first investment

Viewing 3 posts - 1 through 3 (of 3 total)

dragon007
Member
@dragon007
Join Date: 2006
Post Count: 10
January 25, 2007 - 8:50 am
hi all,
i am about to go out and buy my first investment property and rent it,
when doing this what things should i look out for and what other things $$ will i have to get ie insurance etc and if i use a equity lown to establish it will i have to pay LMI, and advice om what to look out for..
One last thing, does anyone know of a good accountant in tamworth
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
January 25, 2007 - 8:57 am
dragon
One thing you should do before you do anything else is decide what sort of structure you are going to use to purchase the property i.e personal name, Pty Ltd or Trust Structure and this will obviously depends a lot on your own circumstances and plans for the property.
Secondly you should ensure that you make sure the loan is structured correctly and that the property is not X collaterailised (carefull planning maybe as you need to make sure you are not adversely affected in future deals) so a good MB should be able to help.
With regards to questions like whether you will incur LMI it is difficult to give you an answer without knowing a little more about the dal and your position.
On the Accountant front like anything these days they don’t have to be in Tamworth as phone and email works wonders.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
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duckster
Participant
@duckster
Join Date: 2004
Post Count: 1,674
January 25, 2007 - 11:55 am
Make sure to get landlords insurance (approx $600) that covers loss of rent, tentants trashing house, public liability, ect. .. You will need to cover stamp duty costs (depends on price of property ) also., solicitor ($500 -$800) , pest inspection ($500) (optional), Building inspection ($500)(optional) and Loan establishment fees ($600) and maybe a title search probably $250 also .
Important point you can’t get the loan money without having the place insured. You can’t get the place insured unless it is occupied hence why I use CGU Landlords insurance as they were willing to insure an empty house.
stamp duty calc
http://www.osr.nsw.gov.au/erevenue/calculators/landsalesimple.php
Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.