[MattParticipant@daf101Join Date: 2015Post Count: 6]

April 29, 2015 - 12:25 am

Hi Benny,

Thank you, that makes much more sense.

Cheers,
Matt

[MattParticipant@daf101Join Date: 2015Post Count: 6]

April 27, 2015 - 6:09 pm

Hi Jamie,

I might have an interesting question for you.

I’m looking at my first propert ever and I’m targeting positive cash flow however because I only have 5% of the deposit together, right now even on interest only if I’m lucky I’ll make maybe 30ish bucks a month (depending on the ROI on the property). So I’ve been throwing the idea of:

– Buy now so I can get into the market while it’s low
– Pay principle and interest over the next few years
– Once I’ve achieved LVR of 80% change to Interest Only to get a good positive cashflow

What are your thoughts on this approach?

Thanks for the previous info before, it has got me thinking
Matt.

[MattParticipant@daf101Join Date: 2015Post Count: 6]

April 27, 2015 - 3:23 pm

Hi JacM,

Thank you for your response.
Regarding your view on the large complex, if the flat is renovated with a newer kitchen etc, would this be more advantageous in your opinion if you were searching for a tenant?

When it comes to looking for a suburb to look in, so there an industry technique or standard that good investors tend to use to find it, then once they’ve found it, what’s best? A Unit or a house?

If I move into the property for 12 months as a first home buyer, will this remove the fee’s you mentioned before? (I’m trying to understand the tax implications that might have at this stage also.

Thanks again for your help and insights,
Matt.

[MattParticipant@daf101Join Date: 2015Post Count: 6]

April 27, 2015 - 3:16 pm

Hi Benny,

Thank you for your response. The reason why I’m thinking of paying Principle and Interest is because I want to have an LVR of 80%, then change to interest only. As a result, the repayments will be lower and the rent will be higher then creating positive cashflow. If I do pay the principle of in addition to the interest, am I able to still claim the interest as a tax deduction. Also, I was thinking of moving in for the first 12 months to claim the first home owners grant, do any renovations if needed and be able to sell the property CGT free in 5 years from now if I choose to. Would that impact the ability to claim the tax on the interest also?

Thanks for the link, I’ll be sure to check it out and take it on board.

Thanks again for your help.
Matt.