All Topics / Help Needed! / Confusion Prevails…

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  • Profile photo of Donna ADonna A
    Member
    @donna-a
    Join Date: 2003
    Post Count: 1
    January 12, 2004 - 1:15 pm

    Ok… where do i begin???

    BEFORE reading Steve’s book I was a typical investor spouting the negative gearing cliches! I invested in my 1st property at the age of 20 (sooo long ago!), and had then purchased 2 more with my brother.

    SINCE reading Steve’s book I now realise how many mistakes i had made [B)] Probably the greatest was selling all the properties just recently! Many reasons for doing this…. but anyway… my current situation is:

    Have purchased IP for $126000, leased at $195/wk. Paid cash (because finance was not through come settlement day!)
    2nd IP settles this Thursday, $107000 +GST, + $10000 max renos, have tennant waiting to move in after reno at $170/wk.
    Did have $155000 finance confirmed, now bank is withholding $20000 of that until renos complete (as it was an ex-hall, never been residence before, they are not prepared to use this as security)…

    NOW…after that long winded blah… please does anybody have some ideas as to how I should be structuring the mortgage for best return?

    How are you finding your positive geared IP’s?
    Any useful sites, other info that has been helpful would be greatly appreciated.
    Also, has anyone used Steve’s “Buyer Beware”, “Fastrack” or “Wealth Guardian”???

    Profile photo of melbearmelbear
    Member
    @melbear
    Join Date: 2003
    Post Count: 2,429
    January 13, 2004 - 12:35 am

    Hi dalderman and welcome to the forum

    I am guessing from the cash purchase that if you have a PPOR (principal place of residence – just in case) that you own it outright?

    As for how you structure the mortgages, it depends what your aim is. If you are not fussed about owning them outright (which you do now anway), then I would go for an Interest Only loan. This will keep your payments lower than P&I, and give you more servicability for further purchases.

    To get more opinions, perhaps outline what you would like to achieve with your portfolio, and how quick you want to grow it etc.

    Cheers
    Mel

    Profile photo of Still in SchoolStill in School
    Member
    @still-in-school
    Join Date: 2003
    Post Count: 1,844
    January 13, 2004 - 2:03 am

    Hi dalderman30193,

    You mentioned ” and had then purchased 2 more with my brother.”

    Are you wanting to setup some type of structure,

    eg, like a trust, since you purchase with your brother?

    Just need more info, to help you.

    Cheers,
    sis

    People 4get that by saving just $3 a day & investing it sensibly
    over a working life, you’ll end up with around $1 million

Viewing 3 posts - 1 through 3 (of 3 total)

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