Hi John,

You have a 20% deposit – is this based on a purchase of $360k or $400. If you purchase a property for $360k and its worth say $400k then the bank will take the $360k as the value of the property (if not less if there is something blatanly wrong with the property). This need pushes you into LMI territory which is another ball game. You need to factor this and ensure that you meet the LMI conditions. 

The second thing to consider is the CGT – ie if you purchase the property for $360k instead of $400k then the CGT payable is on the difference of the amount you purchased.

Regards

Shahin 

Your broker will be able to tell you how much you can borrow across different lenders (different lenders lend different amounts). Based on some conservative assumptions, you can borrow well above $500k.

Regards

Shahin 

Ok would be interested to see how you went so either PM or email me.

Regards

Shahin

Hi Costas,

I can't give you advice but I can give you my 2 cents for what its worth.

I have a few investors who have purchased in Noble Park and they tend to look at the North /North East areas. They also look at properties that are within walking distance to the station.

Not sure what your definition of a solid investment is. Does it have a good rental yield? Its not bad but you can do with a bit better yields. Does it have solid tax benefits? Yes, it s a new dwelling so you will do with it comes to depreciation. Does it have CG potential beyond the traditional CG growth? I don't think so. It looks like a new dwelling on a very small block so you are paying for the construction not the land. I may be mistaken though about the land size.

Regards

Shahin

Hi Nathan,

We have access to APM reports which is quite similar – I have emailed you the property report.

Regards

Shahin

I wasn't suggesting getting the home builder to design – I was suggesting to use the existing home builder designs than getting a custom one done up. Also when you say a single storey townhouse – how many sqm are you talking about?

Hi Colin,

I had a buyer purchase a brick house close to the station at MD for $312,000. The block was about 500sqm. The rental return is $360 per week. 

Regards

Shahin

There is nothing wrong with using a buyer's agents. The only thing is that the cost is unfortunately not tax deductible. What's your purchase budget? 

Regards

Shahin

I deal with Wincrest homes. They have built on 3 sites for me. I have an investor currently building townhouses with Metricon. Very few will build off client's plans (Wincrest is one of them).  

1. Settlement

2. Settlement

3. Not that easy. You either need to get the vendor to agree to the change or get your solicitor to organise a stat dec for the transfer of entities. I went through something similar last week and its an absolute pain. The purchasor was also whacked with a $7k bill from his solicitor for the 'extra work'.

4. Depends but usually 10 days. You can sign a 66w and waive the cooling off period but I do not recommend this

5. Need to clarify what you mean