haha. You are right it's anything but straight forward.

Everyone has the way "they" do it. Don't fall into the trap of trying to listen to everybody. You won't find a property that fits ALL the things. I made that mistake too. Kept passing up properties because so and so said it should be 8% yield and so and so said I should have $50K equity in it. etc. I was looking for properties that had it all. And passed up a few good deals I might add.

Listen to it all then decide what suits YOU. Good luck with it. It can be frustrating but very rewarding to (and not just financially).

Hi, sounds like you are VERY eager to start. Good on you. Wish I wasn't a procrastinator. Took me many years before I bought.

I'm not a fan of LMI but then I've never had an equity problem so maybe things would be different if I was in your position.

But with 95% lends you need to be mindful of property price changes over time. If your LVR is low you can ride out any dips in the market. With a 95% lend banks may want to recall loans if the property drops in price.
 
Also with buying off the plan be aware that "projected" values and rents are just that. Look at values of similar properties that are a few years old in the area. What are they worth? What do they rent for? Remember if you need a 95% lend and the value is 5% under the estimate your up the creek without a paddle unless you have the extra 5% cash. 

Personally seeing as you have the capacity to save quickly. I'd be saving a bit then buying at a lower LVR. Or buying properties that you can value add so bring the LVR down.

Food for thought.

How well do you know the areas where you are buying? Do you know what a good deal looks like? I was surprised at you high first offer for IP1. That would have been exactly what they wanted (middle of the given ranges) so no bargain there. May be better to take your time and buy something that is good value.
I believe in making your money on the way in. Not buying negatively geared properties and "hoping" they go up.

Good luck with it. Keep reading and looking.

If you let them know it's empty you are covered. There may be a small extra charge. That's for building. Contents is different.

If $600 makes the difference between you buying and not buying a property you are in the wrong game.

What about the $7000 stamp duty plus solicitors costs, bank charges. Have you taken these into account?

The increased levies would be worth considering though. Admin funds usually run close to the mark. No use having lots of excess funds sitting around. What about the sinking fund. How much is in that. That's the one that you want a bit of money in.

Jamie M wrote:

. In terms of removing it (and I'm sure this goes against every rule of kitchen removal), rip out the doors and smash the remaining carcus with a sledge hammer – the bench top will probably just come off…..wear goggles. I find it to be a therapeutic experience Cheers Jamie

Haha. That's what I was going to say.

That's what we do. Break it up as much as possible as it packs flatter. Throw it in a skip bin. I wonder how much they charge for ripping it out. Our kitchen mob charges $500 for install. So deduct kitchen price + $500 to see how much extra it's costing.

Victor? He's far from old or tired and I think he has a great soul. Well in my opinion of course.

I have been to a few of their meetings and got inspired enough to buy 5 properties in the last 18 months. Most are CF neutral and increased equity to the point where I am refinancing shortly to pull out equity and buy more.

For $10 a meeting you can't lose really. People pay thousands for networking opportunities. And you meet some lovely people there.

Why not go along and mae up your own mind. At worst you'll be down $10 and 2 hours of your life.

SAVE, save, save. Get a second job.

 How much is that passion (car) worth?  What's it costing you in terms of money and missed opportunities.

If you have a debt attached to it then it is stopping you from moving forward any time soon. Decide what's more important.

Otherwise sit back and wait years for your property to grow and access equity (slow) choice.

You don't pay $25K CGT. That's the amount that is added to your income (minus purchase costs, reno costs etc).

You could always sell and take the year off work (or 6 months to lessen your income for that year).

Really? What yield are you saying is good rental return?

So from this thread I'm gathering that everyone thinks low income =high risk???

I invest in low income areas but I wouldn't class them as any more "risky" than middle income areas.

Jason700 wrote:

to be honest… just wait 7-10 years for the property to double in value and keep renting it out until then   Well those are my thoughts anyway.  Buy and hold (then leverage)

Cheers   Jason

IF you can afford it. 2.5-3% is WAY too low for me to hold on and hope for CG.

That's one hell of a loss EVERY year. You would want to get som,e serious CG to compensate for that. With ibnterest rates of 7% you're losing 4% + rates + insurance + agent fees + + + (EVERY year)