[jwareham1985Participant@jwareham1985Join Date: 2013Post Count: 13]

May 30, 2014 - 9:51 am

Thanks Jamie M and BigVman.

Jamie thanks for clearing the equity part up for me. I currently have 40k, next month I will have 50k, the month after I will have 60k. My salary for the next year and a bit at least will be just over 200k but it won’t be that forever unfortunately, so my goal is to try and get a head start while I can and then once I decide to leave this job at the end of next year so I can be home with my new family I want to be able to have at least 2 property’s, 1 of them at least being an IP and the big thing is making sure they are serviceable when I drop back down to around the 100k a year salary.

I’m just a bit confused on taking the next step to secure another property, where should I buy, what should I buy, how much do I spend, should I touch the money in my current offset to use for a deposit or leave it and start saving from scratch again for another deposit. It’s a tad dawnting for a newbie and I feel as I did when I had my first boy a few weeks ago, the similarity’s are that both my newborn son and how I go about purchasing a second property don’t come with a manual ;)

[jwareham1985Participant@jwareham1985Join Date: 2013Post Count: 13]

January 3, 2014 - 7:10 am

Hari17 Did you find an accountant or contact house of wealth at all??

Cheers

[jwareham1985Participant@jwareham1985Join Date: 2013Post Count: 13]

January 2, 2014 - 11:57 am

Loving the information guys, keep it coming.

Shahin you suggested earlier that I should sit down with someone to have a more in depth chat to about this, Is there anyone that you guys can suggest me to sit down and have a more in depth chat to that's based in Melbourne? Preferably for a cheap fee rather than too expensive?

[jwareham1985Participant@jwareham1985Join Date: 2013Post Count: 13]

January 2, 2014 - 5:28 am

Thanks Benny,

Yes growing my RE portfolio is my main goal and dream. I didn't actually know the banks would lend you that much, i have always been under the impression that you would need at least a 10% deposit as a minimum. Will all major banks lend up to 100% of the property? and is there a certain criteria that needs to be met in order to lend up to and over 100% or the total value of the property?

I have a feeling the next property will be my PPOR for the next few years at least being we have our first baby on the way, property #3 onwards will more than likely be IP's

[jwareham1985Participant@jwareham1985Join Date: 2013Post Count: 13]

January 2, 2014 - 4:45 am

No its not new, its 5yrs old. We brought it just after the FHOG finished and changed to a new home/apartment owners grant, so we got a 40% reduction in stamp duty instead which actually benefited us as the FHOG was only 7k and the 40% duty reduction saved us about 11k.

Also does this mean when i go to purchase my next property ill not only need to save up for the 10% deposit, but ill also have to save up to pay the full stamp duty amount?

[jwareham1985Participant@jwareham1985Join Date: 2013Post Count: 13]

January 2, 2014 - 4:08 am

Sorry i meant first 12 months?

[jwareham1985Participant@jwareham1985Join Date: 2013Post Count: 13]

January 2, 2014 - 3:59 am

My current home loan is with the NAB with an offset account attached to it. I had 20k in it last week but thought it would have been a good idea to dump 10k of it onto the mortgage. Probably wasn't the best thing to do now ive spoken about this a bit more.

Scott, dont i have to live in my current PPOR for the first 6 months before i rent it out since it is my first i have brought?

[jwareham1985Participant@jwareham1985Join Date: 2013Post Count: 13]

January 1, 2014 - 3:41 pm

Thanks for your help guys, I really appreciate it, sorry about the thousand questions. I'll make sure I call my bank tomorrow and organise it.

Cheers,

John

[jwareham1985Participant@jwareham1985Join Date: 2013Post Count: 13]

January 1, 2014 - 12:21 pm

Yes i am going to turn the property into an IP this year at some stage once i figure out my next move, where to buy, how much deposit i will need to save up, how much to put aside for the dreaded stamp duty, LMI etc.

So if i change my loan to an IO once the time comes, and after say 5 years i decide that i would like to continue to keep the IP, would i then have to pay a lump sum of the principal amount i haven't paid for the time it's been IO? and would i then have to re-apply change to an IO again?

[jwareham1985Participant@jwareham1985Join Date: 2013Post Count: 13]

January 1, 2014 - 11:38 am

Ok I understand that now, thanks for taking the time to explain that.

But one question i have in regards to converting the IP to an interest only loan, besides using that option for negative gearing purposes, if i am wanting to hold onto this property for longer than 5-10 years wouldn't an interest only loan only benefit me if i am wanting to flip the property after the initial 5-10yr interest only period finishes instead of keeping it? Or would you not recommend holding onto the property for that long?

[jwareham1985Participant@jwareham1985Join Date: 2013Post Count: 13]

January 1, 2014 - 11:03 am

Thanks for your reply Shahin,

Im still pretty naive with the whole interest only thing and dont really understand why i would keep the principle of the loan as high as possible. Obviously being so new to the whole real estate game i have a long way to go, but i really appreciate your feedback.

If you care to elaborate a bit more on the topic then please do, but feel like you have to, im sure if i research hard enough the information will sink in a bit more.

Cheers