Hi MDD,

May I ask why cant we refinancing our original loan to a larger amount?

Oh, you CAN do that, no problem. It is HOW you do it that can be a problem.

Initially we have $400k loan on our PPOR with A bank, we now are going to refinance this loan to $600k with B bank, so we can use the $200k equity for deposit.

Bank A won’t be allowing…[Read more]

Hi Ronnie,

If I were to just have a principle and interest loan and no offset account and had dumped the $100,000 to my repayments nothing would change, my repayments would still be $2000 per month the only thing would change would be the loan term reduced in years, is this correct?

Sounds right to me !! And, if you wanted to get it out again,…[Read more]

Hi Adnie,
Just an overall “common pitfall” (not from any subdivision experience at all) – and that is to ensure you retain sufficient Cashflow, or at least cash to tide you over any rough times. The words “tied up capital-wise” sound a bit like it could be a struggle (??)

To that end, I would suggest erring on the side of caution, depending…[Read more]

Hi MDD,

I guess there is not much choice for us to go with different banks, only limited banks would consider our case.

Good on you for asking, rather than just guessing – a much smarter move !! ;) I think you will find (possibly today, from a Broker or two on here) that there may be less limits than you thought. At the same time though,…[Read more]

Hi Ronnie,
What Corey means is this :-
You have a $480k mortgage on a property. Mortgage is Interest Only, and you have an Offset account against the Loan. Loan repayment is 5%, so $24k per year or $2000 per month in Interest to be paid.

You put your salary into the Offset, live off your Credit card for the month, then square up with cc once…[Read more]

Hi ROnnie,
Mate, you need to read up about “Offset Accounts” (the greatest thing since sliced bread :p ) In a nutshell, if you get a windfall, pop it into the Offset. While it sits in that account, it reduces your Interest Bill by the amount in Offset (effectively “paying” you Interest of 5% WITHOUT it being taxable – cf savings account).…[Read more]

Hi all,
Aside from all of the number crunching, fact-finding, pavement pounding, and deal finding related to property investing, there is another HUGE side of the equation – the emotional side of property investing.

For those starting out, it is COMMON for well-meaning family and friends to WARN against something that is foreign to them, or…[Read more]

Hi all,
Aside from all of the number crunching, fact-finding, pavement pounding, and deal finding related to property investing, there is another HUGE side of the equation – the emotional side of property investing.

For those starting out, it is COMMON for well-meaning family and friends to WARN against something that is foreign to them, or…[Read more]

Hi Curtis,
Just in case you didn’t find this one

A common question when investing is, “Why use IO loans and not P&I loans?” Click below to read on….
https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/#post-4697976

Benny

Cool, Savannah – do drop in to tell us all how it goes !! Good luck,

Benny

Hi Suzy,
Some good thoughtss already – here’s mine too…. Keep the “numbers” in mind. What if you might need to wait 3 weeks to get someone to rent it at $420/wk? Or, opposed to that, what if someone will pay you $400 straight away?

Using those numbers as an example:-
Run the numbers, and you will see that you will lose $420 x 3 = $1260…[Read more]

This has been the most interesting poll thus far.

Even at the time of creation, I wondered if we should have an “All of the above” button. As of right now, four out of the five options are ranking between 22% and 28%.

Certainly several things are having (or could have) a major impact on real estate values. Perhaps it depends on which…[Read more]

This has been the most interesting poll thus far.

Even at the time of creation, I wondered if we should have an “All of the above” button. As of right now, four out of the five options are ranking between 22% and 28%.

Certainly several things are having (or could have) a major impact on real estate values. Perhaps it depends on which…[Read more]

This has been the most interesting poll thus far.

Even at the time of creation, I wondered if we should have an “All of the above” button. As of right now, four out of the five options are ranking between 22% and 28%.

Certainly several things are having (or could have) a major impact on real estate values. Perhaps it depends on which…[Read more]

Hi cs_rlewis,
Re this:-

As for the westnblue story, do you think his high rental yields are constant year in year out? If he’s bought in a mining town then perhaps the rental yields will decrease once a boom has finished – hence why hes only fixed his rates for 2-5 years.

A quick look at what he has bought, and I see some exposure to mining tow…[Read more]

One more recent read is a succinct post by BuyersAgent. In it, he talks of HOW to keep a portfolio growing. Useful comments re DSR, LVR and the balancing of the two.

https://www.propertyinvesting.com/topic/5014274-how-do-people-buy-multiple-properties/#post-5014359

Here is a teaser from it:-

Overall it is a balancing act between LVR and DSR.…

[Read more]

One more recent read is a succinct post by BuyersAgent. In it, he talks of HOW to keep a portfolio growing. Useful comments re DSR, LVR and the balancing of the two.

https://www.propertyinvesting.com/topic/5014274-how-do-people-buy-multiple-properties/#post-5014359

Here is a teaser from it:-

Overall it is a balancing act between LVR and DSR.…

[Read more]

Hi ZC,

is there any lenders out there that will be more generous?

From what I read from the Brokers on here, “Yes, some lenders are more generous.” More generous than yours? Well, that depends on who you are banking with. Share more information upfront, ZC, and you will likely get more useful information back to you.

And me? No, I am not…[Read more]

Hi Christina,

Does anyone have any advice on financing your first ip with nothing but cash in the bank and no income? We will have (roughly) 30k USD.

Since I gather from your words that you will be buying in the USA, I would suggest you check out the forum called “Overseas Deals”. In there, a few people are discussing the USA property market…[Read more]

I read both posts. I now realise that buying a $338K place for about $330/week is not ideal on a $200K loan. It would be much wiser to haggle the price to $318K, and aim for a rent of $350 upwards. At least then I’ll be heading in the right direction

Yes, you will – but think bigger again – if the $338k property can’t return $450+ per week, g…[Read more]