With 350k in you PPOR you could borrow 80% to invest giving you 280K for deposits and fees.
So if you find a property for 100k you lend 80% of it 80k get the 20% deposit from the PPOR investment loan of 20k and the fees approax 5k.
So you have 80k on the invesment property and 25k on the PPOR investment loan. 105K loan all tax deductable.
In this example you could get 11 deposits of 25K total 275K.
11 properties at 100k each total of 1.1 million.
11 investment loans at 80k each total 880k loans.
Total loans 1.155 million.
So you have 12 properties in all.
11 x 100k =1.1 million
1 x 350k = 350k
TOTAL = 1.45 Million
Loans of 1.155 million this is almosr a LVR 80%.
If you can get positive geared property you will be WAY ahead.
And yes it very hard to find an 11 sec property but it is great when you find one.
I am in the middle of doing one now. My suggestions would be to get a building and pest inspection done before making an offer. You can then get information about the place from these two sourses as well.
It may cost a few dollars before getting a property but these are well worth it.
Try calling another real estate in the area and get some details about the area from them.
You can use the equity in any way you want. From you information you are looking to borrow against the extra 20%+ that you now have.
Generally you borrow up to 80% LVR of the property you have and the new property you want to buy.
So for example your old proptery is worth 100K you can get a loan (with lenders moragate insurance) of 80K. So the differencce between this amount and loan you have is the equity you could us for a deposit on a new place so that you only have 80% LVR on both the old and the new one.
It all depends on where you look. You need to look outside your own city a lot.
Interest only loans are good but it depends on your own curcumstances on how you want to do your finances. If you go Principal and Interest (P&I) this will get you more equity in the property faster and then you can borrow against this to buy more property.
Have you read any of the positive cashflow books out there? Do so and this will give you more insight.
I suggest you READ every book about positive cashflow/gearing you can get your hands on.
Has anyone read Steve’s stuff? I have not yet.
But there are at least 3 authors for Australia that I have read and they have very good details about the Australian Tax laws, stamp duty for each state etc.
This will give you a good start. I would like to be able to start again. What every you do try to keep away from negative geared property. With a low income it can set you back years as I have found out.
Knowledge is your tool so get as mutch as you can.