Hi Long John,

You talk as if the threat is over and everything is honky-dory again…

We are seeing a “cycle” as we have seen over decades. And yes, there are peaks and troughs. I believe we will see harder times, and easier times. And we will see decisions made by Govts that help, and others that don’t help.

If, as Glenn Stevens s…[Read more]

Well, I enjoyed reading that one. And yes, I enjoyed reading both sides of the debate.

In early 2008 we were “enjoying” the rise in Interest Rates that followed newly-elected PM KRudd famously saying “The inflation genie is out of the bottle”, prompting the RBA to start raising interest rates as the rest of the world were madly cutting…[Read more]

Hi DM,
The numbers would give you a clue. Have you calculated the dollars available after all costs?

First, is this “old PPOR” still your nominated PPOR? Or will you be up for CGTax on sale? CGT could be a MAJOR cost to you – is it?

Re “should you sell”, that will depend on
1. what it is costing you to hold,
2. whether having an IP…[Read more]

Hi Steve,

Of course, things will change over time.

Aha, I see you have added a quote – these seemed to disappear during the forum changeover. Let’s see if my quote works too…

Woohoo – it did !!

Benny

Having just re-found this post for someone, I wanted to put it into this thread.  

It shows what CAN be done by young investors starting out…..  and the results are remarkable.  He created rental incomes of $200k in 2 to 3 years.  Out of that comes mortgage payments, rates, etc – but you will see there is still a LOT of cream left over…….…[Read more]

A common question is when investing, "Why use IO loans and not P&I loans?"   

And for those REALLY new, IO means Interest Only (you pay only Interest, and nothing off the Principal), and P&I means Principal and Interest are paid.  Of course, a P&I costs you much more per month than IO.

One main reason is the thinking that it is silly to pay off…[Read more]

A common question is when investing, "Why use IO loans and not P&I loans?"   

And for those REALLY new, IO means Interest Only (you pay only Interest, and nothing off the Principal), and P&I means Principal and Interest are paid.  Of course, a P&I costs you much more per month than IO.

One main reason is the thinking that it is silly to pay off…[Read more]

A common question is when investing, "Why use IO loans and not P&I loans?"   

And for those REALLY new, IO means Interest Only (you pay only Interest, and nothing off the Principal), and P&I means Principal and Interest are paid.  Of course, a P&I costs you much more per month than IO.

One main reason is the thinking that it is silly to pay off…[Read more]

Hi Spud,

  Welcome aboard !!   I think you will get better answers if you can frame your question with more detail.  Just a few thoughts as a guide :-

  Is this urban or rural land?
  Is it subdividing an existing small block (perhaps with a house on it)?
  Is it an acre or so to be subdivided into 5 or more blocks?
  In a major city or a…[Read more]

Finding Cashflow Positive IP's – it is already a "sticky", but now and then, we need to review what is already "up there and available to all".  

At least stickys can be found easily, but just in case you missed it, this thread contains FAR MORE than a suburb-by-suburb list of "where to go".

A lot of the posts in here deal more with the "How to"…[Read more]

Finding Cashflow Positive IP's – it is already a "sticky", but now and then, we need to review what is already "up there and available to all".  

At least stickys can be found easily, but just in case you missed it, this thread contains FAR MORE than a suburb-by-suburb list of "where to go".

A lot of the posts in here deal more with the "How to"…[Read more]

FInding Cashflow Positive IP's – it is already a "sticky", but now and then, we need to review what is already "up there and available to all".  

At least stickys can be found easily, but just in case you missed it, this thread contains FAR MORE than a suburb-by-suburb list of "where to go".

A lot of the posts in here deal more with the "How to"…[Read more]

FInding Cashflow Positive IP's – it is already a "sticky", but now and then, we need to review what is already "up there and available to all".  

At least stickys can be found easily, but just in case you missed it, this thread contains FAR MORE than a suburb-by-suburb list of "where to go".

A lot of the posts in here deal more with the "How to"…[Read more]

FInding Cashflow Positive IP's – it is already a "sticky", but now and then, we need to review what is already "up there and available to all".  

At least stickys can be found easily, but just in case you missed it, this thread contains FAR MORE than a suburb-by-suburb list of "where to go".

A lot of the posts in here deal more with the "How to"…[Read more]

Hi Hamish,

Quote:
Is there a reason you want to invest in Victoria with something that seems quite "involved"?
What's your strategy towards buying there?

  It seems wilson wants the option of living in it himself. 

  If it is restricted to students or NRAS tenants, then he may not be able to do this.   And having it as his PPOR can be a very…[Read more]

Hi Wilson,
   I see you have joined us quite recently – welcome.   I wish I was able to answer your questions, but I'm afraid they are out of my league. 

  I thought I would say Hi, and get this bumped into the "recent" pages of this site.   Hopefully, someone else from down your way – Victoria, maybe Melbourne (?) – will see it and respond with…[Read more]

Hi Krystal,

  Welcome aboard !!   It is great that you have chosen to ask first – this is an area that can be a trap for many.  

Quote:
After speaking to my bank today, the issue they foresee is that I'll be using the equity from what would then be my investment for the principle residence – so there would be potential that the property was…[Read more]

Hi Ryan,

   I just noticed this bit at the end of your first post :-

Quote:
If I don't sell, both properties will probably be negatively geared in about three years, thus giving me less cash flow.
I'm leaning towards selling now…. 

  This is good that you are thinking it through.   If your preference is to sell, because of risk tolerance,…[Read more]

Hi LL,

Quote:
There must be some good in X Coll or other wise they would not allow it ?? so is there anyone with good stories on x coll??

  I recall a post (I think it is on this site) where a poster called "Dazzling" was able to purchase a huge commercial property with awesome returns by x-colling with his PPOR.  He saw it as a great way to…[Read more]

Hi LL,

Quote:
There must be some good in X Coll or other wise they would not allow it ?? so is there anyone with good stories on x coll??

  I recall a post (I think it is on this site) where a poster called "Dazzling" was able to purchase a huge commercial property with awesome returns by x-colling with his PPOR.  He saw it as a great way to…[Read more]