Ok, I guess we'll just focus on paying down the loan a bit more for the time being and maybe prices will come down and we can jump in again

My second question would be, which areas of Aus can I find a + cashflow IP ?

I've heard the UK market is starting to recover, should we be looking overseas instead?

current lender is bankwest.

property cost $290k and we put down a $40k deposit

Thanks for the help Jamie.

So loans 1 and 2 are from the same bank right? Or can loan 2 be from a different bank? Must they send a property value assessor to the residence first to obtain the current value?

"Second loan split for the equity release" ? I don't know what that means?

When you say, "deductible", you mean tax-deductible right?

So…[Read more]

Current loan amount is about $250k and apartment is valued at $290k (also purchase price)
Purchased it last month.

Just want a guide as to how to go about getting the next investment property started. Our income is going up to $200k/year at the end of this year.

So where would you say is a good place to invest in Melbourne? The outer suburbs?

I still think anywhere in the west is a good buy, no?

Also, although these companies may move out from the CBD, the cbd will always be there and being close to it will surely always be better than being further away no?

is LMI an annual thing or just a once off payment?

the annual body corporate is like $700 and rates are like $300 I think.

For some reason I just can't see this property growing another 2 times in value over the next decade but who knows what could happen.

I heard Melbourne's population is set to outgrow Sydney's and reach 6 million by 2037. I…[Read more]

IT has been painted and new stove and aircon/heater installed. It also has a separate toilet to the bathroom.

Yes it can be improved, the spacious lounge could be turned into a 3rd bedroom with the addition of a wall making a hall way entrance with kitchen on left and bedroom on right. Kitchen could become living room to eat meals in as its quite…[Read more]

Sorry but where did you get the $10k per year figure?

if it was tenanted at $270 a week, thats 52 x 270 = $14,040 a year
repayments = $18k a year

So isn't that  negatively geared by approximately $4k for the year?

I really do think it will grow at least $4k a year, considering that the same distance from the cbd on the east and north side of…[Read more]

@TheFinanceShop

Thanks for the response.

When you say heavily negatively geared, you mean the rental payments do not cover the mortgage right?

It will be owner occupied for the first year (it has to be since we took the first homebuyers grant) but then we may rent it out and move out. There is the opportunity to convert it into a 3 bedroom…[Read more]