There are different types of defaults. Telco defaults are viewed more favorably than financial institution defaults. Defaults under  $1,000 are viewed completely differently to defaults over this amount.

Your credit card debt of $10,000 falls into both categories that are viewed less than favorably. 

Questions:

1. Why did the default occur? Was it your fault or someone else's fault?

2. How long did it take you to pay it?

3. What is the LVR on the loan?

4. Are you applying just in your name or with another applicant?

Regards

Shahin

Personally Gold Coast is not my cup of tea and I have been looking at it over a long period of time. I can think of a dozen places that tick more boxes in terms of Equity, cash-flow, renovation, etc plays. 

Why are you looking at the GC and what is the strategy?

Regards

Shahin

NRAS is great but good stock is extremely hard to find. The last thing you want to do is to work with negative equity.

Pros:

1. Up to 10 Years Tax Free entitlements of approx $10,000 per year

2. Good Depreciation

Cons:

1. Due to the above benefits – many of the NRAS stock is notoriously overpriced which means you are working with negative equity day one. 

2. There is a risk that the government may pull the incentives above however I personally think that this is unlikely. 

3. Finance is available up to 90% rather than the traditional 95%

Regards

Shahin

I have got my eye on a property currently in the Maitland area – its a reno, equity build, positive cashflow play. Its going to auction so hopefully there is not a lot of competition. 

You need to always keep your eye out for a bargain when it presents itself.

Regards

Shahin

If you are in the building game then different story but if you were going to get a builder to construct the above the obviously it would be much more. 

Good strategy though – have you validated the sale price with a few agents?

Regards

Shahin

Are you planning to purchase the property from your dad and then develop it?

Regards

Shahin

Floor size similar to a studio and hardly any living area even for a 1 bedder.

Regards

Shahin

That's great! You would be surprised how many people still going ahead with OTP purchases even though I explain the risks and cons.

Do the numbers and work on alternative strategies.

Regards

Shahin

Here is a quick snap shot on the pros and cons of OTP:

Pros:

1. High depreciation benefits 

2. Able to secure a property today with little deposit and can settle at a much later time say 1 or 2 years

Cons:

1. No guarantee when the property will be finished and normally it never finishes when the developer says it finishes

2. Workmanship is generally poor and you don't see it until its finished

3. Strata starts out relatively low but rapidly increases overtime (as little as 1-2 years)

4. Usually you pay a premium for the stock

5. Valuations are a massive risk when it comes to finance – this is less evident in Kuring gai constructions and more evident in an area like docklands neverthless a risk 

6. Very little room to manufacture CG as it is a brand new dwelling (this to me is actually the biggest bug bear)

Regards

Shahin

Depends on the area but easements are a common point for people to negotiate. 

I purchased a property in a very affluent area simply because it had an easement running through the front. It just happened to be located in an area where I wasn't going to build anyway.

Regards

Shahin