Join Australia's most dynamic and respected property investment community

Quick Intro.

Discussion in 'Introductions' started by Jonno Yeo, 13th Jul, 2015.

  1. Jonno Yeo

    Jonno Yeo Member

    Joined:
    13th Jul, 2015
    Posts:
    11
    Location:
    Melbourne VIC
    Just a quick introduction.

    26 years old, and looking to get into the property game.

    Currently own a commercial office in Adelaide with my parents, wholly own one quarter of it, valued at around ~$500,000 (so my share ~$125,000). Currently held under a family trust.

    We're looking to sell this as the new tenants are not paying all outgoings vs our old tenants so we're only netting around $6k vs $30k or so/annum from our old tenants.

    Once sold i plan to use the cash as deposits for one or a few IPs.

    I'm still quite new to everything as i've always left it to my parents to handle.

    Currently work for a bank so get 1% off the standard variable and fixed rate loans + no app fees, no on going fees etc. so would like to take advantage of this.

    Only making $58,000/annum gross before super and am renting in Melbourne. Living costs and general living expenses are quite high atm. I plan on moving back to Adelaide in the medium long term (5-10 years time) and my goal is to eventually hold an IP that I can move into.

    Interested in purchasing my first IP in Adelaide (however i live and work in Melbourne) although am open to property in Melbourne however I just have no idea about areas like I do in Adelaide. Looking for mainly some positive cash flows.

    Keen to start reading :)
     
    Last edited: 13th Jul, 2015
    Jess Peletier likes this.
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,760
    Location:
    Perth WA
  3. Jonno Yeo

    Jonno Yeo Member

    Joined:
    13th Jul, 2015
    Posts:
    11
    Location:
    Melbourne VIC
    One of the big four haha. From what I hear most If not all of the banks offer the same or similar 'deal' to their permanent staff.

    Although from what I hear from friends is that I could get better deals from a broker? Not sure how true. Maybe only for higher borrowing amounts.
     
  4. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,760
    Location:
    Perth WA
    You won't get a better deal on an IP through a broker at this point. Do you get LMI waivers?
     
  5. Jonno Yeo

    Jonno Yeo Member

    Joined:
    13th Jul, 2015
    Posts:
    11
    Location:
    Melbourne VIC
    From memory we don't however not 100% on that.

    Either way I figured once I free up capital with the office LMI should not be an issue?

    I can also get a family guarantee?
     
  6. Hodor

    Hodor Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    737
    Location:
    Homeless
    I know of people who work for a big 4 bank who got a better deal through a broker. Not sure if things have changed but it doesn't hurt to look
     
  7. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,760
    Location:
    Perth WA
    When there was pricing discretion on IP's we definitely could. Now however it's a different ball game. If it was a PPOR we could do better than 1% off the SVR for sure.

    That said, with a completely different lender we could also get a more cost effective loan (I was talking about just the big 4 before) - but cost effective isn't always all it's cracked up to be, there's often an unseen cost to cheap lenders.
     
    Hodor likes this.
  8. Jonno Yeo

    Jonno Yeo Member

    Joined:
    13th Jul, 2015
    Posts:
    11
    Location:
    Melbourne VIC
    What are the general benefits of a home as your PPOR vs IP?

    Vs the obvious exemption of no CGT when selling?
     
  9. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    Doesn't the rent/yield effect the resale value? When selling do you advertise it with the full rent and hope the prospective purchasers don't find out that it's not including outgoings?