Hi CS,

   Your post is a little light on information, but it sounds like your cottage is not costing you much to hold.   With Interest Rates remaining quite low, maybe Fixing the Interest Rates would buy you the peace of mind re costs over the next few years.  

   Is the cottage your present home, and are you considering renting it if you don't…[Read more]

OFFSET ACCOUNTS – Often mentioned in glowing terms – and well worth knowing of when starting out.

Offset Accounts are worth a look at RIGHT NOW, new reader !! 

e.g. Your future might lead you to rent out your PPOR.  IF you had an Offset Account already in place, this would have eased your way remarkably.  Finding out about Offsets just before…[Read more]

Cross collateralisation (whew!!) or x-coll, or cross securitisation.

Cross coll often comes up for mention on here, particularly in an investor's early days.  

What is it, and why is it a problem for most investors?

It is often promoted within banks as it is in the bank's favour (NOT yours) to have your properties "crossed".   When going for…[Read more]

Cross collateralisation (whew!!) or x-coll, or cross securitisation.

Cross coll often comes up for mention on here, particularly in an investor's early days.  

What is it, and why is it a problem for most investors?

It is often promoted within banks as it is in the bank's favour (NOT yours) to have your properties "crossed".   When going for…[Read more]

Hi Dave,
   Welcome !!   You seem like you are in a great position to get going.   With a bunch of equity and what I presume is a very good income (for now at least??) probably the best I can suggest is to have you think of what kinds of investments would "fit" with your situation.

  e.g. if you are in a FIFO situation, with perhaps several days…[Read more]

Hi mixedup,

Quote:
Do property values generally go up when a newer suburb/area if developed adjacent?

  I'd say Yes, but with caveats (below)…..   Your comment re infrastructure is a good one, and an area can/will usually grow in value as the amenities grow. 

  The caveats that I believe will affect the actual result are these:-

1.  IF the…[Read more]

Hi Redwood,

Quote:
I will have to untangle the mess – unfortunately i will have to part with my banker if I do, but the question is did he act in my best interests by entering me into the arrangement in the first place.

  It could be that he did !!   In my earlier days, the broker I used arranged a cross between two IP's I was buying.  The…[Read more]

Hi Littlelegz,
   And welcome to you !!   With the equity you have, it seems to me that you don't need (and surely don't WANT) any x-coll.   Crossing properties just adds a level of complexity that will create more problems for you down the track. 

   Also, reading from the more experienced on here, it seems that some banks work with x-coll as a…[Read more]

Quote:
but it's really the last 10 years that I'm after.

Oh, I thought you wanted to see "10 year's growth" (which a 2004 issue of API would do, by comparing each suburb to today's API charts). 

But if wanting to see the spurts of growth within the last ten years, how would a select bunch of API mags do ???   e.g. buy one back-issue for each…[Read more]

Hi Peter,
  Welcome aboard !!    In the past, Home Price Guide provided this data – it used to be free, but now costs a bit (I think).

  The API magazines (Australian Property Investor) also provide a lot of this data.   I have some back issues that I would be willing to move on at a really good price if it helps (I bought them regularly between…[Read more]

Hi KSJA,
   All good questions mate – the main thing missing is knowledge of the stages required.  In simple terms, the first stage is to build your portfolio, the second is to pay down debt (after some time), and the third is to live off the portfolio.    There are many questions just to do with the first stage. 

   But let me give you a "more…[Read more]

Hey Mods,
  Folioinvestau happened to spam a thread that was 2 years old.   Now we have help from macraig for a poster who was last active in Apr 2012…..

  Might be worth culling these last few posts to let it settle back down again….  

  Your call,

Benny

I wonder if Harry Dent might take the challenge to walk backward up Mt Kosciusko if the bubble hasn't burst by 1 Jan 2017 ????  

Benny

Hi Matt,
   All good questions – once you have your head around it, things will all start to make sense.  For now, let me say it "my way", and see if you can relate to my words.  Sometimes we need to hear the information in different words before we "get it"…..  Here I go :-

Quote:
If I was just paying off interest only loan and putting my…[Read more]

Hi hrv,
   Hey, I like the thinking, and yes, the view looks way better being 2.5 metres higher.   But hey, $1000/m2 to build a deck?????   Sounds pretty exxy to me…..

   And then there are your estate agent's words (I think you left out one word – I'll add it) :-

Quote:
….  why do you need one of those?  You already have city views from…[Read more]

Hi Mandy,
  Congratulations !!  And yes, I am serious.  It sounds as though a very welcome light has switched on for you, and that is awesome.   Of course, this book will have shed light on your whole situation, thus leading to your questions :-

Quote:
I kept saying to my poor hardworking hubby how does everyone else do it??

  There are many…[Read more]

Hi Daniel,
 

Quote:
the reno i paid cash also burrowed money but that just went stright on to my exsisting mortgage at the time  so i have calcuated that in in full as money in the deal  !! but i arn't sure to include the reno cost's aswell in to the calcuations as that really changes the CoCR

I think the "cash on cash" deals only with your…[Read more]

Hi Hamish,
  Welcome aboard !!   Of course, family friends only want the best for you – but their answers might be coloured according to their own life experiences.  Not that their experiences should be dismissed, but it might help to delve deeper into "Why they think the way they do" and use the results to weigh up against information from…[Read more]

Hi Daniel,
  Wow, lots of work there !!   This introduction of yours leads me to ask you a bit more (I was confused…)

Quote:
i bought it 5 years ago for 76,000 i have refinanced and done a whole reno etc now i have tenets in there and the purchurse price i have worked out but geting my new valuation and deducting the current debt and the money…[Read more]

Hi Lea,
  

Quote:
However, why start again with new properties when we already have multiple between us that were purchased a couple decades ago?

   Don't lose sight of the fact that buying and selling any property costs you extra $$.   So, like many of the others, I'd say "take it easy" with selling them off right now – with the IP's being…[Read more]