Use your PPOR equity as deposits and legals. Get individual loans for each IP. That way they are not crossed with your PPOR and you can sell any whenever you like. I suggest to deal with one bank for the first few then switch. It's too much hassle having half a dozen different banks. Most people say don't borrow over $1.2mill with one bank.It's…[Read more]

People tend to buy emotionally. If it looks pretty they'll buy it. That being said if it looks pretty but the building report comes back with defects negotiations will ensue. Can't comment on double glazing, heat pump value as I'm in Sydney. It doesn't get that cold (except for THIS winter). LOL

No sorry. If you were renting the one you buy then you can but you can't legally just dump a mortgage on the first property then claim it. You can claim ONLY on money that is borrowed for investment. As the money will be used to buy a house you will be living in you can't claim. That's why people have offset accounts instead of paying down their…[Read more]

number 8 wrote:
A unit in Mt Druitt as a good buy?Depreciation as a factor or reason to buy? Definately for the selling agent to market the property as a good buy (refer below to see this is not the case). Good yield? Lets look at this…Buy $230k and rent for $310- Her goes the positive gearing salesman again? Further to the fact that it is n…[Read more]

do i just have 54k of equity because that is 20% of the original price of the property (20% of 280k = 56k) ??  YESYes- cross coll is when 2 or more properties are tied together. Some people borrow 100% or more on an IP but it is crossed with their PPOR so together they are under 80%..Get a line of credit on your PPOR. Use that for deposit and…[Read more]

obvious wrote:
hey guys whats does everyone think about the property boom ?

What boom???   You obviously don't live in Sydney.

Hi, the bank takes 75% (I think  or close to that) of the rent into account as you don't get all of that (with charges etc). If you are going through a broker tell them of your plan so they know how to structure to suit your needs. I would use the equity for deposit and legals. Get pre approval for a separate loan for the purchase. Best not to…[Read more]

Can I ask about your plan? You plan on selling it in a decade. Why? What then?What's your purpose in buying the property? Sounds like your goal is purely capital gain? How much money do you have for a deposit and legals etc? This will pretty much determine what you can buy. Also how much can you afford to pay out of your pocket each week. Why are…[Read more]

 Melb is PPOR you can move out and rent it and not pay CGT for 6 years. You can also claim sydney as a tax deduction (but will pay CGT on Sydney). If you move into the Sydney one that becomes your PPOR and you pay CGT on the Melbourne one. Work out the finances to see the difference in weekly costs and CGT benefits. But if you are renting a c…[Read more]

If you go to the Somersoft forum and look up Living Off Equity there are a few people following that strategy. The consensus seems to be that it is becoming more difficult (with credit squeeze etc).http://www.somersoft.com/forums/index.php

Hi, it sounds like you just want something written in case you change your mind. Is that ethical? Why not find a place you REALLY want. Get the pest and building and if there are no major concerns buy it. IF there are major concerns you're covered.Please explain – you sold a place that's 10 years old so you're wary of buying a place that's 10…[Read more]

blocka wrote:
my plan is to bye something negatively geared and when it gains enough capital gains sell it and use the equity to purchase something positively geared and then use its equity to purchase another negatively geared property and repeat this process over and over againassuming you have your own home to use as security…..using an…[Read more]

PC_Melbourne wrote:
Well we only started last year. Can give you our opinions on these topics: 1) Using Investment Companies – Not a big fan. Heard stories of companies going under and taking investor $$$ with them. Generally prefer to be in control my own money and decisions. 2) Big fan of off the plan purchases (Plenty of research and…[Read more]

JamesSampson wrote:
unfortunatley the cash flow days are gone. but all markets go in cycles so we will see them return again one day.

REALLY???    I'd say they are harder to find but definitely not GONE!!!Buy a run down place under market value (usually up for auction).   Do a reno and presto there you have it, instant equity AND cash flo…[Read more]

What's the price difference between the nasty and the pretty property? May be a chance to get some equity (as other poster mentioned).Are you buying this property or just looking?  Seems funny that you don't know about an area you are going to buy in. What's the vacancy rate like? Yield isn't wonderful so I'm guessing $260K is under market value?…[Read more]

Buy what you can afford, when you can afford it and where you can afford it. One expensive property that has a poor yield may stop you in your tracks.I believe in balance. That way you can keep buying.Also buying under value is they key. Get it revalued and use the equity to buy the next one. But serviceability is paramount. That's why I love CF+…[Read more]

I'd get a depreciation report done. There are too many things you can miss to make it worthwhile doing yourself. http://www.depreciator.com.au     is great. Send Scott an Email and he'll give you a quote. You'll get more than the cost back in one year. Well much more on a new place. I got back a few thousand on a really old place with no new fittings etc…[Read more]

Rlewis wrote:
  I live in Sydney and there are not many properties on the market for this amount or that need rennovating…..Plus I can't seem to find any websites that give info on properties like this on the market.RL

Sorry to disagree but there are loads of places sub $250K in Sydney that need renovating (that's why they're cheap). Some…[Read more]

If you house is worth $610 then the bank will most likely let you borrow to $488 (80%) so you could draw $38K. Don't forget yoy need purchasing costs as well as the deposit.Then if you borrowed 80% on the next property there would be no mortgage insurance. CF+ means Cash Flow positive. Do you know of areas where you can achieve  this?  "We are l…[Read more]

lisamills wrote:
My husband and I are considering starting a property portfolio and have calculated that we have about $40k in equity, which would mean a purchase price (keeping LVR to 80%) of about $210k (plus $10k in buy costs). We are wondering if there is anything out there that we could afford right now to start our portfilio off (ie…[Read more]