Hi Forever StudentGo to http://www.888abundance.com and check out the page on the property boardgame.  It's a 'business simulation' of the Australian residential property environment.  It's not monopoly and it's not an easy 'game' to play.  But my view is, if you're serious you would take time to learn the ropes before you invest the big do…[Read more]

Hi DrpinoyI have some contact details for some people who have purchased 'Property Millionaire – the Boardgame' (which is a close simulation of the Australian residential property market) from my website at http://www.888abundance.com or drop me a line at [email protected] with your details and I'll see if I can put you in touch with…[Read more]

Hi TuggerwaughThe idea of going for a cheap positive cashflow property has merit, but would it work in your situation as an additional property?You currently have a mortgage of $730K and property valued at $800K.  It appears this means you are already quite highly geared at the 90% mark.  There doesn't appear to be much capacity to draw on any fu…[Read more]

Hi PaulI think what Terry and Marc are indicating is that you are actually in a v.good position with your own home and only a small mortgage.  Also to trade your asset and current financial position to rent a place and putting the proceeds into a bank or cash type investment seems like a poor alternative.I'm sensing you're quite risk averse and…[Read more]

Hi MikeYou seem to have covered off most of the basics.  You might want to add in 5% of the purchase price in respect of estimated money required for costs.  There are also a few mortgage brokers on this forum who could do a good desktop review for possible mortage capability.In relation to the areas, the US, timing in the market, renos … th…[Read more]

Hi SarahAt $400K value and $355K mortgage, there appears little equity left to draw on unless you refinanced your LVR at above 80%.  This may then attract LMI if you decided to go down this track.Your saving of $340 per month however sounds promising.  Also assuming your tax variation impact returns $450 per month, that would mean your tax r…[Read more]

Hi TuggerwaughYou pose an interesting 'dilemma'.  What I'm going to suggest in respect of maintaining P&I rather than going straight to IO may seem to be counterintuitive to the traditional wisdom?  But bear with me and think this through.  You say you have a mortgage of $730K and property valued at $800K.  It appears this means you are alr…[Read more]

Hi RohanJust a few other things to think about.Tradtionally we might expect a buyer's agent to be 'marketing' properities locally.  However it might be reasonable to assume that the agent's experience could extend beyond their own 'residential' location.  For all we know, they may have very good information and intellegence on that area (or they m…[Read more]

HiBit hard to tell what's possible. The $80K may or may not be 'accessible depending on what you're unit is worth.  If your unit was worth $100K and you have $80K in equity and $20K in debt, that could be good.  If your unit was worth $800K and you had a mortage of $720K and $80K in equity, you're options may be fairly limited.Also do you j…[Read more]

HiThe market has changed quite a lot since I started so I don't know how relevant that would be – except to say, there are always obstacles in every marketplace, and success can sometimes depend on discipline and your ability to problem-solve.Some of the classic issues for first timers are:- the cost of a first property mortgage (at $300K+)…[Read more]

Might depend on where you are in life.If you were at the retirement stage, then owning your place outright does sound very attractive.

Hi RobTo have paid off $80K ($320-240K) in 2.5 years is an amazing achievement.  Well done.  Also your equity position looks very good.  So it might come down to serviceability and a few other things.Borrowing against the equity to buy an owner-occupied home will create debt that is not tax deductible.  Also borrowing $650k more for 1 mort…[Read more]

HiIt's a question that's been asked a lot – might be better if you tell us what you hope to find in a property investment book that will inspire you to take the next step.Or if you ask people what was it they 'read' that got them started.

Hi Mooni75The answer is probably yes depending on whether you can service further mortgages, whether you have any spare 'cash', and what your risk management plan is (being agressive is one thing, having a good well thought out exit strategy is better) .  From what you've described, your LVR is at 77% – so you would probably be in a marginal…[Read more]

HiYou could go to a bank or lender or mortgage broker site online or ring and just get some general info first.  That might give you a basic starting point.  There are also a couple of MBs on this site who would be willing to help.Or, if you want to drop me a line at [email protected] and give me a bit more detailed info on your circs, etc.  Gary

darrenholmes68 wrote:
I'm told i can buy a cheap property in Melbourne with no deposit but can't get a cheap investment property with no deposit.

DarrenI don't understand this part of your comment.  Can you clarify?  Do you mean that you can afford to buy a cheap property with no deposit but there are no cheap properties in your price range in…[Read more]

Display Home – what kind of tenant? Hi DwvJust a few different considerations you might want to think about apart from what has already been said.Is the display home only to be used as display (?) or is there a likelihood that the developer will 'occupy' at some point. There are three issues with the answer to this.If used only for display, they…[Read more]

HiSounds like you have some solid 'assets' behind you.Before going into property investing, work out a simple plan on a page your goals – eg passive income of $xxx per year, choices to work or not, etc.  This should be measurable and outcomes focussed rather than describing a state like "I want to be rich".  Why do you think property investing is…[Read more]

HiAs a 1st timer who wants to build an investment portfolio – 2 questions are: what is your level of real or learned experience (have you purchased before, read books, etc)? and what is your comfort level with risk? The best advice from people still needs to be put into context with your situation.Buying interest only may be good for an…[Read more]

ApanaYou have to think long term implications as well as the short term.The 'risks' you have flagged are quite serious.  You will be liable as the owner. In addition, you may find difficulty in taking out landlord's insurance to cover yourself (until the problem is rectified) particularly as you have now been made aware of the issue (and you ca…[Read more]