I think having so many new properties available to purchase will keep the prices of yours down, therefore CG will be limited as the market will be flooded. What’s the proximity like to amenities such as train stations, supermarkets, schools etc?

On the upside of purchasing a new property is the depreciation benefits but on face value without…[Read more]

I will preposition this by the fact that I’m not overly familiar with the Perth market but I would be very wary of OTP purchases as a lot can go wrong and not a lot can go right. From what I have read Perth is nearing the peak of the market, which in the instance of OTP not good as your end valuation will come in lower than your contract price.…[Read more]

Why Perth? What is drawing you to Perth?

I’m assuming because you’re looking at OTP that you are a non resident so restricted in what you can buy otherwise established may be a better way to go rather than OTP.

Have a look at the demographics of the areas you’re thinking of buying as different demographics will have different needs so don’t buy…[Read more]

Which one is the better investment? What’s the CG prospects looking like for the Brisbane property?

Some major tax implications and considerations I see here including CGT – PPoR (?), capitalising interest and getting rid of non-deductible debt to pay down deductible debt.

If you live at your parents’ place would the rent from the Melbourne…[Read more]

Long story short… after growing up on the far north coast of NSW with my family, my husband and I agreed that we would follow them to Melbourne with the intent to stay for only 2 years. It never felt like home and as soon as I arrived I was already planning my exit as I was never totally happy there. Melbourne was great to us career and property…[Read more]

Are you speaking to an actual mortgage broker or a banker at a particular bank’s branch?

If you’re speaking to a broker I see no reason why you would engage more than one for the reason you’re stating. A broker should have access to a wide panel of lenders to chose from and not just one particular bank. So then they would be able to give a more…[Read more]

Nice work, looks good.

No worries – don’t feel silly!

You’re correct in what you say about how the equity works – you are increasing your debt.

The trick is to find the right balance – as you purchase new properties you will be renting them out – that rent is then income which in turn increases your serviceability but you want the capital growth too. As you’ve…[Read more]

Woah hang on…. cash in an offset account? Avoid that like the plague. Set up the $740k as a Line of Credit an draw upon as needed. Gets messy with tax otherwise – seek tax advice on this one.

Sounds like you have a good plan in place – nice work.

*edit* Just re-read your post and by the looks of it, it seems to be a LOC that they have set up…[Read more]

For me it’s photography, cooking, 4WD-ing, fishing, kayaking, hiking and just generally getting lost in nature. And sometimes all at the one time! :D

To help combat the servicability issue you need to structure your loans correctly from the start which means if you’re looking at buying quite a few properties go to the less generous lenders first (not nab) and then once things start getting tight you then start to go to the lenders with more generous servicability ratios.

What’s your strategy…[Read more]

Also, forgot to add – you should turn your loans to IO – do you currently have an offset account against your PPoR that the $80k is sitting in? As much as possible you should use OPM (other people’s money ie the banks) to fund investment purchases for a few reasons, one including maximising your tax deductibility.

Hi Sonya,

You’re pretty much correct in your understanding of equity and how to access it. The most common way is to access it via a Line Of Credit (LOC) which is a separate loan. Using your PPoR as an example if you draw on equity up to 80% of the loan value (you could do higher but you would be entering LMI territory) you would have a LOC of…[Read more]

I don’t know the Townsville market as well as I know the Cairns market but in general I think north queensland is recovering and people are starting to notice. Will be interesting to watch during the next couple of years.

What I’m really waiting on is to see whether the Aquis development in Cairns will be going ahead or not. And if I were a…[Read more]

Is the property vacant? Are you a first home buyer claiming the grant?

Don’t be embarrassed – we were all there at one stage. You’re doing the right thing by educating yourself and finding the right professionals to help you move forward!

I remember one of my first posts on an investing forum a loooong time ago is what is an Interest Only loan! Glad I’ve a lot since then!

As Marty stated – all brokers should be happy to have a preliminary chat so you can get a feel for them. You don’t want to go with someone you don’t trust of doesn’t give you the right gut feeling. You want to make sure they know their stuff too. That’s all part and parcel of the service.

When brokers may get ‘pissed’ is if they after spending a…[Read more]

If my understanding is correct, there is no equity as I haven’t paid any principal.

I just wanted to highlight the above that you stated, Appg. Just paying the principal isn’t the only way you can create equity. There is also capital growth which creates equity – either manufactured through renovations or through ‘natural’ CG which is the m…[Read more]

When you lost your business and had health issues did you keep up to date on your financial commitments or did you credit history take a hit? That’s one thing I would want to know first as depending on the outcome it would depend on the course of action.

Not sure what sort of input you’re wanting from the professionals? Are you wanting people to…[Read more]

Looks like you’re in a good position there Hot Stuff and you goals seem very achievable. When you say ‘cash in bank’ is that in an offset account or available as redraw? Depending on which would have different tax implications.

One thing to consider is holding costs when you drop down to one income when you start a family so this should factor…[Read more]