goldies wrote:
P.S Read Margaret Lomas' book – 20 must ask questions for a property investor. I used this book to purchase my first property. You do not need to spend thousands on a buyers agency when this book cost $20…..P.P.S: just do it!

I agree with Amanda. Grab that book…and a few others. Keep reading/learning (books and forums like…[Read more]

Hi DeanOTP purchases can be higher risk/higher reward.In a rising market, an OTP purchase can do very well. This is due to the lengthy time between exchange and settlement – during this period, your OTP purchase may have experienced some growth and could be worth more upon settlement – everyone loves instant equity!.However, on the flipside, w…[Read more]

I used my PPOR to leverage into property investing – in fact, I'll probably top up the old PPOR again in the very near future to purchase the next IP.

Hi MentobeI don't think the bus is going to be a hit. However, do stick around and tell us more about Wagga – questions do keep coming up about the HC areas and buying CF+ out that way, so it's good having someone on the ground who can answer the questions…..but in the spirit of the forum, it shouldn't have to be paid for.

Yep, good call. Start deducting those API and YIP mags as well – plus any IP books you might purchase.I should have mentioned in the other post – if you want to get an idea of how much you can depreciate, you can get an estimate on this website – http://www.corpred.com.au/

Hi propertyboyIt might be best to call whoever regulates tenancies in your state. You could call a PM and ask also.If they can't be "bothered" to may monthly rental repayments, get them to set up a direct debit and be done with it. CheersJamie

Hi PlutoSure, I can look into it for you if you like. Just shoot me an email.CheersJamie

Hi Coach GarvinWelcome to the forum.It's a frustrating situation. If you're comfortable with shooting me an email with some more details I can make some calls for you tomorrow.

Hi SeanWelcome to the forum. I'm sorry to hear about your situation. This is one of the examples why cross-colleterisation should be avoided.If the default has hit your credit report then refinancing to another lender could be very difficult. Normally, you might be able to refinance the remaining loan (after the sale) to another lender and access…[Read more]

investhut wrote:
hi all,on my home bought for 220 K i currently own 25k. home should be worth around 240K i guess…

Do you have a mortage of only $25k or have you paid $25k off your mortgage? I'm just a little confused about the word "own" in the first sentence – I think you have meant "owe."

investhut wrote:
here the forum members suggested…[Read more]

Dan42 wrote:
Another option is to look at buying a PPOR where you can add some value through renovations. THis way y9ou get your own home, but a reasonable investment as well, which will be CGT free when you sell.

Yep, good call Dan. Also, after you've added value to your PPOR you can borrow against it for another IP! Another benefit of having…[Read more]

Din's right – the beauty of negative gearing will reduce the amount you have to fork out of your own pocket. Make sure you grab a depreciation schedule and it might also be an idea to convert the entire loan to IO.CheersJamie

Hi NaledgeI usually factor in about 5% give or take for purchasing costs. However, everyone's circumstances are different. You can use the stamp duty calculator on my webste to work out that cost  – http://www.passgo.com.au/calculatorsIf you want a more detailed breakdown of costs feel free to shoot me an email. 

I think Richard might be posting from the otherside of the world (Europe) at present.

No probs – that's the great thing about the forum!I agree with Richard's approach (in terms of reducing the non-deductible debt). However, just make sure that your bank won't make life difficult when you do apply for the top-up (the new legislation can make things fun) and also ensure that they'll top-up to a high enough LVR (in your case 90%) in…[Read more]

naledge wrote:
I thought I might as well add; the reason I'm doing this is because I need financial security. I grew up in a low income household. I don't want that anymore. I want to be financially stable in the future, I want assets, investments that I can rely on. I want to have a comfortable life and a comfortable retirement, not living from…[Read more]

Hi NaledgeYou generally have to provide 5% genuine savings over at least a 3 month period. There are other costs involved in purchasing as well such as stamp duty (which there's often concessions for first home buyers), legal fees, govt. taxes, etc.

Yep, good advice as always from Terry. Another reason for the IO option is that if you ever plan on owning a PPOR in the future, you can take the cash from your IP offset (which increases your deductible debt) and place it on your PPOR (reducing your non-deductible debt).CheersJamie

Hi WallalongInterest only loans do allow for greater cashflow. You may be able to mitigate the risk of no growth by carrying out due diligence on the areas you're looking to invest. If you're concerned about not paying off the loan, you can always set-up an offset account against the loan. You could make regular repayments into it – which has the…[Read more]

Hi naledgeWelcome to the forum.Age is only a number.The bank doesn't care that you're 19. They care that you have a) A deposit to put towards the deal b) That you can pay the loanYour right about that $15 p.w profit not being worth it. It would be a waste of time. However, what if that $70k unit was worth $140k in 10 years time? Is it now worth…[Read more]