Going to buy my first property who do I talk to?

Well better late than never, I think I'm finally got enough cash to get my first property.

My strategy is to hopefully be able to buy a property a year and use equity to finance subsequent purchases.

Do I need to speak to a broker or a financial planner when it comes to loan type and structure, and how

It's going to be a ip, I'm seriously considering the Brisbane areas like cooporoo, normal park, cannon hill etc.

Im from Sydney so to buy interstate for my first is slightly uncomfortable but I there might be some good cg in them.

My goal is to get some good growth out of it so I can use the equity. I also want something I can add value and maybe do a small Reno.

Just wondering, do you guys do the renno first before getting tenants? Can all this still be tax deductible or does the ato need to see proof of rent?

Can I also borrow the cost of a renno?

Thanks guys
 
Just wondering, do you guys do the renno first before getting tenants? Can all this still be tax deductible or does the ato need to see proof of rent?

You can't claim it either way as an expense. Has to be capitalised.
You can only claim repairs immediately.

The Y-man
 
Financial planners are not qualified or licensed to discuss the most appropriate type of loan. You need to speak with a broker.

The decision of reno first or later will depend on the property, but I've generally found that the right sort of reno can do a lot for the rent you'll get.

You can borrow the funds for the renovation, assuming you've got something to secure the loan against. If it's a small renovation you probably can't use the existing property as security. The most appropriate answer will depend on your circumstances.

To add to Y-man's comment, the interest on a loan for renovations would likely be tax deductible, but the renovation costs itself wouldn't be immediately deductible because it's a capital improvement, not a repair.
 
Thanks guys, I know there are a lot of brokers on here but can someone recommend a broker in Sydney preferbally in the city or north shore?
 
Keep asking lots of questions!

Who you talk to
People who are encouraging!

Write everything down!

have a business plan with an exit strategy!

know your SNAF!

I hope this helps!
 
Thanks guys, I know there are a lot of brokers on here but can someone recommend a broker in Sydney preferbally in the city or north shore?

Heya,

It'd be a good idea to sit down with a broker and map out your budget for the now, and a pathway to get you to where you want to go. This will: a) guide your investing and b) save you money/headaches associated with poor structuring as a result.

A financial planner isn't particularly useful for property investing - better for insurance/SMSF/super.

I consider a core network/investment team as:
a) broker
b) accountant
c) solicitor (although i'm yet to find one that I deal with all the time, as I purchase in different states).
d) team of fellow investors (SS community! :))

Plenty of Sydney brokers here my03 - Marty, MickC, Shahin, Terryw, myself - just to name a few. As much as I like seeing all my clients, realistically, in today's world, its very easy to go beyond face to face interaction - much of the work can be done online.

Choose who your comfortable with and then go from there.

Good luck,

Cheers,
Redom
 
My take on before/after renovation is as follows:
Before Pros:
Increased Rent

Easier to rent (given you renovate for the right tenants)

Depreciation which can be claimed

Increased Equity (Very important for property investing, speak to your broker about this though as an Reno to my understanding won't be immediately assessed)

Before Cons:
Cost, you need equity to pay for it or tip in own funds. If borrowed you need to pay interest (as per above can claim on this). If you do a Reno at end you still need to pay somehow but it will have very minimal interest.

Depreciation whilst you can claim means it is no longer new. When you go to sell then the Reno will have lost a lot of value.

Old style. Your cool ultra modern renovation today may be hideous to buyers in 10 years time devaluing the property and making it harder to sell.

Obviously doing the renovation before you sell is the reverse of the above so really it should become a numbers game and should also be about future goals.

If the increased rent, tax returns and "potential" increased equity offsets the value you will lose from having an old versus brand new renovation when you exit then there is your answer.
 
Do I need to speak to a broker or a financial planner when it comes to loan type and structure
Speak with a broker - a planner can't give credit advice unless licensed or a rep of a licensee.

There are a thousand on this site if you need any recommendations.

Im from Sydney so to buy interstate for my first is slightly uncomfortable but I there might be some good cg in them.

Perhaps hit up a buyers agent then. Andrew Allen and Richard Taylor operate up that way. Both smart, experienced investors.

Cheers

Jamie
 
As discussed a broker would be first port of call. Once you're committed to a purchase have a look at meeting with a financial planner to ensure your insurance is adequate for your new debt/financial commitments.
 
Agree with others that speaking to a broker first is a good idea, wished I had done this first as it would have ensured that some loans were correctly structured.
Buying interstate can be a little daunting but if make a couple of day trips to your researched area you can gain an idea of the market fairly quickly, it might be out of your comfort zone but diversification helps to lower risk IMO
 
Not specific loan products but they can give advices on loan types and structures can't they? Such a minefield.

i don't really know myself but I don't think planners can advise on much at all other than 'financial products' - shares, super, investing etc. Structure is legal advice, loan products would be credit advice as would loan types. some planners may be able to give tax advice - but that could be changing soon.

Not sure where to draw the line, so best to get licensed in all areas.
 
I recommend Shahin.

He is very knowledgeable and he is an investor himself.

Actually, most of the brokers on the forum are investors themselves.
So you are in the right place for the investing journey.



good luck :)
 
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