Most people start small and renovate whilst they work. But this of course does cut into your lifestyle.

When money is more important than parties you'll know you're ready to begin.

If you are doing it full time and making $40,000 a year you're doing it wrong.
You should be able to make that with one reno and that doesn't take a year.

Most people made some sacrifices to start but then the rewards kick in.
Look at Nathan Birch. At 18 everyone said he was crazy for not partying and buying expensive cars He made his first million at 21. Now at 26 he's a self made millionaire that doesn't need to work.

Priorities!!!!!

I would be speaking to a property savvy accountant BEFORE you do anything.

Personally I think it's too messy. Is your sister going to have enough money to pay her loan repayments + half market rent + ongoing costs?
Speaking of ongoing costs- who will pay them? Rates, water, insurance?
Are you assuming there will be good capital growth? If there is none you and your husband are going backwards.

Do the figures. That will tell you whether it is worthwhile to you. Post the figures here if you want further comments. Eg What is market rent, how much will the purchase be? Don't forget stamp duty, solicitors costs etc. Also keep in mind the first home owners grant. If you buy it with your sister and she lives in it you my void that for yourself. You don't lose it if it's an investment but as your sister will be involved in the contract and will be living there it's a grey area I think.

You need to consider ALL the implications first.
good luck.

I would buy an investment (together if you wish) in an area with high yields and rent it out. Your sister can rent something separately. 

"this" market???

Which one would that be? Or are you assuming ALL of Australia is exactly the same?

The extra payments plus your lack of deposit (after you buy PPOR) will severely restrict you ability to buy an IP.

Yes pay interest only. Put any extra money into the offset account. When you buy a PPOR pay extra into that. Always pay personal debt first as it's not tax deductable.

Do NOT under any circumstances do this. Borrow at 80%. Any extra money you have put it into an offset account against the loan. That will lower your repayments the same as if you paid it into the loan. The difference is it is YOUR money to take out when you wish. If you pay off the loan then pull the money out to buy a PPOR you lose that money in tax deductions because you spent it on personal purchases. If you pull the money out of the offset account you sdtill retain the tax benefits on the whole lot of the loan.

InvestingCoupleACT wrote:

I think IF we were to buy a home first the banks may reject an application for another loan IF we were to apply for one to get this investment property but i think IF we were to get this investment property first our chances for a loan for a home where we reside in would be better??  meaning the outcome of this scenario would be that we have an investment property where we pay next to nothing or literally nothing in home loan repayments and then just pay off our home loan??
Rookies

The bank looks at your expenditure VS your outgoings. Rent is calculated at 75-80%. Having the IP would not increase your chances of a PPOR loan. Not while it's negatively geared anyway.

Do you have some figures for both?
Cash flow IS king but without Cg you won't go anywhere in a hurry.

How much CF are you talking? I like cash flow too but wouldn't buy in a town where I don't think there will be CG.

It's ALL about numbers. You are right with the 4 rentals VS one risk. I like brick too. Less upkeep (normally).  Just be careful with towns that have lots of rentals. If places are empty they quickly burn up any CF especially if there is no CG to make up the difference.

So this is your place and you'll be moving into your partners place? is that correct? Or are you and your partner moving out and you both own it?

If the first is the case you can rent out your unit for 6 years and not pay CGT (as long as you don't claim another place as your PPOR (Principal place of residence). Important if you sell later. Move back in within 6 years (even if only for a few months) before selling. Otherwise you pay CGT on all the CG.

Check realestate.com and find out what the rents arte. Speak to a few agents. Get a rental appraisal. While they are there ask for any suggestions that will make the place easier to rent or to increase the rent (paint etc).

There are PLENTY of places that will take your money to mentor you.

There are MANY ways to make money in property (as you are discovering). You need to decide which strategy YOU wish to use first.

THEN spend all your time researching THAT strategy. You can't do them all effectively.

Personally I think you need a basic understanding of simple buy and hold before launching into other areas. Wraps, lease to own etc can be tricky legally. So you DO need some handholding with those.

Why do you need to use "creative" ways? What's the matter with "normal" ways?

I don't mind painting either. I have painted 3 full houses in the last year. It's the fiddly bits I hate and if surfaces are poor.

 Blooming lacquered skirtings and window frames are a pain to prepare and paint.

I love doing doors.

But I do hate ceilings (especially nicotine stained ones).

If you live there it is your PPOR. If you have boarders it's up to you (legally you should declare it). So it's not really rent as in you wouldn't have a rental agreement, but maybe a shared housing agreement.

Well lot's don't. There have been a lot of cases investigated. Some live there for the 6 months. Some that just buy and don't live there and wait for the 6 months to be up have been caught because there is a VERY low electricity bill. Be careful.
I guess some get away with it though.

Nathan's Deal finder is not a search tool. It's a buyers agent setup. You pay for it and have access to Nathan's deals.
I like the Real Estate Investor program but have not paid for it. It does make it easier to search for what you want. Rather than by suburb.

In reality that's what real Estate and Domain should do.