Rudra,

Yea Dazza the numbers above work for new purchases not refinancing.

For your situation Rudra I think it comes down to your confidence in the property market, if you want to leverage up then pay the LMI and potentially buy multiple properties. Also consider your serivcability of the loans, as they are not positively geared.

Personally I…[Read more]

Hey Rudra,

Here are some comparisons between a 95% LVR and 80% LVR, based on the following assumptions:

– Purchase Price $230,000
– Loan of 6.8%, interest only, over 30 years
– Rental Return $320 pw (assume 1 week of vacancy per year)
– In Victoria
– Purchase costs include loan application fee, stamp duty, LMI, building/pest inspection, legal…[Read more]

Making extra repayments on your mortgage will give you a return equal to your interest rate (rate charged by lender e.g. 7%).

If you are buying an investment property with the aim of it being cash-flow positive, work out the total purchase costs and ongoing expenses, use these costs along with market rent for that property to work out if your…[Read more]

If you can’t show the bank you have evidence of “genuine savings’ (your bank account going up each month) they may find it hard to lend you money as they fear you won’t be able to service the loan.

I would suggest paying off the credit card asap, then buying an investment property afterward.

If you are likely to pay off your credit card debt in…[Read more]

One of the big challenges for most people is saving up the required deposit/purchase costs for each property.

Say you were buying a $300,000 in QLD on a 5% deposit. It would cost you approx. $33,000 (inc, government costs, lender costs and building & pest inspections). Work out how much you can save per year to get a rough estimate of how many…[Read more]