Hi Bridgebuff,

You suppose right. Three properties are cf- and one is cf+. As a matter of interest it is a commercial property, while the cf- properties are all residential.

Up till recently I have adopted the buy, hold and hope approach, but I am beginning to change my views. If I do a small sub-division ie split one block into two and then sell both I don’t need to sell my house to finance this. I have an LOC ($200k) which I can use to finance deposit and costs. I guess I see that sort of activity as trading rather than investing and at the risk of being howled down, it is not exactly my idea of a cf+ investment. If I want to trade I can do it in the stockmarket where the costs are much lower. To re-state, I am not against the sub-divison idea and one of my properties is already on two titles and will generate a handy profit by demolishing the house and selling the two blocks.

To answer ftareen’s query, you probably have do what Bridgebuff suggests and use the LOC for deposit and obtain a Lo Doc loan from another lender for the balance. Make sure you check on the lenders Lo Doc requirements, because some will require you to have an ABN for at least a year or so. Others require that your primary source of income be from self-employment (not PAYG). If on the other hand you can satisfy lender servicing requirements from your existing income then stay with your primary lender.

What I didn’t say in my original post is that I would like to semi-retire, so proceeds from selling my house can reduce debt and cut down the need to generate income from working.

Happy New Year
Argo