I’d be pretty hesitant to employ a strategy of drawing down equity to fund my retirement. I’d like to think that at the end of the day I could live with a comparible lifestyle to my current one, and be able to leave a generous nest egg for my kids.

As far as I am aware at least one of them needs to be an Australian resident before they can receive the FHOG.

Before I go into what I have done so far, I’ll give you an idea of my finances before reading Steve’s books.

Paye wage earner $55,000 year
wife paye $35,000 year

$5000 credit card 1
$3000 personal loan
$2500 AGC Creditline (27% interest!)

Spent $110 per month on internet
Spent $120 per month on phone
Spent $50 per month on mobile phone…[Read more]

DOE… next time I’ll do my subtracting correctly!

I guess it all depends on the amount of risk you are prepared to take on board.

A good method of accessing this equity would be to refinance with your nominated loan provider. Generally you’ll only be able to refinance up to 80% of the current value of the property. EG:-
.8 x 320,000=
256,000 (refinance available)

Current loan $230,000 gives you $16,000 available for use. You will need to subtract bank/lender fees from this…[Read more]

Think “Low Doc” loan.

Heheh… Resistance is FUTILE!!

Im just a bit worried about the lower potential growth. I guess you cant have high rental yields and high cap gains as well.

My suggestions for services would be:-

1) Basic internet access
2) Free email accounts
3) Provide LAN/internet gaming to groups and individuals
4) Basic vending machine food/drinks kind of stuff
5) Wireless connectivity for those who have their own laptop computers.

Etc

Borg.

Thanks. I imagine that I could use the remainder of the 5% to offset my PPOR home loan.

From the sounds of it you Mum is under the impression that with an interest only IP loan her overall cash flow is positive. This is then placed back into her PPOR to pay it off sooner along with the regular mortgage repayments.

If a property is Cash flow negative or Negatively geared by the very definition it is earning less than it is producing…[Read more]

I will be getting a pest inspection and building inspection done definately. There are some minor repairs needed, but I can pretty much do them myself next time Im down in the area. I’m trying to negotiate for early access to the 2 properties so I can make the repairs/value add before the titles pass hands and I can get a tennant in the second $65k unit.

Hi Joanne,

First thing; I suggest you get Steve’s second book, as it contains a lot of good insights into the current property market. You probably wont find many properties that meet the 11 second test in the Brisbane area straight off the cuff, especially if you are looking solely on realestate.com.au. You need to get out and see some real…[Read more]

I’m no expert, but if it was me this is what I’d do.

A) Keep the property. As it stands you are reasonably close to breaking even already.

Look for ideas to value add cheaply to increase your potential rent.
– Get some cheap furniture and advertise as a furnished dwelling
– Negotiate with the tennants see if there is anything that you can do to…[Read more]