Hi everyone,

Hi Mim,

Probably best to just redraw the money you've got as it's much easier. You would still have to pay interest on the money you take out of your redraw so it doesn't make much difference if you do that or refinance. Except that refinancing you'll have to pay anything up to $700 for the privilege! I recently inquired into refinancing for some basic repairs but it's not worth it when you have to shell out for those fees, particularly when you are starting out and trying to put all your savings into acquiring properties.

Re a problem I have:

I've just found what I think is a really good deal in a strongly growing regional town in NSW, however after taking all costs into account I would only get about a 5 or 6% cash on cash return on my initial cash down, using the method in Steve's book (0-130 properties in 3.5 years). My cashflow would equate to about $16 per week which is cashflow positive but if interest rates go up as I'm sure they will (especially with all of our Commonwealth debt), this will wipe out my cashflow and put me back into negative gearing territory.
I have already gone down that road with a couple of properties (both of which I plan to sell) and I don't want to go there again!

Anyone have any suggestions?  

Thanks
Aaron