Hi NM7Looks like Terry answered it.Put simply – when you used borrowed money for investing purposes, it's deductible.When you use cash, it isn't.That's why I mentioned in the previous post that if Dreaming Big was going to purchase another IP, it might be an idea to use the banks money (borrowed funds) rather than his/her cash from the…[Read more]

Hi there

If you’re going to buy an IP in wagga I’d recommend that you actually hit the ground and check it out in person. There can be good and bad patches on the one street in some areas.

Generally speaking, Tolland, Mount Austin and Ashmont have a lot of the ex dept of housing stock that’s constantly auctioned off by LJ Hooker. There’s some…[Read more]

Hi Chris

The ABS can be handy. There’s also a heap of links on our website that might help http://passgo.com.au/property-data-websites.html

Cheers

Jamie

What Terry said. Even though you've got the equity – if you're not generating an income, you won't be able to access it. CheersJamie

No worries at all – I'm glad you found it useful.CheersJamie

Thanks for the wrap Richard – yes, have plenty of clients accross the border so location is not an issue.

Cheers

Jamie

I'm always interested to hear from Terry Ryder and Margaret Lomas – thanks for sharing the link, I've also placed it on our Facebook wall.CheersJamie

Fair enough Hank – I just call it as I see it. CheersJamie

I guess it comes down to personal preference. I actually lean towards purchasing a PPOR first and then using it to get into investing. Particularly if the PPOR can do with a cosmetic reno that adds equity early on. That way, you can kick start the investing sooner rather than later.CheersJamie

Godhav wrote:
I'm working with Hank / Hoa at Homeloan Experts for my homeloan application and saw on their website at http://www.homeloanexperts.com.au/about_us/testimonials/ that they did secure homeloans for clients with a 457 visa.Hope this helps!

Hmmm…..first post….spruiking a business……then said business appears in same…[Read more]

Hi AdiskayWhat you're asking will pretty much come down to your borrowing capacity and whether you can service the debt on a PPOR and an investment(s). Your best bet is to get a decent broker to crunch the numbers for you to see what's achievable. I have had quite a few clients use their first home to leverage into property investing. CheersJamie

greentitle wrote:
  The other option is to find a house in a decent suburb that I can slowly renovate while I stay there to create equity for more purchases. 

This is what I've recently done. The market here has stagnated a little (particularly around the middle to high end) – it's not going down but there are some good opportunities. I r…[Read more]

lila77 wrote:
I'm also looking for my next book, maybe another margaret lomas one? 

Have you read the 20 Must Ask questions book? I thought that was a pretty good one. Scope out ebay for second hand investing books. There's usually a few bargains to be found.CheersJamie

Dreaming Big wrote:
Thanks for all your comments. I really do appreciate it!Jamie, we do plan on turning our PPOR into an IP eventually and we also plan to be very active in the propery investing area and not just buy one or two but more like ten or twenty (depending on how many we need to get where we want to be). I understand that how you…[Read more]

Josef wrote:
Hey Mate, There is absolutely no benefit in having an offset account if its your PPOR. You should be able to have a redraw facility on your home loan which is pretty much the same thing. The only benefit of an offset account is for investment properties as this offsets the interest you pay on your home loan and still gives you a…[Read more]

It does provide flexibility but if Dreaming Big is looking to tap into equity in his PPOR to use it towards an IP purchase, it might not be best to use the funds from the offset (because it won't be deductible). If he/she thinks that their current PPOR might become an IP one day. Then it should be set-up as interest only with an offset now (I…[Read more]

Hi Dreaming BigWhat are your longer term plans for your PPOR? Do you ever anticipate it turning into an IP at some point?CheersJamie

Aaron_C wrote:
Yes Terry is very knowledgeable and he'll be able to help you out. It would be a crying to shame to waste the inheritance and hopefully you can invest it wisely from here on.

Whoa that's some fast typing. Five posts in less than 10 minutes must be a record!CheersJamie

Cheers Waydo – that's a handy little list. I'll be coordinating a big reno soon so it's nice to have some sort of a reference point.Jamie

hornbill wrote:
1) Based on the above figures, is my property a negative or positive geared property, if I were to lease it out?

You just need to add up the costs per week. If the rent is higher than the costs – it's positive.

hornbill wrote:
2) If positive geared, what are the recommended strategy to reduce my tax liability (if any)?

There's…[Read more]