Hi Johnny,
  And welcome !!   It sounds like you are in good shape, despite a little "untangling" to be done.

  I'm sure if you choose to utilise one of the Mortgage Brokers on here, they will be on top of everything.  But, should you choose to go another way (via a Bank, or another Broker somewhere), do consider your current situation re your…[Read more]

Hi Tommy,

Quote:
My biggest question has and still is: where does the deposit for the next property come from? ……
This just seems a long way off my traditional understanding of purchasing 1 property a year.

The early days are always the hardest.  When starting, more than ever, buying property "at a discount" or buying where you can add…[Read more]

Hi Schplak,
 

Quote:
how would you choose between two $500,000 properties in an area with a median house price of $500,000, compared to four $250,000 properties in an area with a median house price of $250,000 (all other variables and potential gains / income being equal)?

  Purely to "help you get your head around it", if all other variables…[Read more]

Hi NI,
  The answer to your question comes from the "numbers" – at 95% LVR, there would need to be a really good Gross Rental Income to be +ve geared.  This is simply because of the high %age borrowed, thus making the loan a higher number.

  Yield comes from Income divided by costs.  Thus with a 95% loan, the Income needs to be higher to still…[Read more]

Hi NI,
  Jamie is right with this….

Quote:
You're only disadvantaged if you decide to rent the PPOR at some point – because you would have paid down a chunk of the principle (which would become tax deduticble when it becomes an IP).

… but again, it is something that isn't a major problem.  e.g. If you decide you want to move out of this…[Read more]

Hi AI,
  See link below – it points you an article that should answer the question of "PPOR or IP?"  

https://www.propertyinvesting.com/forums/general-property/4349450#comment-296958

The further question (Tax deduction re the business) I would think it would be similar to how it would work in your PPOR – i.e. a percentage of costs might be able…[Read more]

Hi Shangrila,
  What an interesting question !!  I will be intrigued to read what those who KNOW can provide.  

  As a layman, I see a problem for the party that owns "half as an IP, yet doesn't draw any rent, and lives in it".   To me, that makes it NOT an IP at all, but a PPOR.  But then, "maybe" they can own the other person's half, and rent…[Read more]

Hi Derek,
   Welcome aboard.  You have come to the right place, my friend.   It is great to see one so young (looking at your picture there) getting interested in the world of Real Estate investing.   I hope you stick around and do lots of reading, as the amount of knowledge here is outstanding.

  As well as that, do find and read some good books…[Read more]

Hi dude,
  It is probably a good idea to have a one-on-one chat with someone who can assist you to make the decision.  The sharing of your private information would allow a better discussion – i.e. do you have a large wage to handle a -ve geared property?  

  But then there is :-
   Are you confident that where you buy the market has the signs of…[Read more]

Hi David,

Quote:
My understanding on VF monthly instatement repayments process is that the owner keep his loan until last payment done by the buyer

  That could well be right – I am not familiar with VF loans. 

  Just beware that if someone is buying from you in the "normal" manner, that the break costs could be large, depending on tenure of…[Read more]

Hi David,
  Be sure to check out the "break cost" of your Fixed Loans with your Bank before putting the units up For Sale.   There could be a nasty surprise, depending on where variable rates are sitting.

Benny

Another great read re "How do I choose which suburb to invest in?  What should I look for?" 

In his reply recently, Dave Ward goes above and beyond with a VERY full description of things that can influence a suburb and thus its potential for investors.  

I'll let Dave explain it more, here…[Read more]

Hi TNI,
 

Quote:
I am guessing these are house & land packages being developed but my question is what does the description mean by "LOT"

 When a new development is being planned, this includes mapping where streets will go, but without street numbers allocated, they use the Registered Plan description of (e.g.)  Lot # 11, RP # 123456, Parish…[Read more]

Hi Elizabeth,
  And welcome to this place.  here is an absolute wealth of knowledge available to you here.  I'm sure you will get a lot of benefit just by trawling around and reading.  More to your question though, I must agree with others who say "It doesn't make sense to spend a $1 to get 40c back – BUT, it can be helpful if you are reasonably…[Read more]

Hi CH and Hank,
  Hmm, what a shame no-one else has "got up to dance" on this one.  I would be interested to hear from others too.  Here's what I can think of for now :-

Quote:
  Also, can you get a personal loan to use for a deposit? I asked a broker this years ago when I didn't want to save a deposit and he pretty much laughed at me.

  I…[Read more]

Hi u36,
   I've actually been inactive for a little while now.  But I have noticed Insurances going up on my properties all around the place.  Last year they all added to 20 – 25% – but none were anywhere near $2000 a year.   That is scary-high.  I don't hold any in those areas right now, so haven't noticed what you have.

  My highest is about…[Read more]

Hi Bish,
  I would think the amount of time you had owned the property would be relevant too.  e.g. If you have rented it out for 10 years, then calling it a repair is probably fine. 

  But if you have just bought in the last 12 months, I wouldn't be too sure of it being classed a repair.

Benny

Hi Melbinvester,
  You appear to have tacked a reply onto a 6 year old thread !!   

  Your situation might be better suited by starting a new thread with your own questions, situation, etc outlined for all to see.  t sounds like you might have been "low-balling", but a bit of background re what (general) area, your reasons for the low offer, what…[Read more]

Hi Vincent,
 

Quote:
The loans would be $200,000 plus $315,000

  Since he makes no mention of a THIRD loan (like Terryw did) this does sound suspiciously like he was going to xcoll the two properties. 

  Note that Terry's idea actually prepares for further borrowings against your PPOR via the LOC up to the 80% mark (still no Mortgage…[Read more]

Depends which river …..