Recent content by mcarthur

My partner had something like this on her land - 110 acres, but there was about 40sqm against the road that wasn't hers, totally surrounded by her land. Council wanted her to buy it (with noone else interested at all of course) AND pay the back rates on it! So be careful with something like...

Hey Marty, just trying to understand: would this mean Westpac is now one of the preferred early IP loan aims then rather than later in the strategy? I've been quoted as between Adelaide and Westpac for first IP at 90+LMI, <500,000 loan. I'm not sure whether there is still a set of first-up...

Got that. But don't you need to move those offset funds into a split loan/LOC to make the interest deductible? Are you saying build up the amount through offset - perhaps over months/years - and then move what's needed to a split loan/LOC just when you're about to buy?

Good post and ideas! Which means investors will stop trying for lots of lower priced properties and move to mid-range where yield is still acceptable but GC prospects are high enough to offset not having lots of smaller CG's. Incentivising into PPOR would, I suspect, mainly mean...

Thanks! It still sounds like its better to take the aggressive strategy risk and go to 90% (if possible!) straight off (keeps money in pocket), reno using the saved funds, then either extract equity if still possible, or wait for life to change and CG and extract to 80%. Keep IO of course...

Can you explain a bit more please? I'm just starting on the journey, and was planning to - in the next 2-3 weeks buy a 400k property IO, 90% LVR, renovate, revalue back up to 90% after a year or so, and loop again. Given the changes in lending, is this now a bad plan? Or is it possibly a...

Agree with Scott. ...and by "this takes time", I'd suggest we're talking 20-40years, not months! Just look at what's possible overseas - UK and USA - in SIPS and prefab houses and it's simply head-shaking time here in Oz. I have a little experience in frustration finding a builder for some...

Thank you everyone for your help. I get it now. Really good information.

Trying to learn how these things work :o - I'm still setting up for the future, and the following has been suggested: PPOR - Bank 1 - 80% LVR, IO IP1 - Bank 2 - 90% LVR with LMI, <$500,000, IO IP2 - Bank 3 - 90% LVR with LMI, <$500,000, IO and in the future, to go: IP3...

Depends on the size of the windows (doh)! At the lowest end of the market it's about $200/sqm (DIY, use your own frame), moving through the imported from China $400-$600/sqm, then up to the absolute gouging (IMHO) levels of $800+/sqm. Add more for fancy opening mechanisms. Do you want...

Thanks Terry. I was pretty sure about the purchase costs but concerned about the reno costs. Is it correct that the actual reno funds would (entirely/mostly) be added to the cost base for CGT on sale? At least those bits that weren't part of the depreciation benefits during ownership? Is...

I'm organising a LOC on my existing PPOR. I understand the purchase costs can come straight out of that, and the interest will be tax deductible. Is that right? In implementing a buy-reno-hold strategy, I was also going to take the reno expenses out of the LOC. The reno will happen either...

True, but there is wiggle room. Had a house built by a (incredibly un-)professional builder. - Took out painting during construction because of gouging builder going against contract and trying to jack up price on agreed number of colours and dark/light colours: we did it ourselves. -...

1. Depends on your council! In the ACT, you probably wouldn't need a D.A. (but depends on whether you're obstructing/changing heating or entrances). You would need building approval through a certifier. Are your rooms you'll create going to have the correct BCA ventillation and lighting...

Well, at 300kph lets pretend, that only means a stop every 20mins. I'd be happy stopping once every 20mins! Given Goulburn would be 40mins from "Sydney", I reckon there would be a lot of interest in commuting whatever the rail/govt would want. Of course the definition of how such a train would...