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
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.
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?
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
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.
What are the general benefits of a home as your PPOR vs IP? Vs the obvious exemption of no CGT when selling?
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?
