I have just started looking into investing in property as I was advised by my Accountant that this was a good idea because I am on the highest tax bracket. From what I have read, a financial planner may not be the ideal person for this info.
My in laws are returning from living in Qld and need somewhere to live. I would like to buy an investment property for them as they have always been secure, safe tennants so I would not have any problems with the property being vacant.
Can someone please give me some advice on this, I am also interested in the ATO variation. I have a mortgate with approx $50k in equity and no cash at present. Any info would be appreciated as I would like to look for property in the next month or two.
Hi,
Well your off to a good start, you have definately done your due deligence with your soon to be tenants lol. Now you have to decide what strategy you want to implement, and what type of house you want to provide to your in laws. The best way is to see what they are looking for and can afford, at the same time generating a positive cashflow on top of your mortgage if any for yourself.best regards
Andrewgemmagirl
having yr inlaws as tennants is great as long as you are happy with a buy and hold investment. ie if you need to sell quickly they may not be too happy. also clarify early on that you will need to increase the rent every 2 years – or inline with inflation etc etc
in my opinion financial planners are too much work!!! the industry has real problems with regards to vested interests, shonky asdvise and lazy follow up. best to read books and surf the net including forums like this one.
how much are you htinking of spending for this investment property?
Hi
excellant plan doing in depth scrutiny of the tennant lol. [
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But plan for the unexpected. what would it rent for in the area you intend to buy. Vacancy rates etc.
Did the same thing with inlaws bought the house they moved in three weeks later they got transfered. [8]Just a problem waiting for a solution had another tennent before they moved out. []I am looking at spending between 200k – 250k for 10 – 20 acres in South East Victoria. The property will be a long term investment and they will be there for at least 10 years.
I will buy Steve McNight’s book tomorrow. The books I have bought are: Born Free Taxed to Death (have read) – Rory J. O’Rourke, Negative Gearing -Renton and Your Investment Property – Anita Bell. I have read Rich Dad and Cashflow Quadant also. Any other suggestions for books?
go for it???
sounds like you know what you are doing
im invested there also
Thanks for your help so far.
Any suggestions for finance? Are interest only loans the best for this?
Gemmagirl,
IO is best if you still have a PPOR debt. This PPOR should be paid off before you start to reduce any of your IP debt.
Best for tax effectiveness.
As far as best mortgage goes we don’t really know enough about you to advise. There are some great pro packages available and also some good fixed rates atm.
All the best,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985depends on yr cashflow situation and yr propensity for risk.
i always go for p&i cuase im conservative and in no rush. i like having equity.
no right or wrong answer – up to you
It really up to you. I have a p&i loan on my PPOR and an IO loan taken out on the PPOR to finance the 20% of the IP then another IO loan for the other 80% …… i dont believe i am talking like this. By george ive got it. talk to your fiannce provider i went to mortgage house and spoke with the guy for hours and have been back many times he knows my details off by heart for calculations so he is part of my team to build my freedom
fiannce provider ]these guys will sell anything I meant finance provider
Gemmagirl,
Only new to this too..!
Can suggest some books,
“The Richest man in Babylon”… a classic and easy to read.
Anything by Noel Whittaker i.e “Making money made simple” a good general book
Jan Sommers property investing books..
i’m reading “Ordinary Millionaire$” at moment by Jim Mcnight, school of psychology Uni’ West Sydney while i await Steve’s book
basically “read a ton, absorb a lot and use what you feel applies to you” sometimes you can read something ten times.. then one day it ‘clicks’.
Haven’t got Steve’s book yet -but looking forward to it!
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