Different lenders have different policies so you need to ensure that your situation fits in with the lender's requirements. Some lenders do a maximum of 3 units within a title and some do 4. Some have 90% LVR restrictions and so on. What are the details of the loan and security amounts?

Regards

Shahin

Hi Dave,

What is your is the loan amount of each property and the approx value?

Regards

Shahin

Are you purchasing the units individually or under one title? 

Fixed rates are currently very attractive – there is no denying that. I lot of people who have a lot of debt are fixing at least a portion of their loans. Also from a risk mitigation perspective it may be a good strategy particularly for those with high debt levels and/or instable work arrangements. The flip side is that you lose a lot of flexibility. The PPOR debt is 'bad debt' i.e. it is not tax deductible. So you want to pay this off as soon as practically possible.

If you jump into a fixed loan then there is a limit to what you can repay in a year. You need to get specific advise but you may need to consider fixing a portion of the loan to give you stability that the repayments are going to be a certain amount and to help with risk mitigation and then have a portion of your loan as Interest Only with a linked offset so any excess funds can be accumulated in the offset loan. The other benefit of this is that you can accumulate the funds in the offset to help facilitate the purchase of an IP in later years.

There is nothing wrong with putting in a low offer – however there are some strategies you can employ to better your chances.

1. Get your hands on recent sales that will help your case and a reason why you are putting in that offer. 

2. Building defects. If you have an eye for defects then point them out. For example, termite damage, structural building issues, etc. 

At the end of the day – if the seller doesn't want to sell below a certain price then there is so much you can do however certainly try doing the above.

Regards

Shahin

Hi Sam,

Try Wincrest homes – they will ask for the plans so you will need to email this to them for them to provide you with a quote. 

There is not a lot of builders that do custom designs and those that do charge an arm and a leg.

Regards

Shahin

Hi Sam,

You are looking at around $1300 per sqm. Do you have DA/CC? Also what area of Sydney are you building as that would dictate the type of duplex you build and thus the builder.

Regards

Shahin

Ok so lets assume your property value is $350k – then the equity you have @ 80% would be $130k (i am not factoring the redraw amount). This would mean you have at least $130k to contribute to the purchase of your next IP. This also means that with a deposit amont of $130k you can purchase a property (without paying LMI) for about $520k. So from an equity/deposit point of view you have no issues. Now you need to ensure that there are no issues when it comes to your serviceability. 

The benefit of the IO in this situation is that you are accumulating the principle repayments on the side yet still paying interest on the loan amount minus the accumulated funds sitting in your offset. Depending on your future investment strategy this can be beneficial in helping to fund for future IP purchases or other things such as renovations.

Regards

Shahin

Wow – I genuinely thought they were new cupboards. Nice work.

Hi Daz,

Suncorp is one of the harshest when it comes to servicing – however a lender like Westpac is quite good especially when using rental income and negative gearing benefits in the Servicing calculation. Based on the information you have provided above – there is no reason why you will not be able borrow the amount requested with at least several lenders.

Is the proposed $600 per week rental appraisal from a Real Estate Agent? Also do you have a building contract from the builder (I am assuming that they are a licenced builder)?

Regards

Shahin