Sounds like a big mess…

I would be talking to another accountant/solicitor or 3 to ensure that the course of action you about to undertake is definitely the best one for you, to avoid any costly repeats.

Should you need a loan, you may qualify for a Lo Doc equity loan of some description. There’s a plethora of them nowadays, from virtually all…[Read more]

With commercial loans/property, rule of thumb is most lenders will restrict you to a 70% LVR. (for documented loans. For Lo Doc Commercial loans be very careful – they get ugly pretty quick..)Tenant usually pays all the outgoings, rates, water, etc, in addition to the rent.

Another rule of thumb – price should be reflective of 10% rental return -…[Read more]

Elsa, If you have only just settled selling the unit might be a costly idea – capital gains tax might apply, agents costs to sell, etc. There’s not enough information in your original post to give specific info or ideas to what you can do – the correct course of action depends on a number of things.

If I assume rightly, you need to give back the…[Read more]

2 Questions to ask youself – 1) is there a DEFINITE option to redevelop/rezone and is it realistically going to make you lotsa $$$ at some stage with all costings, etc taken into account, and 2) How will you feel if you lose the property (and the $$$$ potential) for a lousy $10k.

If the answer to Q1 is very positive, haggle like crazy but don’t…[Read more]

Why not buy it in conjunction with them? When they’re ready they can buy out your share for an agreed ( a greed?) price, depending on how much of a buck you want to make off your Mum…

theloanarranger

Waz11, small deposits mean you can spread your cash over more properties, etc. However, do your sums on the 100% lends – establishment costs, (generally) higher rates, restrictions as to location, etc on these types of loans can well and truely offset the advantages of putting in little of your own $$$$. Good luck.

theloanarranger

Re Goals: Picture your favorite AFL/ soccer/basketball/waterpolo/etc team playing.
Now take away the goals – wattaya got? A bunch of people playing around, making passes at one another. And when the match is over, all they’ve got to show for their efforts, (ok, apart from increased fitness and maybe some new friends..) is they’re pretty tired and…[Read more]

The short answer – no. Don’t own it – can’t claim it..

theloanarranger

This has happened to a few of my clients – in essence, a computer glitch/funds transfer stuffup/something similar occurs, and your repayment isn’t deducted on the due date – hey presto! you’re in arrears. Their computer does not retry until the due date next month, and then only takes the scheduled payment, you’re still behind, and their system…[Read more]

Mortgager Insurers – the bane of my working life, hate-em-with-a-passion, etc,etc – are carrying the risk. The lender would be happy to lend whatever % wherever, as the MI will carry the can and the $$$$ if/when the borrower defaults or takes off, etc. The MI may have decided the area may be on the decline, the security property might not justify…[Read more]

Up front – I am closely associated with a Private Sale co (FSBO Aust) and strong avocate that most people (not all, but the vast majority) should consider sell their o/o property themselves. The savings (tax free on the family home) are very substantial – an average last fin year of $15k within Sydney metro. And, I might add, with LESS time…[Read more]

Ok, if you put down 20% (+ costs)and it’s +CF would suggest 3 or 5 years I.O. no frills or honeymoon loan. Your choice of lenders will be limited to those happy to lend to you here on a property in NZ.

To redraw equity I assume you believe the value of the property will increase fairly quickly..?
Should you want to draw money out you would have…[Read more]

Hey John,

It would help to know if you have an owner occ property – is that the equity you will be tapping into? If so, simplest would be to get a line of credit on that up to 80% of valuation, and use the excess over any existing debt for a deposit (20% if possible to avoid Mort Insurance costs) and get a cheap as chips I.O. loan for the…[Read more]

Just a thought..

I’m a strong avocate of selling privately, although with IP’s it’s far from straightforward. BUT when you decide to sell, take the time to write to your tenant, and give them first option. (After all, they must like the place – they chose to live there). Not a great chance of success, but phrased correctly the letter will keep…[Read more]

Different strokes for different folks. +CF vs neg geared will always raise an argument. I’ve got both, each aquired for different reasons.

+CF props DO allow you a lot more scope though, i.e. instant income, additional borrowing capacity, etc.

theloanarranger

Inspirational post. I still smoke, despite years of thinking/considering, but never really DECIDING to give up. Got a whole bundle of excuses as to why I can’t give up just yet (I know, I know – even I don’t believe half of ’em..)

Giving up for the $$ savings alone doesn’t work for me – I’d still buy at twice the price, despite realizing how much…[Read more]

Hi Ret,

Far be from me to push my own cart, but I am in Sydney and been broking for many years. Know property, as was formerly an R/E agent (prior to deciding ethics more important..) and now a senior consultant to a R/E Private Sale company. Am more than happy to discuss any and all scenarios. Find me at donc@thinkhomeloans.com.au or on 041…[Read more]

Can be useful as a snapshot of the market 2 – 3 months ago.. Their growth forecasts can be useful to clarify your own crystal ball.

theloanarranger

Hey Scullie,

A coupla quick thoughts – if you are keeping the old house as an investment with debt level of $140k, it would go close to being +CF on those rents you mention. Suggest you change your repayments to Interest Only on this loan asap – there is no point reducing this debt if you are going to keep it, and about to have a large debt
on an…[Read more]

Maybe it didn’t trust the road in their JV?[confused2]

theloanarranger