Hi Mitzu,

In NSW the solicitor or conveyancor holds the contract once it is signed, and does not 'exchange' it until you OK them to do so, for example once you have finances in order, (ie unconditional)  and inspections done etc. Whereas some other states of course are a bit different.
DOn't be worried about waiting until your solicitor looks at the form and contract – that is normal process for NSW, and a 'no brainer'.
All the best with the inspection.

Cheers

Hi katsudon,

If you've moved to Tassieyou have to live somehwere, so it makes sense to buy. But like anywhere, if investing, you will need to look med-long term and buy carefully at the moment. There is always good deals to be had, but great deals are less common. As far as Queenstown goes, I cannot see any value in buying an investment property there – it has had it's time for the moment, and while there are some dear old character house there, there are also some absolute dungers. If you go for a drive out that way, you;ll get the gist. Make sure you take a flannelette shirt and fingerless gloves too (that was a bit nasty of me!) Around 4 years ago there was some growth, but not much going on at the moment.
All the best!

Cheers

Hey brendogs,

Bendigo sounds like a much better option. Must admit in your price range, you won't get a heck of a lot, but rentals are very tight, and yields quite good. I would suggest avoiding Long Gully area, and be careful around pockets of Eaglehawk, Kangaroo Flat, and some parts of Nth Bendigo & California Gully. SOme of the new H & L packages are great value, if you look long term, and allow for depreciation, and buying near the hospital or Latrobe Uni is not a bad idea. All the best regardless!

Cheers

Hi st81hp79

Sorry if I may have mislead you there – I thought you were talking about a SMSF & trust for some reason, (must have been some of the other posts I was looking at earlier) rather than a 'non SMSF' one – which of course what I said doesn't apply to. As I have seen some SMSF special purpose trusts get into some serious issues with the above exact scenario I must have got a bit excited! Still make sure you do it all correctly and documented as has already been mentioned if you choose to do it this way.

Cheers

HI,
If you are paying a deposit to purchase the property, and seeking finance then for the balance, you MUST pay the deposit via the trust or you will be in breach of SMSF legislation, which could have serious repercussions for you. You cannot 'reimburse' a third party from the SMSF for the deposit. Of course, you could make a gift/contribution to the fund for the deposit amount. Make sure you check this out in more detail before you do anything with a finance professional.

All the best.

hI naughtyj.
As mentioned, you will need in most cases the correct loan product – ie an 'interest only in advance loan', which will have a fixed interest rate. By way of illustration, the best of the 'big 4' as far as rates and fees & charges goes currently offer a 20 point discount for their product over a normal 'P&I' loan. You can't just pay the interest off in advance otherwise, or as Terry mentioned you are actually just reducing your loan principal.

Good for those with a major tax problem I guess.where they won't have one the following year…….

IF it's the group I am thinking of (the name sounds the same) I think you would be hard pressed to get finance – as there are numerous fraud alerts for them doing the rounds of institutions that you might need assistance from, with a particular warning about the brokers that 'suggest' them, and the 'valuers' they use. Think of how much weight you;ll lose by 'running a mile'………

Hi Kate,

Definitely make sure you go the eyelids first

WIth LMI premiums its like anything else – all about volumes, and the banks chuck a heap more business the way of the LMI providers than the credit unions. I worked for the NAB a while back, and the difference in LMI between the banks price and what a couple of the credit unions offered (like ADCU & Defcredit – did a lot of work with the armed forces guys) was almost half!
Must admit it is less now. I would imagine if your CU was quoting $5000, the bank premium might be $4500, but it all helps.
By way of comparison put all your details in here and see how it stacks up
http://www.nab.com.au/wps/wcm/connect/nab/nab/home/personal_finance/1/4/1/1

Many credit unions ream their customers (quaintly called members) with account & atm transaction fees major, whereas a all of the major banks have low value monthly fee accounts (or $0 in the case of the NAB, or CBA too if you have a min balance) which adds up to much more than the few dollars you may save on home loan interest each month. Still, if you are happy and somewhere that does not charge you like that I agree – why go elsewhere.
Make sure you check any info to in replies on a public forum Kate. Re the LMI being deductable you will see it says that on the ATO website, where there is a very handy document for property investors. You can get it here
http://www.ato.gov.au/content/00237831.htm

I have pasted the bit on LMI below from page 14 here for you.

EXPENSES DEDUCTIBLE OVER     A NUMBER OF INCOME YEARS
There are three types of expenses you may incur for your
rental property that may be claimed over a number of
income years:
n borrowing expenses
n amounts for decline in value of depreciating assets
n capital works deductions.
Each of these categories is discussed in detail in the
following pages.
Borrowing expenses
These are expenses directly incurred in taking out a loan
for the property. They include loan establishment fees, title
search fees and costs for preparing and filing mortgage
documents, including mortgage broker fees and stamp
duty charged on the mortgage.
Borrowing expenses also include other costs that the
lender requires you to incur as a condition of them lending
you the money for the property – such as the costs of
obtaining a valuation or lender’s mortgage insurance if you
borrow more than a certain percentage of the purchase
price of the property.
The following are not borrowing expenses:
n insurance policy premiums on a policy that provides for
your loan on the property to be paid out in the event that
you die or become disabled or unemployed
n interest expenses.
If your total borrowing expenses are more than $100,
the deduction is spread over five years or the term of the
loan, whichever is less. If the total deductible borrowing
expenses are $100 or less, they are fully deductible in the
income year they are incurred.
If you repay the loan early and in less than five years, you
can claim a deduction for the balance of the borrowing
expenses in the year of repayment.
If you obtained the loan part way through the income year,
the deduction for the first year will be apportioned according
to the number of days in the year that you had the loan.

Cheers

HI Joel,

I'm right with streamline. If you for example wanted to move location at the drop of a hat, don't have kids, and have no interest in gardening, making a house a home, and adding your personal touch to where you live without having to ask renting makes good sense often form a short term monetary point of view.
But what $ value is 'emotional' side of property ownership? If not, by all means, it is nearly always cheaper to rent – guaranteed.
I have done both, and much prefer home ownership (in conjunction with the bank!!!!)
The other thought is that if/when you sell down the track, any capital gain you make is tax free on your own home.
Age & family status is likely also a factor in the decision and or your needs

Pros & Cons….no right or wrong though. WHat would you do with the money you save if you rent?

All the best with what you decide

Hi Kate,
Couple of thoughts……..
Firstly, I have seen plenty of valuations of late coming in lower than expected – although personally I have had a few that have given people a pleasant surprise. IF you know of any comparable sales, even recently (ven if you have to badger a few real estate agents for info on recently sold places) you could submit theses to your lender and ask them to appeal the valuation based on the new information. You would be surprised that with LMI there is always a  'sweet spot' where $500 in the security value, can affect the premium by the same amount almost so it all helps.
Secondly, you mention you are borrowing with a credit union? The one you mention is better than some, but what you read about credit unions 'saving you money' and being 'better then banks' is pure and utter bilge. With the competition in home lending, and plenty of offers of application fee waivers or paid exit fees, I can just about guarantee you the charge for LMI from the (good) major banks WILL be less than a credit union charges – sometimes thousands. SO even if you valuations dont change, it could be a good idea to walk from the CU.
Thirdly, is he a good boyfriend? (ie is it a fair price?)
And finally……if you 'just gotta' remember that LMI premiums are tax deduct able over five years, and make sure all the fees to do with application/establishment costs, LMI etc are assocaited with your invesmtment loan rather than your owner occupied one in orer to maximize tax deductions.

All the best with whatever you decide.

Cheers