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Hi All, For those who have reasonable cash (eg 20% - 30%) deposits but find it difficult to get sufficient borrow out of banks with new lending criteria what alternative financing strategies are a good idea? Eg have any people looked at using 20% equity, eg 50% traditional bank finance and...

Hi All, If one has a pty ltd company for which they are sole director and sole shareholder, I understand you can provide a director loan but there is a government set interest rate based on commercial terms. I think its something like BBSW + 5% so something like 7% at the moment? If one...

A few tax strategies I've seen towards the end of FY including paying interest in advance for a mortgage or for say a margin loan on shares. If this is paid late June it allows for a larger tax deduction offsetting tax payable in a few months. Has anyone looked at this or things similar and...

I'm interested in peoples thoughts on the principals of buying apartments in larger apartment blocks, eg 12 storeys plus. Do people think they generally have lower CG returns because they have less scarcity value, the apartment being the same as many other apartments in the block and perhaps...

Looking at the potential value add of granny flats does anyone have some experience on valuation issues for granny flats. Eg lets say you buy a house for $400k that normally rents for $400 a week, you spend $100k to add a granny flat that rents for $200 a week. Your spend is $500k and your...

A query on good accounting and bookeeping software for small business owners and property investors. I've been having a look at QuickBooks prices (http://quickbooks.intuit.com/signup/), I note Xero has become increasingly popular and is a bit more expensive? Do any accountants, small...

A query on property finance for business owners, lets say one takes a view that they prefer to own property in their own name but their income comes through their business in a pty ltd. Lets say the pty ltd earnings are $250k and the owner typically pays a dividend of say $100k to provide...

Hi All, I have a PPOR that has a 25% variable loan, 75% fixed loan. Our property has gone up around 20%-25% and we want to unlock some of the capital to use as a deposit for another property. The issue we have is the break fee on the fixed loan is considerable, there's 1.5yrs left on the...

A tax question that's not purely property but relevant to a lot of the business owners on the forums. Does anyone have any view at what level of business income its desirable to move from a sole trader setup to a pty ltd? The pros and cons are obviously as a sole trader you start getting...

My partner and I are analysing how we can most effectively reduce out mortgage. We have a $520k mortgage which is $130k variable with a linked offset account and $390k fixed. Our offset account has almost offset the variable loan. Once we have $130k in the offset we can put another $30k in the...

There's an interesting section in the latest Australian Property magazine on property investment tax bloopers, page 78. One of the points is on "paying cash deposits" whereby the writer recommends borrowing for deposits because interest on debt for investment properties is tax deductible. I...

I'm sure many people have reached this as well, where you've got a couple of IPs and reach borrowing limits, even if the IPs are cash flow neutral to positive and hence the acquisition of additional IPs doesn't actually cost you anything on a monthly cash basis. Are there any useful...

Interesting post by Nathan Birch on LMI (https://binvested.com.au/lenders-mortgage-insurance-lmi/) he references that if folks can run 20% deposit they're better off doing so and avoiding LMI he quotes one of the reasons that using LMI flags you as being a relatively higher risk borrower and...

I'm sure other folks here like myself have experience in buying property near where they live and are familiar with. Seeking feedback on how folks approach buying interestate in areas you didn't know well. How you sought out the different areas, how you managed inspections and spending time on...

My understanding is when LVR kicks over 80% and LMI is required the interest rate typically goes up a bit? Then further if its fairly high LVR eg over 90%? Do you ever have an interest rate reduction when the credit risk becomes particularly low with low LVRs eg below 50%? Thanks.

I'm interested to learn more about research tools that people use. I've just found out about Real Estate Investar (http://www.***************************/ME2/Default.asp) which I know has been mentioned here a couple of times. Just wondering if there's any competitors to real estate investar...

Interesting piece just out by Joye in the AFR, who is one of the better market commentators. Not sure exactly how he works out its 10% overvalued. Streched valuations seems to be mainly associated with certain suburbs, not necessarily broadly based...

I often read that perception that houses provide superior capital growth and to compensate for that they have lower rental yields than units (which have comparably lower capital growth). The logic for this would seem to be that owner occupied demand is the real drive of price growth, as most...

Has anyone recently focused an investment strategy on properties/suburbs that are beneficiaries of the ripple effect. Where a certain suburb has run up substantially, and neighbouring suburbs are slowly playing catch up. Has anyone had a look at this around Parramatta? Neighbouring areas...

Has anyone had much experience using investment clubs with success, for example The Investors Club (http://www.tic.com.au/en-au/home.aspx)?