What's your definition of overpriced? Also re the subdivison and construction – I can't see good margins there – how are you finding it?

Regards

Shahin

Equity can be accessed for the purchase of multiple properties. The assumption is that there is adequate equity to do this since the loan is completely paid off against the current property. 

It is important that the facilities are standalone and that the interest is not contaminated between the IP's/purposes. The strategy then is do you go 95%, 90% or 80%. This requires a lot of research and discussion. This is a common strategy for a lot of investors.

Regards

Shahin

Colorbond fencing is a bit tacky in my view however they are far more durable than palings. Make sure you also get a few quotes.

Regards

Shahin

That is ridiculous – how are you expected to put in an offer if you don’t have visibility of the COS? I would politely move on. What state is this?

Regards

Shahin

You have several options here. Many banks will do non genuine savings to 90% plus LMI. 

If you have been renting for 12 months – there are many banks that will consider this as genuine savings.

You have a few options so compare the products and see which ones works out best. There may be other factors you need to consider like servicing etc as generally those lenders that do 90% plus LMI non genuine savings have conservative servicing. There is only one lender that does this and has good servicing but you need to ensure that the application is strong as they have hard credit scoring.

Regards

Shahin

Many serviced apartments have a condition in the clause where you cannot live in the property which many lenders consider as unacceptable security. There are only 3 lenders that will accept this.

Several lenders do serviced apartment but it is dependent on a number of things:

1. Is it pure investment or can you use the property as PPOR. If there is a clause that you cannot use it as PPOR in the lease agreement then you knock out CBA, Westpac, Macquarie and a handfulof other lenders leaving you with Citibank, Widebay and St George. From that selection many will have a policy whereby they will only finance up to 25% of the units within the complex.

2. Must be fully contained

3. Different lender will do different LVRs

Here are the Pros and Cons:

Pros:

1. Great net cashflow

Cons:

1. Hard to resell

2. Finance is extremely difficult for reasons mentioned above

3. A firesale in the complex and you are stuff when it comes to drawing equity on the property or refinancing

Overall I would strongly suggest avoiding SA's as an investment vehicle.

Regards

Shahin