No worries.

Best to get rid of those credit cards and car debt first.

Then set up an offset against your IP.

Any spare savings can be placed in that.

If you decide to purchase another PPOR in the future – move the funds from your IP offset onto your new PPOR.

Cheers

Jamie

If it sounds to good to be true it often is.

If the property is genuinely worth $600k plus then there's no reason why it would sell for half of its value. I'm sure the REA would have a long list of contacts interested in this property if that was the case.

With auctions – you need to exchange on the day and go through with the purchase. Therefore, you need to be confident that finance won't be an issue so a clean credit history, good serviceability, employment history, etc will go a long way.

Hope that helps.

Jamie

Hi Shiny suit man (nice name)

An offset account is basically a savings account which is linked to your home loan.

Instead of placing money in a normal savings account which will provide you with interest. You place money in your offset and it reduces the interest repayment on your home loan.

In example, if you had a $10 home loan and placed $2 in your offset account, you would only be making interest repayments on $8.

Cheers

Jamie

Hi Wilko

Welcome to the forum.

Is property a good investment? I think you'll receive an overwhelming response of "yes" on a pro property investing website.

Starting off in your early 20's is ideal for property. As you've alluded to – it's a longer term investment so starting out early enables you to potentially enjoy a longer period of capital growth.

As for the actual property you're looking at. It's difficult to comment. You need to look at historical growth figures and identify key drivers that will continue to make this particular area a good investment into the future. Also look at comparable sales within the area, scope out the rental vacancy rates…..the list goes on and on.

Here's some handy websites that will help you with your research – http://www.passgo.com.au/property-data-websites.html

Cheers

Jamie

Hi Mat

I'd be inclined to set it up as interest only with an offset. Instead of paying down the principle – place your spare savings into the offset. This way, if you buy a PPOR in the future, you can move your funds from the offset onto your PPOR – effectively reducing your deductible debt whilst increasing your deductible debt.

I wrote a blog entry on this recently. It's available here

Cheers

Jamie

Sounds great – I'll be there.

Cheers

Jamie

In this recent somersoft thread, PT Bear mentions that he knows of some good ones in Melb. Just shoot him an email/pm for the details – http://somersoft.com/forums/showthread.php?t=77161

Cheers

Jamie

It's a good result. If CBA don't accept the valuation challenge then you can always jump ship to ANZ (providing the costs of doing so are worth it).

Cheers

Jamie

You should be able to get your name placed on the title but you’ll need to suss out whether this will incur any costs such as stamp duty and CGT.

Cheers

Jamie

Hi Luke

How much are you looking to spend?

I know that the eastern burbs of Sydney aren't particularly cheap so you need to get a good idea of what your borrowing capacity is.

If purchased as an investment property, the rent received from the property will help bolster your borrowing capacity.

Cheers

Jamie