Hi ChrisAnother that I like to tick off the list is "value add potential" – I like to purchase IPs that can be cosmetically renovated for instant equity gain. Helps to build the portfolio quicker.CheersJamie

It is quite a broad question but if it's high yielding type stock you're after – I'm thinking you'll have to start your search way out west. Pick up a copy of API or YIP mag and scan the back pages that contain suburb specific data such as growth rates, rental yields, vacancy rates, etc. This should help you narrow down your…[Read more]

Qlds007 wrote:
Oh Terry under NCPP being a Broker is like standing in a downpour without an umbrella.If the reems of paper work doesnt get you the ongoing compliance will.Thankfully finding and Broking European properties doesnt require so much time  / paper.CheersYours in Finance

Tell me about it….and it's only going to get worse.I guess i…[Read more]

Lalibella wrote:
Not totally off topic….recently a friend was told by her MB that he now charged $350 for all new loans.  (NSW) Is this common practice now?

Some brokers are switching to a fee for service model. There are number of reasons behind it – particularly the reduction in commission from lenders coupled with the removal of DEF.CheersJamie

I was using Ray White and wasn't overly impressed. They've since been bought out by PRD and the service levels have improved. Hope that helps.Jamie

Usually you can get away with a simple IO loan split as opposed to a LOC. Perhaps explore that option with your lender/broker as well. It should be a little bit cheaper.CheersJamie

Jameswood wrote:
Great thanks for that. That has answered my question. So I assume the line of credit it also paid off over 30years as if it was shorter the repatments would be higher and affect your cash flow..??? is that correct???

Just make the minimum interest repayments on that facility. Any extra payments should be placed on loan 1…[Read more]

Terryw wrote:
No, this is a knitting appreciation site!!!!!!

Haha – they actually exist! http://www.knittingforums.com/CheersJamie

Catalyst wrote:
Or is your post just a plug for the link??

I think you've hit the nail on the head. The post made little sense to begin with.Jamie

Ol Painting wrote:
As for Supervision fees (whatever it is) – why I need to pay it at all? Whatever supervision they use – isn’t it part of their Management Fees?

That's a first for me – I've never heard of such a fee before. The sundry/postage line item is standard stuff but it really should be part of their "management" fee…[Read more]

Hi Nick Some ideas to improve cashflow if you decide to keep it.  – Get the depreciation schedule done  – Set the loan up as interest only  – Look at refinancing to a more competitive loan (assess the costs involved before doing so)  – Are you getting market rent? Is their anything that you can do cosmetically to approve the yield? Have you con…[Read more]

Jameswood wrote:
Hi GuysJust a little confused about how using equity as a deposit for another IP is structured. If you have property 1 (20k equity) and want to use that equity for IP 2, how are the loans set up . Do you have the original loan plus a line of credit loan and the new property loan (effectivly paying 3 seperate loans) or does the…[Read more]

Hi JRedraw equals new borrowings. So whether the funds are tax deductible depends on what you've used those funds for.Best to set this up as IO with an offset account. Instead of placing funds into redraw – you place them into your offset. CheersJamie

Hi BeefzWelcome to the forum.It sounds like you're in a decent position and I personally like the idea of purchasing an owner occupied property first.As you alluded to – you can take advantage of the Govt. concessions which will save you some money. You can also spend some time renovating the property whilst you live in it which effectively adds…[Read more]

photon2157 wrote:
By investing in low income areas, are you foregoing capital growth in favour of cash flow?

I don't think so. Look at areas that are considered low income such as Logan in QLD and the far northern burbs of Adelaide – their growth figures over the last decade have been quite good. Admittedly the prices are also coming off a…[Read more]

Hi AdamDo you plan on holding onto this IP for the long-term? Property will have its ups and downs – personally, I know I'd rather be buying while the market is on the decline rather than an upswing.Ultimately the decision to purchase or not is yours – however, the doom and gloom of the property bubble bursting has been around for as long as I can…[Read more]

laying plans wrote:
Hey So we have layed a plan of attack for our investment future. Our end goal is to be able to live off property. So passive income is the goal.  We like the idea of renovation to increase equity to fund further purchases. Buy and hold is also and option. Any further help would be appreciated. Only getting few responses from…[Read more]

I agree with Catalyst above – investing in property primarily to  reduce a tax bill is a flawed strategy. The tax benefits associated with property investing should be treated as a bonus.I also agree with JacM – those that are proactive and creative will do well out of property.CheersJamie

Hi dct 2011This has been asked quite a few times recently. If you do a quick search you should find a lot of info. If the search function on this site doesn't work just use google.CheersJamie

luke86 wrote:
Real Estate Riches

Yep that's the one I was thinking about! It's a good read for someone starting out – explains the fundamentals really well.CheersJamie