Hi guys
I posted something similar a couple of months ago on this subject.
Last week, API magazine asked me to write about LMI for their weekly newsletter. It's a condensed summary about how investors can use LMI to build their portfolio. The article is available here
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks Jamie.
The second option is great, as long as CG is enough to cover the interest on 600k plus LMI and fees.
Also, where are these people buying for 200k for a house? I wouldnt think theyd be buying in an area where CG will be good and at least sheltered a little from a downturn.
This isnt 2001 anymore……
What do you think?
Hi guys,
yes I agree with you Paullie, if you are using LMI as a leveraging tool then it must be for a property with good CG prospects but to add to what Paullie said or positive cashflow, and ive made cash doing both on 90-95% lends plus LMIeg I purchased an IP 3 years ago (GFC days) inner-ciity sydney brought 95% plus LMI 325K sold last week 455K = 130K CG this property was Neg geared to the tune of 5K per annum, but as you can see the growth more than made up for it
Another deal I cut 3 months ago I brought house (ex housing commission) in outter suburbs if hobart (some call it rough area) brought 125K 90% lend plus LMI
now, I excepted the fact that there would be little no growth in the short to medium term but it rents 250pw (no reno came with tenant) 10.4% rental yield so it more than covers all its out goings and generates a small income,
in summary I think if you can mitigate the risks as i did in the above examples then yes LMI can be an investors best friendPaullie wrote:Thanks Jamie.The second option is great, as long as CG is enough to cover the interest on 600k plus LMI and fees.
Also, where are these people buying for 200k for a house? I wouldnt think theyd be buying in an area where CG will be good and at least sheltered a little from a downturn.
This isnt 2001 anymore……
What do you think?
Hi Paullie
No worries.
The $200k figure was mostly for illustrative purposes.
However, a few places that come to mind are Queanbeyan, NSW – 1 and 2 bedroom units can be found around this price. The yields are quite good and the CG has been decent. Hopefully it will continue.
Some other places with $200k properties are North Adelaide, Logan, QLD, most large regional hubs in NSW and parts of West Sydney. All aren't going to be on par with one another but if you looked carefully I'm sure you'd find some decent spots with good growth prospects and rental yields.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
thanks Jamie.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
