Yes indeed.  I've already told my younger brother all about this – putting surplus funds into an offset account and not onto the mortgage, and convert from P&I loan to IP loan as well if possible and cost-efficient to do so.Thanks heaps guys!  This is incredibly helpful and critical towards my current decision-making process

Stay away from investing in serviced apartments.  Do a search on this site…. there is plenty of info to read on why it is a bad idea.  In a nutshell, they just don't have the all-essential capital growth (in fact just by watching http://www.realestate.com.au, I've observed a particular serviced apartment building's dwellings actually go down in v…

Depends on the suburb, and the target market (ie who your tenants will be).I'd go with the extra loungeroom.  Yards require gardening maintenance which is annoying.  Furthermore, gardens do not earn rent.  Rooms with rooves over them do.  Now about this extra loungeroom… could it instead be a bedroom?  Or a bedroom and a study if you spend a tho…[Read more]

Right okay.  Damn I wish someone in the know had pulled me aside when I bought the house and said for gods sake luv, interest only with offset.  None of this principal and interest business nooooooo.Thanks Terry. 

@Dan: yep I could remain in my current residence for another year or two, but keen to move at or before the two year mark.@Terry: indeed.  I have done those sums and the sums say sell   I hate that.  I like the rule of never sell.  Such a waste of stamp duty, legals and selling fees!  I was kind of hopeful someone would spring up with some innov…[Read more]

Woo hoo!!!!!!  Well done!  You are on the ladder and now you shall prosper   Don't discuss it with those not interested in investing.  They'll say all sorts of things to make you doubt yourself.  Remember how much research you have done to assure yourself that it is a good idea, and talk to such folk about other topics such as cinema.  Don&#0…[Read more]

I'm confused… you are unhappy with living in a building that provides you with security against the undesirable types that roam around Sydney?  Mate, these matters would definitely not be on my radar as "property management issues"

It's a pleasure to entertain

I am retarded.  It is McDonald Ross I'm thinking of.  Not sure how I got Alexander Bell from that!

Alexander Bell

Your concerns are justified.  I'd be speaking to my solicitor if I were you.

When you buy off-the-plan, you essentially get to see a piece of land where a developer proposes to build a dwelling.  You only get to see plans and artists images of the proposed dwelling.  You pay less stamp duty when buying off-the-plan, because the dwelling doesn't yet exist.  So you effectively pay stamp duty only on the land price.  When buy…[Read more]

propertyboy wrote:
This states otherwisehttp://www.echoice.com.au/mortgage/home_loans?pn=/info/home_loan_types/offset_account.htmlInterest you make offset by interest you payTherefore, bank could essentialy make a "margin"

What in the article has brought you to that conclusion?  I don't see it   This article seems to be about a P&I with full of…[Read more]

Qlds007 wrote:
You wouldnt go to a Dr or had never done an operation but had read the surgeons manual and therefore you shouldnt use a Mortgage Broker who doesnt own any investment properties.

Haha great example Richard!

I'm happy to pay asking price if it is still a good investment and the numbers stack up.  Better still if I can get it on a long settlement which saves money on bank interest anyway  

Here are some of the big ticket "due diligence" items to look into:- What has the average annual capital growth of similar properties (in the same suburb) been over the past 10 years?  (You can find the answer in the statistics pages at the rear of the "Australian Property Investor" magazine, which your local newsagent should stock.  You want a m…[Read more]

Which banks have you tried??  I'm a contractor and therefore ANZ hated me, but CBA was more than happy to give me money.PS you'd be best of using a broker that knows which banks will say no to you and which are more likely to say yes.  Don't apply directly yourself or you might simply end up with a string of "NO"s listed on your credit file.  No…[Read more]

You do not earn interest on monies in an offset account.  However the amount in the offset account reduces the "principal amount that is charged interest".Using this strategy, you don't pay off the principal.  You simply aim to have your ofset account balance equal to the principal amount…. at which point the interest payable would be $0.

Pleasure!Many investors prefer IO loan with offset account, because they can withdraw the money from the offset account whenever they want, and do not have to pay a fee or make an application to do so.  So you could put all your spare cash in the offset to save on interest on this property, and then when you have a lot of money in there, you…[Read more]

The interest rate would be the same on an IO or a P&I loan.  So in essence, if a P&I loan required you to pay $1400 a month, but an IO loan required you to pay only $1000 a month, then if you chose to get an IO loan, you could pay $1000 month to that to cover the interest, and deposit $400 a month into the offset account, and you'd achieve the…[Read more]