You would never get full unconditional approval without a contract of sale – a pre-approval just helps knowing that the lender *might* give you finance but it’s never 100% certain until all their boxes have been ticked.

From memory, the last time I did some modelling as to what gross yield you need to start contributing towards serviceability it was ~9.5% so would need at least that yield and then…[Read more]

Think average loan size too per location – Sydney’s average would be a lot higher than Adelaide’s.

How I work it is define my end goal so, for argument’s sake, that might be an income of $100kp/a from investments – what will I need to get there? Through the power of compounding over the years what avg yield and CG will I need to get there? LVR, portfolio size?

This is only a very…[Read more]

Looking at your figures it seems you want to keep your LVR around the 80% mark? Have you thought about venturing into LMI…[Read more]

If you wish, make your offer subject to a building and pest inspection if it’s not already in the contract.

When I worked in lending for one of the banks I would often see people with these kinds of loans. They’d get stuck in a trap with them – not even living week to week but living one week in advance. Something would happen, they’d borrow the money with circa 30-40% interest rates and use their money to repay the loan but…[Read more]

I find the greatest source of information to be the forums, this and the other one. Plenty of posters asking great questions and experts answering them.

I’d also recommend surrounding yourself by like minded people and those who have ‘been…[Read more]

I also live in Trinity Park and have seen your property on and off the market for a little while. First up – any reason you picked an agent from Redlynch to sell the property? I’ve wondered this as I drive down Reed Rd what would motivate someone to chose an agent from Redlynch.

Being in a…[Read more]

RE using the real estate investar to dispute val – in a word, no. After settlement you could request a full val but unlikely it will change too much unless you do something…[Read more]

In this particular scenario you are the one with the power with the substantial lending amount. In saying that though, I received an email from CBA this morning saying “We have also reduced pricing discounts for Investment Home…[Read more]

Not really unfortunately. The afternoon tea was pretty much 2 hrs of fluff going over what has been done already with nothing new said.

A summary of the notes I wrote:

Total size is 340ha. There will be a 33ha artificial lake and a 40ha ‘island’ that will be the main resort/casino area. The whole development…[Read more]

Then I will be ditching my $5000/year policy (is this normal!!!?)

Yes and no…. When I first bought my PPOR here I was hard pressed finding insurance for under $10kp/a (in a red flood zone) and was almost a deal breaker. I was then able to get building and LL insurance with EBM first of all as was going to be IP and insurance was about…[Read more]

Sorry to hear about your house getting trashed. Hopefully you had insurance which then paid for a cosmetic reno. Was the bank val done recently?

Good news about the Mr Gravatt place though. And congrats on the new…[Read more]

Take into consideration though the wider implications such as impact on CGT exemption for your PPOR, insurances, having a boarder vs tenant as well as other things.

Why is your loan not getting approved?

Regionals are usually good for cash flow and capital growth is usually the sacrifice. There are some exceptions to that rule but not many.

I started out my IP journey with 2 regional cheapies that served me well as a stepping stone. Purchased, did a basic cosmetic reno on both and rented out both for 8% and 10.5% return…[Read more]

It does depend on your risk profile whether you would be more comfortable with a 10% or 20% deposit. If your deposit is <20% then you will need to add LMI into that equation too.

Another thing to consider too is principal and interest vs…[Read more]

Out of interest, what’s made you narrow it down to the ones you’ve listed?

In answer to your…[Read more]

What may work for one person may not for the other.

If the borrower cannot service the loan it will not be approved – NCCP / responsible lending and all that jazz for resi lending.

Commercial is different where it doesn’t fall under NCCP but why would a bank lend money when the probability of…[Read more]

A lot can happen in 10 years both personally and economically. The break fees for a 10 year loan could be horrendous. I’d feel uncomfortable locking something in for 5 years, but that…[Read more]

Best bet would be to call a few of the local property managers and have a chat to them on what their prospective tenants are looking for.

Some instances there is demand for 1 bedders such as close or in CBD for cheap (student?) accom but I know if I was renting as a single person or even couple I would…[Read more]

When you’re self employed most banks usually go off your last 2 tax returns and take close to the lowest figure of the 2 so if you have had a bad year or two it can take a little while to have things looking better to the banks again.

There are a couple of banks who are happy with the latest tax…[Read more]

$34k isn’t as bad as I was envisaging. My comment on you credit report isn’t so much to do with payments…[Read more]

Are you looking to buy an IP or PPOR?

Doing balance transfers can do a lot of damage to your credit record when you apply for the credit cards. The low interest rate can be attractive but if you’re looking to purchase a property they can sometimes do more harm than good.

If the cards are on the higher rates of around ~20% most banks have…[Read more]

Have a chat to Corey Batt who posts on this forum. He from SA and knows that particular area better than the back of his hand and I’m sure he’d be happy to have a chat to you about it.

When you have an investment property, instead of making principal and interest payments where you are not only covering the interests costs but also reducing the principal owed have your loan/s set up as interest only so you are covering the interest costs only and not reducing the principal. This will help with cash flow.…[Read more]

I posted these links in another thread but I thought I’d make a dedicated thread. Please share your ‘go-to’ websites for investing too as I’m sure there’s some I’m missing!

Mine are:
http://www.investsmart.com.au/property – good for Capital growth figures, suburb demographics and make up
http://www.htw.com.au/downloads.aspx – monthly rep…[Read more]

how it is possible to repay the loan for the property

You don’t! :) Keep the loan as interest only so you don’t pay principal down and that in turn helps with cash flow. Capital growth helps take care of the equity.

I haven’t heard of splitting the rent into thirds before. Unless your LVR is low or you are getting massive rents on the…[Read more]

With this day and age there doesn’t need to be a face to face meeting but some people prefer it – it’s up to the individual with what they feel most comfortable…[Read more]