Yes.  If you 'release it' as a separate loan (such as a line of credit) to do so you pay interest on it, and if you cross secure  your home with the new one to use the equity that way, it means you can borrow the extra $50k against the new home as part of the new loan, (essentially allowing you to borrow 100% of purchase price (inc. deposit)  & co…[Read more]

Hi Natalia,Ah, brings back memories…. I digress – it's not so much the technical side or expense that is the challenge (all goes the same place as the bath & sink water!) but rather if you have enough room in the house to do so; either a large bathroom (ideal) area near the laundry, or a alcove area you could use to have a toilet fitted.Cheers

Hi Troy,As a generalization, if you have the funds, AND can handle making the minimum payments while construction is taking place, the reduced stamp duty on purchase, and the maximum deprecation you can claim on a new place would sway me that way.Cheers

HI sri,two of the areas you mention, Bendigo & Horsham are both good for steady but solid growth, and low vacancy rates. Bendigo is one of the tightest places in regional vic at the moment for renting. Stuff in the sub 300k price range is good, and while not CF+ may suit your requirements. Most people have several good applicants for their IP's…[Read more]

Hi gmarksnowdon,You can pretty much insure anything, and minimize or eliminate most risks, but it comes at a price, and with varying conditions. Ie, typical insurance for business people might be key man, buy sell, cash flow, etc, and obvious ones for personal use would include TPD, income protection, and even unemployment cover. I'm assuming you…[Read more]

Hi treborsujTHe income producing side of thins is what makes your property one that traditional lenders and mainstream 'retail' areas of banks will not touch. THat said, the only two banks I would imagine would look at you would be CBA or more likely NAB – and you will need to go via their agri channels, as the retail side , and likely the…[Read more]

Hi Coxy86,One question I would ask is as you mention that you are cadets, does that mean you are with the Navy (of defence forces) by any chance? If so, is your current PPOR finance done under one of the DHOAS home loans? Depending on this, it would factor into how you could perhaps take advantage of this before rushing into a sell or hold…[Read more]

Hi All,Just FYI it is true that in a lot of policies, deliberate damage by tenants or their guest is not covered – and would need to be purchased as an option, (Allianz & QBE come to mind to name a couple) And there is usually a limit on this, of approx $10k. Obviously, if it falls under one of th 'insured events' that is different. SImply put,…[Read more]

Hi Wender,And just another 4c worth – at the moment it is important to be in the market in my opinion – so really what I am saying is don't aim too high – if you buy right, and don't rush in just for the sake of it, it is better to buy a $150,000 house somewhere that that has some steady growth potential and does not cost you much to hold, that to…[Read more]

Hi evernatAgree with devo.There is some good steady growth, and rental is fairly tight for most good places.There are a few no -go zones though. Parts of Bomaderry are suss. Looking at a Nowra map with north wher it is supposed to be, around south nowra/central nowra keep away from the area east of the Princes Hwy between say Park st and Kalender…[Read more]

Yep, JacM is correct – as you can't Bpay a home loan, that would mean it would be treated as a cash advance – which is firstly the worst way to use a credit card other than in emergencies, and as mentioned, does not get you points (but it does in most cases get you paying a higher rate of interest and void your interest free period!)Cheers

Hi Jess,Some lenders will take more than a 20 % variance on your figures upwards and use – but needs to be explained logically – ie 1 st year had XXX amount of set up expenses, and as a result of our business plan we have expanded our service area, and increased revenue as forecasted"  –  the lender may even pas out from shock at someone having a…[Read more]

Kat Taylor wrote:
Hi v8, excuse my ignorance, but why 'run a mile from mortgage managers or originators, and even more so credit unions!'? There is a lot I need to learn about this investing business… Cheers, kat

Hey Kat,Not ignorance at all…….it really come down to what you are planning to do.In all truth, credit unions and mortgage…[Read more]

Hi Stevo,Agree with Terry – stick to a major bank. Have you spoke with your current bank? (whoever that may be) The nab choice pacakge is likely to be one of the best value bank loan packages you will find – especially if you are borrowing over $250k, and have a rewards credit card, and other banking needs – market leading rate too now for quite a…[Read more]

I think Dan42 has made such an important point that many overlook – there are indeed 'non financial reasons' people could/should/might buy – including the emotional side, or feeling of security or ownership if you prefer. Not a feeling money can buy I'm afraid.Cheers

Good on you Celmel,A big congrats on the first IP (hopefully of many). Where abouts are you between Bendigo & Melbourne? Rentals are very tight in Bendigo itself at the moment, particular anything near Latrobe Uni. Enjoy the forum – there is a lot of experience here, but also a lot of personal opinions from a wide variety of backgrounds too so…[Read more]

lifesjourney wrote:
FYICarly will be on Channel 9 "the secret millionaire" show Monday 23rd Aug 9.30pm.Helping others gives new meaning to creating wealth.Matt

And what a good watch it was too. Puts things in perspective, and I thought Carly did a great job. Teared (is that a word?) up a bit myself too! Cheers

You will need to go with an 'on line saver' type one to get the most $. Some lenders only offer a higher rate for 3 or 4 mths on their products. My thoughts would be to check out UBANK first, or virgins' new account, or what on line saver your own bank has.Cheers

Well……Was not a painful as I thought it might be.If it helps, aside from the fuse box (which was replaced 3 mths ago for $700) it ended up costing me a tad under 4 grand which included replacing most of the switches and power points too. However, there were a couple of circuits already updated. SO, I guess 4.5 – 5.5 k is a real world figure. I…[Read more]

Hi Andy, A lot of lender ones are a tad on the anal (general or vague may have been a better choice of word) side.Have a crack at one from an LMI provider – you can download as an excell sheet for a play around. Link is here http://www.qbelmi.com/pg-Nsr-Calculator.seoFYI I reckon the best home buying cost calculator is on the NAB website. (I even…[Read more]