I think it all depends on your goals. If you want to take a holiday in a few years then terry’s example makes perfect sense. If you want to purchase another IP then paying off some of the principle can’t be a bad thing because then you will have equity to purchase your next property. Whether it’s cash or equity is amounts to the same thing.…[Read more]

Further to the comments from Bridge bluff.

My understanding is that whenever LVR is > 80% (the most likely scenario for default) mortgage insurance is necessary. If a property is purchased for $200k, the loan would be more than $160k. If, after a short period of time a mortgagee sale occurs and the sale price is < $160k + cost then the FI gets…[Read more]

Hi David,

My wife and I sound similar to yourselves, we built a house in Sheidow Park in 2004 when we were both 24. Lucky for us we’d bought the land 2 years earlier and it had increased in value nicely by the time we moved in. We also now own an IP in Elizabeth, not the best area but we’ve got good tenants and are in the process of sub…[Read more]

The lower rent / better tenant theory is definitely something to think about. If you are trying to get more rent or be picky with your tenants you risk losing money in the long term.

Say you advertise at $200 but market rents in the area are $190. If it takes you 10 weeks to get a tenant because all the good ones go for the $190 a week place,…[Read more]

Hi All,

Did anyone see the news story earlier this week about the Aussie investor who got seriously burnt in buffalo? He bought a property off eBay, sight unseen, for $11k (or there abouts) which is amazing. Even more amazing (or not as the case may be) it turned out to be in the worst house in one of the worst streets in buffalo and was an…[Read more]

Hi Didi, tough break with the defaults. I would say that all is not lost but your ex has certainly limited your options in the short term. If you are looking at real estate borrowings and have sufficient deposit then I think most lenders would at least have a look provided the defaults are paid, especially if you explain the situation and can…[Read more]

Hi Dave,

it’s not easy starting out but you’re young and eager so there is lots of hope for you. I’m suprised you haven’t been able to find any ads where they quote the sale price and rental amount. 5113 (postcode) is an area north of Adelaide that has a very high percentage of rental properties (opposed to owner occupiers).

It’s not the best…[Read more]

I’m glad others found the errors and the courage to ask if the “guru” could be wrong. I agree with the errors found by Gazman and would like to point out something i found in the third solution. the sale proceeds seem to have the sale cost taken out already and the rent has not been calculated at 92% occupancy like the other.

I worked out the…[Read more]

Hi Andy,

with my FI I don’t have to change products if I want to fix the rate, they just do it. The only time it costs is if more money is required (or you want to from fixed back to variable).

I would think you could get a 3 yr fixed rate (my lender’s is 6.65% at the moment) very close to the variable you are on now so the comparison rate…[Read more]

Hi tamtam,

only owning one ip myself (so far) I’m not sure if I’m qualified to answer this but I would suggest that when you come to own 130 ip’s it is not only passive income you are receiving. In one of Steve’s theories/diagrams he discusses using profit to purchase other income producing assets (be that shares, property or other). Steve also…[Read more]

Hi MM,

I asked that very question on another thread, seems I’m not the only impatient one!

A few people said to expect it on Thursday, but as they say – patience is a virtue.

Cheers
Mike

Originally posted by Terryw:

Also, probably best to get loans in one name only. ie not with a partner. This will allow you to go further eventually.

Terry, when you say partner, do you mean a business partner or Wife/Husband. My wife and I have 1 IP and our PPOR and are looking around for another IP at the mo. I don’t think I could get a…[Read more]

Originally posted by Barbara:
Could someone please tell me what the Virtual Kick Start is?[blink]

Hi Barbara,

you may have missed the boat on the Virtual Kickstart program (possibly one the admin guys can confirm) but it’s a series of emails with resources provide by Steve. Mainly downloading info of DVD’s of Steve presenting his advice, very…[Read more]

Thanks Derek, now I understand![blush2]

Hey Ronald,

a little off the map (my wife’s in Sydney thu work so I have to fill the time!), but my parents live in Agnes Water. Things have just gone crazy there over the last 3 or so years (maybe longer), they run a resort (www.edgeonbeaches1770.com.au if anyone is interested) but bought a block of land in late 2002 which more than doubled in…[Read more]

mleith,

I’m unsure what you’re saying………are you a buyers agent looking for potential clients? Or warning against people “trawling” the forums for clients?

Mike

Hi Matt,

After reading Steve’s books (if you have) I’m not sure how you could be in favour of a negatively geared buy and hold strategy, although we are not here to cast aspersions.

I would tend to agree with the first two post in regards to increasing your equity (or profit) in some way, although Julie makes a good point about using both of…[Read more]

Personally I have only fully read Steve’s book, and glanced at a few other so I think this is a great thread. Well Done SWEET!

It’s all so useful and motivates me to go to the library. As I read Michael’s post (no offence Michael) I was thinking “Yeah, whatever” but then, what do you know, two other posts come on about his book and how good it…[Read more]

Speaking of Steve, I completed and returned the templates last week but am yet to receive another installment. I have in the mean time changed my email so can anyone advise if they have received further communication (other than the reno DVD which I did get)? If others have received further emails then I’ll have to get onto the…[Read more]

Righton,

where you start would have to depend on you goals. It’s pretty hard to find a residential property where the rent covers all your expense (depending on the LVR) but when you go out north you can come pretty close. The down side is that there isn’t much capital growth.

When you look at areas like Davoren Park, Elizabeth Downs, etc what…[Read more]