I am on the verge of drawing on the equity of my house to buy my first investment property and I have read a few books on prop investing and had set myself on buying a prop in one of the capital cities. However, I am attracted by a few properties in some country towns (some rental returns are great) but find myself a bit unsure about their future prospects (Im sure you have all read the news articles about the "death of country NSW").
Dont get me wrong, these arent 100 people towns. They have a pop of around 15K-25K people (and experiencing some pop growth), so while they arent sydney they arent that small by country NSW standards, I guess.
Do some of you have any experience investing in rural NSW (or Australia. Not mining towns)? How has it worked out for you so far? Are there any pitfalls ( I know the usual ones, such as varied industries, etc)? Will rural towns really die in the next few decades ( I know not an easy question)?
Warrickel
I wont comment on the fact whether a regional property is a good investment (although personally i think you get good value for money in a lot of the smaller towns) however i would just pull you up on your opening sentence.
I am on the verge of drawing on the equity of my house to buy my first investment property .
Just make sure that you do this correctly as if you redraw the funds on your existing PPOR loan you may find apportioning the interest expense difficult and end up not being able to claim the interest as a tax deduction.
Your mortgage broker should be able to suggest ways to structure and fund the loan without issues and also how to avoid cross collaterlising the 2 loans.
Richard Taylor | Australia's leading private lender
Warrickel
I wont comment on the fact whether a regional property is a good investment (although personally i think you get good value for money in a lot of the smaller towns) however i would just pull you up on your opening sentence.
I am on the verge of drawing on the equity of my house to buy my first investment property .
Just make sure that you do this correctly as if you redraw the funds on your existing PPOR loan you may find apportioning the interest expense difficult and end up not being able to claim the interest as a tax deduction.
Your mortgage broker should be able to suggest ways to structure and fund the loan without issues and also how to avoid cross collaterlising the 2 loans.
Richard Taylor | Australia's leading private lender
Can I ask you when those books were written…
because if not written since October 2008 you are using boom logic in a bust..
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