Oh, and welcome to the forum! How rude of me

If you haven't already set your home loan (PPOR) up as interest only I'd strongly advise you do so. If you anticipate that this property will become an IP in the future, there's no point in paying down the principle. Instead set-up an offset account attached to an interest only loan and deposit your excess funds in there. When it becomes an IP in…[Read more]

Hi AkuhataWelcome to the forum.You'll need to demonstrate a suitable employment history and 5% denuine savings before you can purchase something.For that reason, I'd save like made for the next 6 months and spend the time learning, learning, learning. Catalyst mentioned some good books above.CheersJamie

Hi g0biinThis is been covered heaps in the last few weeks – do a quick search on "offset" and you'll find loads of info.Jamie

Qlds007 wrote:
Jamie who post here is in the ACT and by my geography that is only a good 3 iron away.

Haha, cheers Richard. The way Canberra's rapidly developing up north we'll only be a pitching wedge away from Sydney soon.Jamie

JT7 wrote:
Most important…do your research and have a go.

Agreed. It doesn't matter what strategy you adopt, as long as you have done your research and are clued up, this will help mitigate risks. 

AntheaProperty wrote:
I've never been in a position to need/take advantage of negative gearing. I went for a positive geared property. If you want cash flow go to the mining towns!

No doubt that the yields are greater in mining towns – however, there is a greater element of risk (not saying it's a bad thing though – greater risk, greater…[Read more]

House Call wrote:
update: I amicably phoned the selling agent who was very helpful, appropriately shocked and offered immediately to compensate us for cleaning costs.

That's great news! Sounds like you're dealing with a decent REA.

Agree with the guys above. IO with offset account is the way to go. However, it's important that you remain disciplined and continue to make regular deposits into your offset account (ie. don't just make the minimal interest only repayments).When it does come time to purchase an IP (if this is what you choose to do) it may be best to ac…[Read more]

grimnar wrote:
The point of my 'discussion' though is to clarify that 'making your decision' and 'shoving your personal opinion down someone elses throat like they're a bunch of morons' are two completely different things. Whether you think you are right or not, you don't have to be rude about it.

Well said.

orks wrote:
[Ok maybe that is standard practice, it just seems weird to me that you are using debt as a deposit to secure more debt.

It's called leverage – it's how investors operate.

Or just set it-up as a second IO split on the variable product. If it's set-up as a second facility you'll be able to easliy identify the deductable debt from the non-deductable.

Terryw wrote:
Just get a LOC on one of the existing properties and use this as deposit and borrow the rest from another bank. Best to use none of your cash

Agree with Terry. I'd also be placing that $25k in an offset attached to your PPOR loan.How much is your IP worth? Depending on it's current value I'd be inclined to do the top-up on it and…[Read more]

DWolfe wrote:
Ouch!C-R-E-A-T-I-V-E investing people….If someone is happy to lend based on that then go with it. Good on you Jamie for having a crack, people need to make their own decisions and take responsibility for their own investing.Sigh, I'm too boring to be published LOL!D

Cheers D My investing will be a bit boring for the next few…[Read more]

orks wrote:
What the hell kind of financial institution lets you use a line of credit as a deposit? It concerns me that someone who structures their own finances like that is out there arranging loans for people.

Pretty standard structure really. Take out a LOC or a seperate IO loan against a PPOR to be used as a deposit towards an investment…[Read more]

steve-invest wrote:
Does anybody know where I can find an updated and accurate property cycle indicator or property clock? That would be handy information. Or can anyone send me current property cycle info? Anywhere I can subscribe for this info?

Check out the Herron Todd White Month in Review – http://www.htw.com.au/Month_in_Review/November-201…[Read more]

ING is only 6.96% if borrowing more than $300k.You could give Adelaide Bank a go – your broker might be able to get you 6.94% and their serviceability is pretty good.Choicelend and Homeside (depsite being NAB money) are both still pretty competitive.If you do stick with CBA, it will be worth while forking out the $350 p.a for the MAV package -…[Read more]

god_of_money wrote:
Terryw, congrat for posting >10,000 posts

Wow, that is quite a lot! Always valuable too. Cheers Terry, here's to another 10,000!

Terryw wrote:
Bloody hell! what sort of advice is that???Firstly you will be up for LMI again. It may be aroound 3% of the loan amount. Then you have loan exit fees and govt charges.

Took the words out of my mouth.

Terryw wrote:
Secondly why use cash to purchase an investment property when you have personal debt. You are just throwing money…[Read more]

Hi SurrealistAs a fellow CBA customer, I'm feeling your pain!There's certaintly more competitive offerings to what the big 4 are offering at present.  As Marty touched on, ING are quite good at the moment but it seems that this option has already been ruled out. Adelaide Bank can be good as well (particularly with their serviceability).It's hard…[Read more]