Hi Knox,
Maybe an earlier reply re a “IO vs P&I” question might help. Note how, using IO and Offset, you may CHOOSE to pay at a P&I rate, while keeping your funds in Offset. The result can be similar, but your flexibility is WAY higher by going IO/Offset than by paying P&I.

Especially, see the last post in the thread where I foretell a…[Read more]

Another area that raises a lot of questions is around LMI (Lenders Mortgage Insurance) – how it can be used, when/where it should be used, and why it makes sense to “gear higher” in some situations.

I am looking around for articles and threads that go into detail on this…. If you see one that seems well-written and could be used here,…[Read more]

Another area that raises a lot of questions is around LMI (Lenders Mortgage Insurance) – how it can be used, when/where it should be used, and why it makes sense to “gear higher” in some situations.

I am looking around for articles and threads that go into detail on this…. If you see one that seems well-written and could be used here,…[Read more]

Another area that raises a lot of questions is around LMI (Lenders Mortgage Insurance) – how it can be used, when/where it should be used, and why it makes sense to “gear higher” in some situations.

I am looking around for articles and threads that go into detail on this…. If you see one that seems well-written and could be used here,…[Read more]

Hi Mitch,
Further to what Jamie has said, do read up here :-
https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/

Some great answers to many questions – including “IP first, or PPOR”, “IO vs P&I mortgages”, etc. Enjoy !!

Benny

Hi Aque,

My goal is to buy a PPOR and aim at a strategy I can have all my saving in PPOR

I’d suggest you add the extra bit at the end that keeps your options open :-

My goal is to buy a PPOR and aim at a strategy I can have all my saving in an Offset Account against my PPOR loan….

See, though you might buy a PPOR now, you MIGHT, in later…[Read more]

Hi Aque,
It would be helpful to understand a bit more of your situation before we attempt to show you “another way”. Would you add more info re these questions?

Is buying a PPOR your next priority, or are you talking of paying down the debt on an existing PPOR?

PS Tell us more about the title – “Contaminated deposit” – how is this so? I h…

[Read more]

Is the landlord keen on selling the property though?

It is on the market now, so I guess “Yes”. Maybe the vendor can leave in 10% ………. – it’s worth a try.

Thanks for the thought.
Benny

Hi Buddy,
Use the instructions shown in this post to put an image in your post ;-
https://www.propertyinvesting.com/topic/4995714-youngest-nobel-peace-prize-ever-winner-malala-yousafvsai/#post-4996543

Benny

Check out some on here – a Mortgage Broker will be able to identify your lending limits, and an experienced one will have all kinds of useful knowledge that may not be advice per se, but will no doubt be useful.

Some on here are certified to give advice too – pick someone who posts here regularly, whose posts appeal to you, and have a chat with…[Read more]

Hi JZ,

Is it a sound strategy to find the right property and negative gear it for 2-5 years before it becomes a CF+ property?

That can work too – but so much depends on your situation. Negative gearing in an area of good growth can see Equity growth that makes up for the loss over time. But it helps to have an Income that can “ride a few…[Read more]

Hi Aque,

Any equity loan I draw from these IPs for my PPOR will be tax deductable.

As I understand it, such a withdrawal would not be deductable. The purpose of the loan determines deductability, not the asset which the loan is drawn against.

Your following comments indicate that you KNOW that, so I think your first (quoted) statement was…[Read more]

Hi JZ,

1 bedder unit for $320K that looks like it might be able to fetch around $320 per week rent.

Those base numbers don’t sound like +ve cashflow to me – it is only a 5% Gross return. Surely body corp costs, Rates, Insurance, RE mgmt fees would take this into heavy -ve geared territory, wouldn’t it (??). Or is the calculator doing tricky…[Read more]

Hi Wiwin,
A quick primer on average and median – average is derived from all sold prices added up and divided by number of properties. Averages can be skewed if sales are heavy (say) at the top end. e.g. imagine a suburb that has 5 houses sell last month – 2 at $250k, 1 at 300k, 1 at $400k, and 1 at $600k. Total is $1,800k – divide that by 5…[Read more]

Hi Brm,
There are a number of MB’s on here – I’m sure some of them will stop by to help you out. Meantime, do read this to help with some of your questions (some you may not know you have…)

https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/

Chase down the links in each post to read about that…[Read more]

Hi brmiau,
Oooh – watch out for this bit :-

My mortgage broker says I can borrow $280k without LMI or around $400k plus $30k for LMI and fees with the loan being 100%.

Your MB might be looking to cross-securitise your IP with your PPOR. DON’T go that way. Ask them how many separate mortgages are they looking to set up? If the answer is…[Read more]

Hi F,
Just a couple of thoughts that come to mind….

Does the location matter more than the amount of units? What land content is appropriate?

Probably demand is the big factor – you can have a great location, but if the block is unpopular (for whatever reason), it will likely remain so. Find out as much as you can re demand for these…[Read more]

Hi Ajay,
That sounded like a pretty good gross return, until the body corp costs hit. Rates shouldn’t be much more than $2k, so the body corp costs must be $4k? What do you get for that? Is there a security guard, or just electronic gates? Seems way high….

Re Eagleby, I have always thought of it as a “cul-de-sac area”. That has both…[Read more]

Hi Kurtuk,
As the others have already said, the “numbers” will tell you.

My initial thoughts were buying two places at $350k so that I can diversify etc, but this also means I will pay double stamp duty,

The Stamp Duty subject brings up an important point – first, each State sets its own Stamp Duties. I used Qld figures to get this :-…[Read more]