[boshieParticipant@boshieJoin Date: 2006Post Count: 52]

November 26, 2007 - 8:42 pm

Hi Simon,
Thanks for your reply….    We would be looking at living in our PPoR for approx 10 years – so is this considered short or long term?
Cheers, Boshie

[boshieParticipant@boshieJoin Date: 2006Post Count: 52]

September 1, 2007 - 1:58 am

Thankyou to everyone who has replied….   The knowledge is invaluable…

We are still doing the finishing touches on our PPoR and as soon as this is done we will look at refinancing.   We are hoping to get enough equity to put a 2nd level on top plus have enough to give us a good deposit on our 1st IP and only have to lend 80/85%…

Thanx to Foundation for your words or warning..  I will speak to my accountant to see what we can do..
Thanx to Richard for your financial advice, I'm sure I'll be needing lots more to see us thru our big adventure.
Thanx to Sue as you've helped inspire me and we are thinking along the same lines, ie using LOC on our PPoR for deposits and having a seperate IO loan on IP's
Nucopia, thanx for the offer but we are really hoping to be able to fund this ourselves, however in saying that, we still need to convice the lender that we are serious..

Boshie

[boshieParticipant@boshieJoin Date: 2006Post Count: 52]

August 22, 2007 - 1:53 am

hi duckster and marc,

thankyou so much for taking the time to explain…   i appreciate every bit of help i can get…    

[boshieParticipant@boshieJoin Date: 2006Post Count: 52]

August 18, 2007 - 9:45 am

so this might seem crazy… but what (if any) facilities are available for childcare in the mines…    
Our PPoR is on Sydney's northern beaches but we could easily rent it out for around $600pw. 
We have 2 boys – 4 mths and 22 mths, so they are both really young, however i'd be more than happy to do some hard yakka for a few years providing I could be back in sydney for them to start school, so that gives me 2-3 years.
However, if we went to the mines then I figure I might as well work too and save like crazy !!!      My partner could do the 4 weeks on and one off but obviously this wouldn't work for me (nor would I want it to…)..    So what would be the options for a mum who wants to be with her kids everyday…  is there some sort of part-time option where i could work a few days but be able to spend the evenings with the boys??      And would the part-time money be worth the cost of childcare (if there is any)…

[boshieParticipant@boshieJoin Date: 2006Post Count: 52]

August 18, 2007 - 3:51 am

hi nina,

congratulations on being sooo determined…   where there's a will, there's a way !!!

I, like you, am in a similar position.  We have 2 small kids and I am not working at the moment, however I will be starting up nightwork in the near future as this wont cost anything in childcare.    I am a restaurant manager so I can go back to doing that 2-3 nights per week which really helps with the $$$$..   It'll be tough and I get a bit tired and grumpy but I figure it's only for the short-term and if we end up with a great portfolio then it'll all be worth it..    Maybe its worth having a look for some nightwork, waitressing, stacking shelves in a supermarket – it all helps and its only short-term.

I am also a novice and trying to obtain my first IP (Investment Property), we have no cash or assets, however we do have some equity in our PPoR (Principle Place of Residence)…    you'll soon learn all the "lingo" after hanging out on this site…

I found this website a fantastic source of information, just remember that everyone has their own opinion about the best way to invest (and there are many different ways and everyone thinks they know the best way…)…   the best way is what suits you and your budget !!!       Also, the Jan Somers and Steve McKnight books have been fantastic and you can always source these cheaply on Ebay or 2nd hand shops..    

We are not in a position to invest at this time, however this time is not wasted as I am continually reading and learning when the boys are napping during the day or after they go to bed at night.    Knowledge and research is invaluable, then when you're ready to "jump in" you've already done the hardwork of investigating..      Dont ever give up and think you cant do it…
I've been told we are not in a financial position but I'm determined to find a way, even if I have to get a low doc loan with slightly higher interest rate because I figure if we buy and hold for CG (Capital Growth) then the higher interest rate is irrelevant and after a few properties we can easily re-finance and get better rates…  

I dont know the "ins and outs" of the legalities of your fathers property, but I'm sure someone will give you some insight and I'm sure there'll be a way you can use it to your advantage to get your first property.     Is your husband handy??   Because even if you buy a rundown old shack and renovate you'll soon get some equity and be in a position to get your next IP…    We bought a dogbox 2 years ago but luckily my hubby is a builder and we've already added over $100k to its value so this will help us get our next one..    It's the best way to start if you can get into your own place and renovate…

anyway, this is just my opinion from one newbie to another..   good luck

[boshieParticipant@boshieJoin Date: 2006Post Count: 52]

August 16, 2007 - 9:43 pm

hi terry,

thankyou so much for your reply…   we will look at whats available with our current lender and hopefully take it from there…   

if it's going to get us started do you think it's worth "wearing" the higher interest rates of a low doc loan?    and do you think it's better to go for an 80% lend as opposed to say a 95% lend?    I'm assuming the pros and cons are that an 80% lend is obviously better interest rate, no mortgage insurance (dependent on the lender of course) plus more chances of obtaining a cf+ property, whereas a 95% lend, whilst higher interest rate + LMI would be payable, it will free up more funds if we wanted to look at a 2nd property…    

Which would be the better option?     I'm assuming that an 80% lend would be better for us starting out, less riskier i guess…

boshie

[boshieParticipant@boshieJoin Date: 2006Post Count: 52]

August 16, 2007 - 2:07 am

Thanks Richard for your reply..     We are both REALLY keen to get started and we figure there's just GOT TO BE A WAY !!!

If anyone could recommend what we can do to get started it would be greatly appreciated…   Our situation is this:

–  have a $505k mortgage currently owed on our PPoR
–  PPoR valued at around $700k
–  currently paying P&I (am happy to switch to IO if it will help however we are locked into a 3 yr fixed rate so i'm assuming there would be some hefty fees to break this contract)
–  would like to start with a small IP, say around $200k
–  partner is a builder, so reno's are no problem to add value
–  would like to purchase with CG being our main objective
–  want to purchase 2nd, 3rd, 4th, etc IP's as soon as practical
–  assuming we would need to apply for a lo doc loan considering my partner is in low wage bracket (thanks to our creative accountant) and i'm not working (although will be going back to work soon part-time earning approx $300pw after tax)
–  we have no other assets (ie shares or available cash)….   however we do have a well trained border collie that i could rent out for weddings, parties, companionship, anything

I am continually reading, learning, reading, learning from experts on this forum, reading books, etc and have gained a huge amount of knowledge…   however i'm finding that the simple basics of getting started are confusing me the most, particularly the financials !!!   

If the bank revalues our home and says its now worth say $750k, what sort of equity does that give us?    And how do we get that equity??     Do we re-finance (remembering that we would probably have to refinance on a lo doc loan)?     And will refinancing increase our mortgage repayments??    Or do we get a LOC on our current mortgage and does this increase our repayments?   What's the difference??   I really have no idea how this basic stuff works…    So assuming we either refinance or get a LOC (and i dont know which is the better option) and use that equity as a deposit for our 1st IP then does that mean we get another loan or does it add onto our current mortgage??   

If paying a higher interest rate for a lo-doc loan is our only way then we are happy to go for it, knowing that the CG of our IP's will hopefully outway these higher rates…    Is there a point where the banks/lender will be happy to give us a competitive interest rate in the future (ie after purchasing a few properties and they know we are credible)…

Please help as I'm so confused and mind-boggled and i really want to get my head around it confidently.    We are so keen and there's GOT TO BE A WAY ….   We are hoping to be in a position to purchase (at least) one IP every 12 months for the next 20 years or so …