You don't need to go to a new bank. Just get a LOC (as you said) on IP1 and use that as a deposit. Get a separate loan for the next. Repeat with IP3 etc.

saurin_83 wrote:
I am newbie in proprty investing and potentially looking forward to financial freedom through property investing. My long term goal is capital growth from property investment rather than cash flow.Saurin

Hi, just curious- What are you going to live on in your financial freedom without cashflow? There are ways, I'm just curious…[Read more]

You can claim you LOSSES. as mentioned above. Add everything up that you pay, take out the rent. You deduct what's left. Unit LL insurance is only $300 (tax deductable). More if you don't use an agent.You can let it yourself but do you know the rules and regulations? How to choose/get a good tenant? etc. Speak to an accountant that has a property…[Read more]

So are you $70- just on the interest payments minus the rent? OK add up all the ouitgoings for the year (Interest, rates, insurance, managements fees (6%- depends what state you are in) THEN take away the rent. That's how much you are negative. This is how much you can claim on your tax. Think about getting a depreciation schedule, that will save…[Read more]

I would always choose buying. But renting may be better for you if you want to live in a certain area. eg if you want to live close to the city you'd be better renting as yields are low. BUT I'd still buy in an area that has better yields and rent it out. That way you are at least keeping pace with the market and can buy in your desired area down…[Read more]

Terry is correct. Check your rates notice. I was actually surprised with one of mine. It's a small unit worth $280K. Land value is $100K. Small block but I was VERY surprised.

I don't bother with building and pest inspections for units.  If there are any issues they will be in the strata report.I think getting all building, pest and strata is a bit of overkill.

Yes people do buy sight unseen but they usually have:-done their due diligence on the area, the prices, yield, CG etc. Have you done all those things? Do you know the area is what you are looking for? Is the street a good one? Is the infrastructure there? What is planned for the future? Is the price under market value for the area? Is it…[Read more]

House Call wrote:
tongue in cheek, ladies.  Tongue in cheek!

haha. After I posted I thought that may have been the case. Haven't had a chance to check back. You're forgiven then. Sometimes agents ring my hubby. He just tells them to ring me. He knows how many houses we own but that's about it. He'd die if he knew how much we owe the b…

First get a new accountant that will spend more than 30 seconds explaining how it works. Rent is an income. Take away all the costs (Management fees, Interest, rates, repairs etc) take that away from the rent. If you get a depreciation report you take that away too. If the expenses are more than the rent you claim that as a tax right off. You can…[Read more]

Maybe your broker was assuming (by increasing equity)  that you meant you would pay down the loan. If you did that THEN withdrew that money for a PPOR THEN you certainly would NOT be able to claim tax benefits.If the money was placed in an offset account then withdrawn, that's another matter. Get it right with this or you can lose thousands.…[Read more]

I have one small LOC that pays everything. The interest goes out of this into all the loans. All the bills are paid out of this same LOC. All the rents go into this LOC. Easier for the accountant. He only needs to look at this one LOC. The interest on this LOC comes out of itself.Hopefully soon it will start going down and paying itself off.

House Call wrote:
I have a Y chromosome, and  I have sometimes found the exact opposite.  I get ignored while my wife is fussed over and shown the beautiful benches and the lovely shower or bath or the wall oven or bla bla bla which I think springs from the view held by some RE Agents  that if they can get the girl to fall in love with the pr…[Read more]

You need to look at it in perspective. If the area is a good investment then yes by all means buy.  But to buy BECAUSE you can get a $1,000 a year holiday doesn't make economic sense. And remember the trip is tax deductable NOT paid for by the tax department. Better to buy a property that will have the best financial outcome and that will pay for…[Read more]

Question 1- Is your accountant involved with this group?Personally I wouldn't touch it with a barge pole.  Any comprehensive package comes with payoffs and risks. If they are financing, etc you have no guarantee that the price you pay is market value. If you have to finance through a bank they will only lend you the money on market value. If t…[Read more]

The bank may do a desk top valuation so may not even go there.

Try to get onto Carly Crutchfield. That's how she started. No-one would give her a go so she worked for free.  But I'd say you are not the first to offer free time. Just offering to do free work in your spare time doesn't really show a willingness to jump in. There are some who are willing to work free anytime.

I'd stay with St George (separate loans for each IP) until you reach $1Mill then move. 

NO. Agents tell you that all the time. The only reason people don't do it is because the tenant CAN take you to tribunal. But if it's way under market they don't really have a case. I've put some up $40 a week after buying ones that had low rent with no arguments. 

If they are on expired leases you can put the rent up any amount you want. They MAY take you to tribunal but if it within market rent you shouldn't need to worry. Some REA suggest the slow method but if it is so far under rent that's too much money to loae by doing it that way. Go to another agent if they suggest that.Check out Real Estate.com to…[Read more]