you know how buying a house you can basically say you’ll need 10%, 5% for closing and 5% for a deposit. (for the average person)

i was kind of hoping for that type of answer / a estimate in price / a ball park figure. because the RE agent main negotiation was that the seller is considering putting these permits in place to try and sell to a…[Read more]

you can rent a PPOR out for up to 6 years before it is considered a IP?

and i’m pretty sure you don’t have to live in it when you first buy it to be a PPOR. as in it can be rented out at the start.

thoughts terry?

well the way i see it, my mum has 5 negatively geared properties (capital growth properties)

which she bought all in her own name. but for my own circumstances seems silly because after the first 10 years they will hopefully be neutral and then after 10 + years they will be cash flow so you will have to pay income tax rather then company tax.…[Read more]

I’m looking to purchase neutral / cash flow from day one properties.

why do you ask?

Cheers, Tom

if you friend is getting the loan and is on the title of the property and the first 12 month he is renting it out to you to maximise the negative gearing strategy. i would have thought that at some point he would actually need to live their 6-12 months to legally prove that it is a PPOR and not a IP for capital gains exemption.

ok good to know thanks

Also Richard, I am wanting to purchase my first IP in a company / trust structure. i’m based in victoria if that makes any difference

Thanks Terry, insurance as in landlord insurance?

how would i get a 100% lend? what is a TD collateral?

Hi Terry,

I think my wording was a bit wrong when i said “buy” but yea thats what i thought. so he would have to show that he could service both mortgages.

Cheers, Tom

I’m a bit confused and just wanted to clarify a couple of things

1. the seller does not live in the property.

2. there is a tenancy agreement in place ($400 a week)

all i was saying is that if the tenants living there are renting out the granny flat for cash.

could you guys see any legal problems?

like i said i would have thought that if the…[Read more]

Hi Terry,

I’m trying to buy a property cheaper then the traditional way (if possible). thus being i would save on stamp duty. wouldn’t have to get a loan and so on.

i feel that if i had a POA and the bank giving him finance for property (B) when they see that he’s still on the title and mortgage of property (A), he wont be able to get finance,…[Read more]

and would their be a problem doing it this way for a long term investment?

Thanks guys, much appreciated!

Hi Jamie,

Thanks for the reply, I’m aware of a protected tenant. but being that their would be a tenancy agreement in place for the dwelling and the granny flat being on the same title. I’m just asking what type of problems you could have? with this type of situation?

worst case i see is that the tenants (who live in the property) move out and…[Read more]