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Thanks JacM I wasn’t aware something like that was even possible! Haha. That’s why I love this place, the continuing education. Same to you Don, your input is greatly appreciated also :)
You guys wouldn’t happen to have any thoughts about the North Lakes area in QLD?
Knox.
Hi JacM, thanks for the reply!
I was advised at the time that it’d be better to out 20% down so it would look better to the banks and for serviceability. I was originally wanting to put a 10% down so as to free up more cash for further purchases. Would I have some sort of instant equity from putting a deposit of that size (77k) down together with the hope that the house is actually valued at more than what I bought it for? (Which I hope is the case). I have another 60k savings also, so I’m looking to either use that or the equity that I hope I have but still try to maintain a cash buffer.
I’ll be all about the 10% deposit for IP #2 :)
Thanks again, Knox.
Thanks Jamie!
Benny and PHP,
Thanks a tonne for the help and info guys, gradually making more sense haha! Legends!
Knox.
Also this might go hand in hand with another question- Does anyone know of a reputable Mortgage Broker in the Adelaide region?
Thanks,
Knox.
Wow Benny! That was pretty good! Haha. Thanks very much for the link to that, although I may need to read over it a few more times to understand it all a bit better :) AND thank you also PHP for getting back to me! The idea of IO+100% offset makes (a bit) more sense to me now.
Am I right in saying that using this method I’m basically freeing up more cash to purchase more IP’s?
I’m a bit of a dummy when it comes to tax.. How does maximizing my tax deductible debt benefit me? (sorry about that one lol)
I understand equity is built up over time as values increase, also with reno’s and paying down the principal etc. If I don’t pay down the principal do I just sit and wait and do reno’s/fix ups on the property when necessary to gain equity? Because using equity is a good way to purchase more IP’s right? Or do people usually pay a bit off of the principal on their own terms?Thanks again guys
Knox.
Well that link to offset accounts led me to read more about them (which has been something I’ve been meaning to learn about). Sounds like a great idea! mmm yeah I think the area is predominantly 3 bedders too and there is no room for extensions to the building as it is adjoined to the one next door. The biggest thing i think it has going for it, is it’s proximity to the city. Anyway I’ll keep on searching and learning, thanks for the feedback Benny, greatly appreciate it!
PS do you know somewhere I could find information in “layman’s terms” on depreciation?
