Based on the number of properties you are wanting to purchasing and also your income/cashflow – you need to implement a strategy that will give you access to equity quickly. This may come by way of a renovation but some of the most common strategies have been to purchase a property with the strong possibility of subdividing the land in the back of the property and either building or selling which in turn pays down the mortgage giving access to equity and/or higher yield. Before you rush into buying a property – look at it like a business, have a strategy and crunch the numbers. Also have a good understanding of the local council guidelines.

Which areas have you been looking at?

The LMI will not be transferrable. Why do you want to refinance? Is it because of the rate? If so, then most often you can can get your current lender to match the rate on offer. If its policy related then thats a different story. When did you purchase the property and who is your current lender?

Hi Ilya,

Welcome to the forum. Studios are one of the worst possible investment options.strategies. Look at the strata associated with the property. I dare say that the yield doesn't look as interesting as you thought. Secondly, you are taking a gamble with the times of investors, more frequent tenants instead of established tenants. Thirdly, ask yourself how you can add value for look at capital growth on the property. 

I would strongly suggest you talk to more investors, crunch the numbers (outgoings vs income) and also speak to local RL agents. I think you should look at  2 bedroom unit at a minimum even if it means looking outside the Melbourne CBD.

Regards

Shahin

Is the IP in Camperdown a 1 or 2 bedder also what would you paying for strata? On the face of it I dont think the numbers will add up. Good idea staying away from off the plan and new developments because the strata on those developments seriously kill off any yield.

What does the site look like? i.e. flat, slopped, soil, rock? how much excavation is required? etc. What type of house are you building? brick veneer, double brick, standard finishes, high end finishes, whats the sqm of each dwelling? what's the flooring?

Good work. That is correct linking the offset to the 'bad debt' being the PPOR. 

Hi Matt,

Yes you can use the equity in your parents house – there is 2 different ways to do this that will give you the same outcome (i.e. the equity). 

Yes you will need to live in the property first to be living the property first. It also depends on the state and the type of grant. There is a grant in NSW that is designed for investors and new homes.

Make sure you go with a lender that can handle more than 2 offset accounts such as a Westpac instead of a lender who cannot such as ING.

There are a few lenders – I use predominately use NAB for these types of scenarios or Bankwest. However be mindful that lenders look at many other things such as the location of the security. Townsville is fine though in terms of security location.