Sebastian Shauw wrote:
Last year, for example, residential property price growth showed dramatic changes during the course of 2010 – peaking around mid-2010 at 11,1%, and slowed down significantly to an average of 2,6% y/y in the second half of the year.”

Hi Sebestian

I take it those figures are a snapshot of how South Africa as a whole has…[Read more]

pinkboy wrote:
1 minor setback maybe that you can expect some of the most horrendous rates and body corporate prices in Qld.

That was one thing that came as quite a surprise when I was searching for an IP up north – more specifically Logan. I was able to find some decent deals but after taking into account the high rates and body corporate fees…[Read more]

Corie wrote:
One strategy that i have seen used successfully, (by my partner's father) is create as many incomes as possible from the property. things suchs as converting a bungalow into a self-contained flat, or splitting a 2storey house and renting out the top and bottom levels seperating are ways positve cashflow has been achieved by…[Read more]

Hi Ricky

Herron Todd White publish the “Month in Review” which places each capital (and some regional towns) into a category of rising, declining, bottom of market, etc. The Feb edition is available here – http://www.htw.com.au/Month_in_Review/Month-In-Review-February-2011.pdf

Cheers

Jamie

Hi Propertyboy

The rate you’ve got sounds ok. You could probably get something a little better but you (or your broker/banker) would have to work out whether the exit/application/govt. fees associated with refinancing three loans will justify a small decrease in interest rates.

Do you have any concerns with your current lender(s)? Are they…[Read more]

Best of luck with it Big Teddy.

I personally took that approach to kick start the portfolio – 90% + LMI lends. This allowed me to purchase multiple properties within a short space of time rather than pouring all my equity into into a large deposit for one IP.

For the record though – I’m not recommending or endorsing any particular method.…[Read more]

Hi KLZT

Welcome to the forum.

Those numbers ($265 p.w on a $160k purchase) sound pretty good and are not unreasonable. Where are you looking to purchase?

In terms of rushing into things, only you can determine that. Have you carried out research on the property that you’re interested in?

Start with macro factors:
What are similar properties…[Read more]

No worries, best of luck with it. CBA’s equivalent of an offset is called the MISA account. Just ask for them to set one of those up against the loan.

Cheers

Jamie

It all depends on Keiko’s individual risk profile.

Given that he/she asked about high LVR loans in the original post I’m assuming that he/she is wanting to take an aggressive approach towards investing.

If that were the case, that 20% deposit could be spread-out across multiple smaller deposits to secure multiple properties within a short space…[Read more]

Cattaby wrote:
I'm in a similar situation to you Francesco – I purchased a city apartment, but am currently renting with friends. My apartment is currently renting out for more money than the mortgage repayments (yay!)I can't see myself moving back into this property, but I also can't see myself selling it (as it's such a nice little cash…[Read more]

Hi propertyinfo

Brokers generally have software that provides this info and is updated frequently.

A website you might find useful is http://www.theadviser.com.au/ It’s a publication for mortgage brokers but it does have regular updates on what lenders are doing in terms of changes to their policies, promotions etc.

Cheers

Jamie

Pre GFC lending might have also helped.

Cheers

Jamie

SD – Stamp Duty (also a rip off)

Residex is a useful tool for due dilligence – however, I would be very reluctant to base a property purchasing decision on it alone. In my experience, the values it generates usually seem reasonable – but there are occasions where the value is over/under by quite a bit. Remember also, the street rating that’s chosen in the report can dramatically…[Read more]

Hi Jherden

Welcome to the forum.

The choice is ultimately yours, but here’s a few other things to consider.

The costs involved in selling property (such as real estate fees, bank exit fees, etc) can be quite significant- so while you’ve got $40k in equity at present, this can be eroded quickly after the properties been sold.

Look at your…[Read more]

xdrew wrote:
I've been watching too much CSI:Miami … I think if you check the age of the maggots you can probably work out which tenant is missing and for how long.I've been lucky .. i have seen most of the impossibles with rental property. The cupboard which opens to streaming cockroaches, the tenant with 9 cats who decides to leave them all…[Read more]

number 8 wrote:
An analogy: A child will grow with the right nourishment, when you feed your child extra they don't grow faster…just fatter (the abesity epidemic). The same applies to a mortgage. Why not feed another child…. or in our case another property that will also grow in value…. Now we are making money….. I hope this Mcknight guy…[Read more]

Hi Petrik

Welcome to the forum.

The test that determines whether a loan is tax deductible is “purpose” – what are the funds being borrowed for? If you’re increasing your loan to access a deposit to purchase a PPOR, that increased portion would not be tax deductible.

However, you are in a good situation due to your offset account. You should be…[Read more]

pauln wrote:
Also you siad I have never made a repayment in my life – can you explain how you did this?

I think he means he’s never paid off principle.

glsmith wrote:
What should my loan structure be?  Should I just get Interest only,or a P/I loan.

Hi Glsmith

Welcome to the forum.

I’d set it up as IO – particularly if you have another PPOR you’re planning to move into later on. As a general rule, it’s ideal to have IO for your IPs – and either IO with an offset on your PPOR or P&I.

Cheers

Jamie