Earlier this year I set about restructuring my existing loan i.e. P & I to I/O loan, applied and had approved two other seperate loans (facilitated by a broker) and stayed with the same lender. Purchased 1st IP in June, looking very closely at another property under a SMSF shortly Was able to wrangle a 0.9% discount (off the std variable rate) f…[Read more]

Thanks to all for the responses.Having been an IT geek for years, I think I am finally ready to get my first MAC

Scott it’s on RE.com.au,

It’s only 5-6 years old(apartment) It certainly needs a good clean and fresh coat of paint, but we cannot get in to do those things before settlement. The vendor has allowed access during the settlement period to find a tennant.

so it probably isn’t being shown at it’s potential

Yes it’s on the web and has been for a couple of weeks, inner southern suburbs of Melbourne. Elwood, Elsternwick, Prahran area

Richard no need to be sorry, that is the exact reason I joined this forum, to get sound advice on the right structure. Looks like I need to have a new Savings account setup with a 100% offset facility against the PPOR loan.Thanks for the setting me on the right path.Chappy 

If i have my salary (and my wife's) go into the PPOR (IO loan with redraw) will this do the same? as it will reduce the interest on the loan and will still give me access to funds (via the redraw)?

Thanks Richard,
This is my first IP and after seeking advice from an expert, my wife and I recently converted our PPOR loan to IO.

Presently we have both mine and my wife’s salaries going into the PPOR IO loan.

We have a savings account, but this generally only holds a couple if hundred at any one time which is what we use for carry around cash…[Read more]

Terryw wrote:
I think the main effect may be a decrease in new properties being built as investors would be less inclined to invest in construction. However, most developers would not be negative gearing anyway so maybe this won't be effected.

Terry imagine the backlash from the building industry if this was to occur.

Richard is there a simple formula to use to work out what the monthly salary would be, incorporating interest from an IO loan of an investment property.My wife and I are crunching the numbers at the moment to determine what our purchasing power is.We have an Equity loan organised from my PPOR. The outstanding on the PPOR is $240K on a property…[Read more]

EV,What a concise and methodical approach you and your partner applied. I'm trying to cram years 10-4 (year learning span) into a smaller time frame, my wife and I have had our kids (no more for us ).We have considerable equity and now have the finance ready for the IP, I have received considerable advise on the correct way forward; r.e.…[Read more]

For clarity this statementSecondly, I understand that the agent first and foremost represents the buyer, but part of that obligation is to engage with buyers who display a genuine interest in the property For Sale. In this instance I don't believe this occurred.Should have readSecondly, I understand that the agent first and foremost represents the…[Read more]

Andrew whilst I see that you are in the industry I disagree with your comments. Firstly my repeated requests to the agent to get a viewing of the property along with my numerous queries regarding the price were evidence enough that I was serious about buying the property. I have enough to do without wasting my time chasing the agent on something t…[Read more]

Appreciate all the great feedback.We didn't think it was going to be a simple process, so we have learnt from it and have moved on.

Further to this, the other party finally go a viewing.

We promptly made an offer, this was taken back to the vendor by the REA.

The response was that the vendor was looking for considerably more.

The thing that puzzles me was that the item was listed as $XXX + and the Vendor wants 10% more than the advertised price.

I find this very unusual…[Read more]

SandraL wrote:
Interest Only loans give you more flexibility. A lot of people don't understand this, but you can pay down the principal on a  I/O loan just as easily as on a Principal + Interest loan, but you don't have to, that is the big difference. If you have spare cash, you can make extra repayments, but it is entirely up to you. Whereas on…[Read more]

First post for me, so much great information on the forum, thanks to all.Very much a novice investor, but have negaged experienced professionals to guide me through most of the pitfalls.Looking to purchase my first investment property shortly and am looking into a SMSF later this year.Very informative thread