Just a different opinion regarding mortgage insurance. Kay mentioned ‘i disagree about paying lender´s mortgage insurance- that`s money down the toilet’.

Saving for the first deposit is definitely the hardest part of purchasing property, be it for investment or PPOR. LMI enables you to enter the market much more quickly than if you needed to…[Read more]

Is the tenants business secure? Fiancial position of the company, individual etc?

Do you have the ability to absorb a 3-4 month vacancy?

Could the building be re-leased to another company/indiviudual without work being required on it?

James

Do you have to sell? Can you simply use a line of credit against current IP to purchase next one. Serviceability an issue??

James

Lee,

When you go for a deposit bond application, you will essentially be placing an application which is on par to a loan application. Therefore, you would essentially have to qualify for a loan to settle the property before being given the deposit bond.

In addition, bond insurers want approximately 5 times in equity for the deposit bond…[Read more]

Steve,
I am looking at the same appraoch as you. From what I have been able to find out, there is no stamp duty on property purchase. There is no CGT either, however, haven’t confirmed but I would think it would be captured by Australian tax laws as foreign income.

James

Welcome Debs, as you mention, the more you learn, the less mystery property investment holds. (It not rocket science really!). Just need to forearm yourself with knowledge.

Good luck.

James

Agree with comments by Mel.

The last point is very relevant, not only would you have the ability to use the funds against the equity from the increase in value (as long as servicebaility is OK), you still have the asset. No need to sell and therefore you still have the asset in your hands for future growth and further investing.

James

The formula so to speak that the banks use, is pretty much a part of their lending policy, so I wouldn’t bother. Read no chance. However, when you speak to a mortgage broker there are many different lending products and lenders, so they will able to advise the lender best for your needs.

For example, I think St george & CBA when calculating…[Read more]

Punter,
Usually, the tenant would pay all the outgoings, however, like all contract negotiations, it depends on the parties and what they deem to be applicable to them.

For example, a family member owns a commercial building in mebourne CBD and upon commencement of last lease, the lessee had to undertake extensive internal renovations/upgrades.…[Read more]

Try this calculator
http://www.national.com.au/Personal_Finance/Calculators/hlspcc/hlspcc.php?page=both

James

Terry,
What did you pay for the privelage? Was it worthwhile?

James

There might be no CGT in NZ, but you would still be liable for it in your Aus tax return, wouldn’t you??

James

Terry, if you were using funds from an existing LOC to fund the deposit, then essentially, you would have full deductibility (as long as it is an IP) for the interest component on the complete purchase price.

James

So where do you want to end up?

My view (a little different from most) is to invest, and continue to rent. Ultimately the rental you pay for the property you would like to live in is usually, less than what you would have to pay as a mortgage, council rates etc and you don’t need a minimum 10% deposit.

However, most people are more comfortable…[Read more]

Carl,

Yes, the last few years has seen a substantial increase in property prices, however, if you are investing for the long term, a good property today with regards to location, type etc will still make you money.

The same applies to whether you are looking at -ve or +ve cash flow properties.

James

I agree with James. Establish what you can and can’t afford. Talk to a few brokers, banks, real estate agents etc – hardly sexy stuff, but definitely required.

Understand what you want to go with property investment, map out a five year plan, to give you some guidance as to what direction you should take. No doubt this will change over time,…[Read more]

You may consider paying out your personal loans with the money first, this will increase your borrowing power.

Why don’t you consider buying an IP now, with the market still solid on the Gold Coast, you should get a solid capital growth in the next 12 months. Save what you can in that time and I believe you will be in a better position to…[Read more]

Related information on
http://www.thecouriermail.news.com.au/common/story_page/0,5936,8770292%255E3102,00.html

James

Stamp duty differences between all states.

http://www.reiv.com.au/information/pg_info_calc.html

James

Our perceptions of distance change over time anyway. 20 years ago, places like Cranbourne, Carloine Springs even Bundoora were seen as far outposts of Melbourne. As long as the business case is their for Jetstar to exist and run profitbaly, then in 5-10 years, Avalon is not going to be that ‘out of the way’.

Rod makes a good point that…[Read more]