Do you have a property manager for your IP's Richard, or do you manage and do background checks on potential tenants yourself?

If I did that and our audit team found out it would most likely result in dismissal…

Assuming you have had all the proper conversations regarding "the right structure for you", is there any way that an online application could leave out a piece of the company or trust structure that was vital?

Or is it a case of "Once you've seen one discretionary family trust, you've seen 'em all"

Hi Magic,

Unless it is the only account you have with them, then it is unlikely to affect whether or not they give you a loan.

To be honest, even if you have nothing with them you probably have an equal chance – The only difference is that you would be seen as an 'existing customer', rathen than someone walking in off the street.

Cheers,
YI

It sounds almost ideal as long as you have two things:

– Property vacated without too much damage (hopefully none, of course)
– Strong rental market to get someone else in their quickly.

If you can manage both of the above, then you basically had a tenant paying an above market rent for a while. +CF to the max!

Terry – we sold a property because of death too… as good as I am at seperating all emotion from property deals, that one just got me!

A good banker will ask for disclosure of any other debts/guarantees/interests, however there are still a few who close their eyes and block their ears just to get deals over the line.

They aren't doing themselves or the borrower any favours in the long run, but still…

What happens if they QS overestimates the value of some of the fixtures and fittings, and then you get audited?

I am sure it is unlikely that the ATO would send their own QS to check the place out, but can a property owner rely on the QS report as gospel when it comes to tax time without any fear that the values are overstated?

Thanks,
YI

Terry,

Have you ever done a vendor finance deal where the buyer was unable to continue repayments half way into the deal?

Obviously you wouldn't wish this upon anyone, however it is somewhat advantageous to the vendor as they can put a new tenant in, and still retain 100% of ownership.

Just interested in your experiences.

Cheers,
YI

Prop Fin – Any idea of the asking price?

Hi Ferdinand,

My preference would be to go for something a little further outside of the CBD, as the prices of inner city apartments tend to fluctuate quite wildly.

In addition, the bank's will generally lend a lower amount for inner city apartments, and this has two complications:

– You need to put more cash down which limits your ability to leverage into further IP's
– Borrowing off the additional equity for further IP's is less powerful for a lower LVR.

The one part of your investment plan which is different to mine is that you are looking for short term growth – Why is this the case? Are you planning to sell and use the equity to leverage into a larger property deal? I'm not saying that this is right or wrong, but knowing the answer will help people here give you the best advice.

Cheers,
YI.