What stops the bank from trying to recover debts from other properties you have with other banks?CC just makes it easier for the banks but they can still go after other properties.

harvest,One of my portfolios is CC and I haven't had any problems with it.  There are a lot of negative comments about CC and it is mainly based around if something goes wrong the risk of losing all etc.  Lomas comments about the overall equity increasing is correct and can be used to acquire other properties very easily.I'm sure others will p…[Read more]

Risk factors can be a good indication of a persons financial upbringing and maybe the difference between you and your partner.  Always good to find a medium somewhere or compromise.

Scott,The banks are obliged too but it depends on what is offerred on the day of auction.I've seen a few situations were properties have been passed in as they haven't reached reserve but then sold afterwards to offers between what is owed and reserve price.

H,Probably depends on what price they are selling it for.

boshy,One needs to determine ones safety/risk factor to decide how to invest $150K.For some this isn't a lot of money for but for others it could be all they have.For me B&H positive geared is in the low risk category and why I advocate it more than others methods, although it may not bring the best and fastest rewards/gains.

You may be able to change the title to one name (under VIC law for no cost, might be the same in Tas) depending on circumstances put forward to the titles office.  Normally separation or break up of relationship is acceptable but this may have changed.Another issue that may occur is if the loan was taking out in both names with the bank.  A s…[Read more]

Does the other person want all the money or would they be willing to take a percentage plus weekly/monthly payments etc?You could be in a sticky area if this is a defacto relationship and even if everything is in your name they may be able to claim 50%.Also are you looking at borrowing 50% of the total price or 50% of what is owed on the property…[Read more]

$150K could go a good way towards purchasing 3 or 4 properties if you split the deposits up the right way.(1)I'm the old school of buy and hold (B&H) so would look at splitting the deposit to secure a few cash flow properties that would achieve reasonable CG after 10 years.  This might not produce the best Cash On Cash (COC) return but you have…[Read more]

Lets look at Pauls05 situation in another light.If for example Paul owes 30K on a PPOR he could ask the bank for the extra 30K for possible future renovations on the IP he is borrowing for.  If later Paul decides to not do the renovations and use the 30K towards paying off the PPOR then the interest could still be classified as a tax deduction as…[Read more]

I don't know if assumption is the mother of all mistakes but do agree assumptions should be made very carefully.$650/week does seem to be high for the sale price on offer 399K.  Is this a guaranteed rental for a few years?

sydneyme,Good question.  Theoretical on average these areas do go up in prices at relatively the same rate as other areas.This then poses the question are the values of properties in these areas a true indication or have the properties been sold cheaply by the banks to recover their money thus causing prices to be marginally lower than true…[Read more]

If the council won't approve then who pays for the problem to be rectified?

Glenn,Good question but very hard for people to predict what will happen.HB,What are the conditions to the bet?  If you out line some parameters this could be interesting.Will it cover all of Brisbane and all types of properties?Who's valuations will be accepted to judge if prices have gone up or down?  Is it overall property rises or one i…[Read more]

Duck, Elk,Good to get some balanced feed back to the question.A cross property could be neg or pos geared and a neg property could be crossed or on its on.Terry,Just a generalization on neg that's all.Neg geared with exceptional CG is still a good deal.There are a quite a few comments from members not able to find pos CF properties and some of…[Read more]

Elkam,I know what each one is, how they work etc and have no particular situation in mind.Was basically just wondering what people think of both and which one is the lesser of two evils.After reading a few posts lately and seeing how some people had ended up using one or the other, the question was aimed more to provide information for others to…[Read more]

James,The investment plan looks flawed from 2 aspects.  1)  Your current situation; 2) Negative gearing of what appears to be multiple properties at the same time.  It appears that you over extended yourself just a little too much although your idea was good, the timing and application weren't the best.  Breaking even is good and it is easy to und…[Read more]

JL,You shouldn't need to wait for the tribunal in regards to entering the property on the grounds of abandonment and to secure the property.  Just make sure you document when you and how you tried to contact the tenants, reason for entering and securing the property including time frame on the premises.  Make your time on the premises quick but a…[Read more]

The seller should have but can't be held responsible for insurance prior to settlement and as mentioned not all people have insurance and this is why you should check and take out your own insurance for peace of mind.Because your contract is unconditional that could have cause problems for you if the damage was more.  The seller does have a legal…[Read more]