit.

If that is the case, you are relying on the area more or less alone to drive y…[Read more]

Worth a try Tony, and I wish you all the best. Sadly, I think I can hear the sound of silence from here though.

I wrote to my local member, Josh F – the Treasurer – about my concerns with the NCMCC, and his reply – more than a month later – was stock standard “refer to the legislation”. Slightly more than useless.

I think your better option is…[Read more]

G’day,

Hmmmm. This is something I would definitely pay some money to a good town planner to discuss, as you may not need a building permit, but I would expect you will at least need a planning permit.

Get in touch with the friendly folks at: http://www.townplanning.com.au

Alistair Perry should be able to point you in the right direction.

– Steve

G’day Pascoe2.

Yeah, this is one of the many, many, many complexities that the, IMHO, poorly thought out NCMCC has constructed.

Have you read what I wrote at the link below? There is also a very handy flow diagram I constructed at the same link.

https://www.propertyinvesting.com/covid19/

It seems to me the following principles would apply re:…[Read more]

Oh Susanne.

This sounds horrible, and I’m sure you are feeling quite anxious and stressed. Hang in there… I’m confident a solution can be found.

First of all, building disputes are incredibly common. In fact, I think if there was ever a building contract that didn’t have some wobbles, I would be amazed. Just look at the State government and…[Read more]

Yeah, if I’m reading the post right, and you are asking how you can prove you lived in a house as a home when you didn’t, then I’m totally uncomfortable making a declaration that you know to be false. That’s straight tax-avoidance. Also gaining a financial advantage by deception. Just pay the tax and give thanks you live in a country like…[Read more]

Yeah, if I’m reading the post right, and you are asking how you can prove you lived in a house as a home when you didn’t, then I’m totally uncomfortable making a declaration that you know to be false. That’s straight anti-avoidance. Also gaining a financial advantage by deception. Just pay the tax and give thanks you live in a country like…[Read more]

Haven’t seen anything sorry Sue.

Not sure how much lower interest rates can go. And if investors can’t make money where they are now, then there probably isn’t much hope that they’ll do better at 100bp lower.

– Steve

Thanks! :-)

Okay, I’m not a conspiracy theorist, but I have to admit to some serious reservations about downloading an untested app, without sufficient privacy laws in place now, and with a government that is making policy up on the run who is bribing us to download the app with promises of ‘we will let you all out of lockdown sooner if you have it.’

This…[Read more]

I think we’ve created a ‘success problem’, namely that while we might have low cases, the rest of the world more or less doesn’t.

Can we live in isolation? Yes. Can our economy and pre-COVID-19 standard of living survive isolation? No.

The question I keep coming back to is this… what happens when we open the borders?

It seems to me that the…[Read more]

Hmmmm. Even with the ‘brakes’ eased, the increasing loan book risk is likely to cause lenders to lower LVRs and increase credit qualifying criteria.

Beyond that, is getting into more debt really the answer? Short term fix for long term pain.

– Steve

Yes, aside from financing (liquidity for commercial property is drying up), you need to assess a tenant’s ability to (1) pay the rent, and (2) pay the outgoings, and (3) survive post pandemic.

Given commercial property is mainly about income, the quality of the tenant and their ability to pay is a real risk.

It is likely that commercial property…[Read more]