Most Banks will propose a P+I loan. Make sure you take out an IO loan + an offset account.

Cheers
Andrew

It could be worth it to get a valuation done on it using a hypothetical development.

Cheers
Andrew

I think you are mixing things up here. You can only use the equity in your IP for your PPOR. However I would advise against that.

Given that you want to purchase a 500k unit first as a PPOR and then later convert it to an IP and purchase a 1m house as your PPOR, I would do the following:

1. Take out an IO loan + offset account for the unit.…[Read more]

Hybrid and Unit trusts also don’t necessarily offer you asset protection because the Units issued can be considered an asset.

Has anyone had any experience with the Property Investor Trust?

Cheers

Andrew

OP signed up 50min ago and posted their first comment.

Hatice Martin signs up 10min later and posts:

Hmmmm….

Then there is the 10 year rental guarantee…

Developers who usually provide rental guarantees add this cost to the price. So pretty much the owner is paying their own guaranteed return and at the same time is buying an over…[Read more]

Since the article was based on a survey which was conducted on millionaires, I was more interested to see some more specific figures:

* % of millionaires that bought investment property in 2013 and over the last 3-5 years, to see the trend
* % of millionaires that own more than 3 properties.
* etc

Cheers

Andrew

About 77 percent of investors with at least $1 million in assets own real estate, according to a survey released today by the New York-based investment bank’s wealth-management unit.

Does this include their home?

Cheers

Andrew

Hi Mercury

Welcome to the forum.

You don’t necessarily have to sell your property. As it grows in value, you can access the equity and purchase other IPs. This strategy can allow you to keep this property always negatively geared and reduce your tax. New IPs can be purchased using a different ownership split and/or maybe using a trust (depending…[Read more]

Same with http://www.cashflowcapital.com.au

The few properties that they are listing on their website are also new properties or off-the plan, so they could be receiving commission from developers for these properties.

When hiring any consultant/adviser, it is important to know how they get paid and who pays them because that person will benefit…[Read more]

This website only lists new developments. They might get paid by the developers.

Cheers

Andrew

Ask them for a list of properties they have sold in the last 6-12 months and check if they are similar to yours.
Then you can get an idea if they know how to sell/market your type of property.

Talk to at least 3 different agents.

Cheers

Andrew

Hi Swifteagle

I’m assuming the house is your PPOR?

Why not purchase an investment property?

You could comfortably buy an investment property around the $500k mark with your savings, depending on your income level and how aggressively you want to borrow.

You would do this by:
1. Paying off your PPOR mortgage using your savings in the offset…[Read more]

I wouldn’t say that wars or other bad things are caused by religion. It’s the people that use religion as a reason to go to war and do bad things.

Some people need to believe in something for them to lead a happy and fulfilling life. May that be religion or a way of living, etc. It’s hard for some to live life without having an explanation why…[Read more]

Hi BNS

Welcome to the forum.

To answer your questions, yes to 1. and no to 2. The interest on your PPOR is non-deductible therefore it’s better to reduce your PPOR debt or have no PPOR debt if possible.

3. depends on how much income you are generating from other sources, how many properties you are planning on purchasing in the future and your…[Read more]

Sounds like bs to me.

I wouldn’t change the offer. The price you offer needs to leave you with enough profit when you develop. If they want more then move on to the next property. It’s not worth it.

Don’t get emotionally attached. Just look at the numbers. If they don’t add up then there is no deal.

Cheers

Andrew

Did the RE actually mention $1m+ for your block or blocks in general in the area?

The block of flats next door is most likely zoned MR for them to be able to build 6 levels. LMR is restricted to 3.

To answer your question: What prices do developers pay?
Like everyone else, the lowest possible. They need to keep their costs as low as possible and…[Read more]

Yes. That is only one part.

You also need to determine whether it is worth it to develop in the area the property is located. Is there an under-supply of properties? Look at vacancy rates and rental growth rates. What other developments have been approved or are currently being constructed in the area? Maybe there will be an over supply in the…[Read more]

Thanks guys. Any positive and negative feedback is welcomed. It will help me improve the application.

Cheers

Andrew

Hi James

Welcome to the forum.

Yes. You can use equity in this property for the 20%. This would allow you to borrow 100% without LMI.

Cheers
Andrew