Hi Jon,
That is a darn good question. As a knee-jerk reaction, my initial thoughts were “Yeah, you beauty – buy an under-valued property for cash, then refinance later up to its value to allow you to go again.
e.g. Buy a $350k house for $300k unconditional – a lender would likely have limited any mortgage to 90% of that, so $270k.

This way,…[Read more]

Hi Bjoern,

Jamie Moore wrote – what works well for some won’t for others.

Bjoern>>> Just wondering about this. Since I’ve started to look into properties I have probably read this or similar comments hundreds of times, but I never really understood it.

Consider these differences:-
o Some starting out have (quite) limited funds
o Som…[Read more]

Hi Bjoern,

Jamie Moore wrote – what works well for some won’t for others.

Bjoern>>> Just wondering about this. Since I’ve started to look into properties I have probably read this or similar comments hundreds of times, but I never really understood it.

Consider these differences:-
o Some starting out have (quite) limited funds
o Som…[Read more]

Hi Bjoern,

What would you say are the risks with OTP compared to established?

Overpaying would be the #1 risk in my opinion. Where a company is selling OTP properties, they set the prices, and each tranche is more expensive then the last – why? Because they say so.

Then, if a greenfield estate, the lack of infrastructure would have to be a…[Read more]

Hi Dana,
Coogee has come up with one side of the picture (buying your home first) and with the cash you have set aside, this could happen quite quickly for you (i.e. you DON’T have to save a Deposit, right?)

One of the links in that thread I showed you earlier involves the age-old question “Do I buy a PPOR first, or do I buy an IP first?”…[Read more]

Hi Bjoern,

Alternatively, does anybody know about good property investment mentorship programs?

Here’s one that I have heard people speak highly of :-
https://www.propertyinvesting.com/store/property-apprentice/

And recently, that 12-month course was condensed into a Bootcamp on Steroids !! Here’s what attendees…[Read more]

Hi Dana,
I have no knowledge of the Sydney market – except that it sounds like it is approaching “over-priced” in some areas. But then, Sydney has the advantage of being the place every new migrant seems to want to go. As such, there is a demand for Sydney that is unmatched anywhere else. With demand (and limited supply) comes price growth.…[Read more]

Hi Dana,
Sounds to me like you and your boyfriend have some terrific options open to you. The first thing is to become aware of what options you have. Joining this website is a pretty good start. Have a look around, read some useful posts, and start to “get the idea” about what works, and then what works best FOR YOU. You seem to already…[Read more]

Well, this post impressed me from the day that Xenia posted it. The title is eye-catching immediately, and was already known to me from an NAB advert (I rather liked the advert because of the thoughts held within that phrase – “Ships in a harbour are safe – but that is not what ships were made for…”).

And today, thanks to Xenia, it has us look…[Read more]

Well, this post impressed me from the day that Xenia posted it. The title is eye-catching immediately, and was already known to me from an NAB advert (I rather liked the advert because of the thoughts held within that phrase).

And today, thanks to Xenia, it has us look at WHY we might choose to invest – and even why we SHOULD.

Xenia shares a…[Read more]

Hi Gabsy,
Well done on putting your question “out there”. Starting any new venture can always be a bit un-nerving, so calling out for assistance is a smart thing to do in the early days.

Is it normal for the first IP to be negative geared and then hopefully all future properties positive geared?

Having the first property negative geared MIGHT…[Read more]

Hi Gabsy,
Well done on putting your question “out there”. Starting any new venture can always be a bit un-nerving, so calling out for assistance is a smart thing to do in the early days.

Is it normal for the first IP to be negative geared and then hopefully all future properties positive geared?

Having the first property negative geared MIGHT…[Read more]

Hi Asou,
It is good to know that market prices have moved upward. That provides hope of a better outcome for you.

Is the valuation by bank always significantly lower than the mkt price?

A valuation for finance can often be below a market appraisal conducted at the same time. A bank has their $$ on the line, so their vals tend to be more…[Read more]

Just realised I had missed this bit :-

you want to aim for an ROI that is 1 percentage point above the mortgage…

OK, so let’s re-evaluate ……
Mortgage Interest stated was 4.5%, so let’s say Rental Income is 5.5% (on a $300k IP, that is $330/wk or 16,500pa)
Mortgage still $13,500 and expenses ran to $3000 except for Maintenance – so Total…[Read more]

Hi Bjoern,

guess I underestimate the effect of deductions a bit ;)

They certainly help – BUT, did you notice that even with expenses of about 1.3% you were still positive geared in my example?

So the “1% rule” looks like it can stand alone, even WITHOUT deductions. Of course, this depends on many things – it will not work in all…[Read more]

Hi Barlow,

Apparently i will be eligible for an offset account in 12 months, rather than 2 years, as i an get offset attached as long as fixed interest period is no longer than 12 months.

Hey, that is a great option to know about – thanks for sharing it!!

Did you gasp when they told you the Break Cost? When I looked at breaking mine, I…[Read more]

Hi Bjoern,

Is it really possible to get a property to be positively geared with a return that is only 1% (or even 2%) above the interest rate for the mortgage?

I haven’t actually read/heard how Steve does that – but one thought would be that “non-cash deductions” can help cashflow. So much so, that you can own a negative-geared property and…[Read more]

Hi Smally,
Perhaps this thread can be of some use as you find your way:-
https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/

Benny

Hi PS,
As I understand it, the AGE of the property gives a clue to the likelihood of asbestos. I own a house built with “hardiplank” (James Hardie Industry created this weatherboard, and in the early days at least, it did contain asbestos). In previous checking, I think I recall anything created in the 90’s is OK, late 80’s may be OK, but…[Read more]

Hi Smally,

Welcome aboard – I hope you find your visits here useful in every way.

I have been looking around for my first investment property.
This is all very daunting and I don’t know which way to turn when looking on line.

Given that second line, I wanted to attempt to “bring you down to earth”. That is to say, WHAT are you looking to b…[Read more]