Best bet is to get some Val's done. A desktop val (computer generated) may come up substantially higher than expected. 

Which lender won't let you go IO?

Good stats there Richard.

SA will most likely drop in FHB loan numbers as the grants finalise. 

It is interesting, I do see a lot of clients in the 21-29 demographic with large deposits living at home. There appears to be no great urgency to move out, as the resounding opinion is that they are scared to enter the market, as they have been conditioned to believe the sky is about the fall in with prices, coupled with the usual Today Tonight/'parents advice' saying how difficult/impossible it is to purchase a home.

Never forget good ol' Wikipedia, actually has quite a lot of data on towns/cities/councils/suburbs across Australia. Includes population and economic indicators, infrastructure etc.

Hey guys,

There's a meet-up on the 24th June, 6:30pm, Seven Stars Hotel on Angas St.

Here's a link:

http://somersoft.com/forums/showthread.php?t=84714&page=3

Hopefully some of you may be able to make it.

Mmmm 7.8% based on PP. I would assume the granny flat and house are rented as one property.

I would pass on it just because of the size of the town, but that's me.

Understandable why JacM wouldn't release suburb info.

BUT…. Some stats would be good. What sort of yields, avg. price of stock and growth potential are we talking here? Metro or regional?

Nothing but a good opportunity for Jacqui to draw some more clients in.

As Jamie said, its not so much a problem and can be rolled over.

But if a lender won't play ball, there's always another lender who will.

Your buyers advocate and broker aren't a part of the same company by chance?

Hi Ryan,

Going on the basis of your options, a couple of things to consider.

If you SELL, you are subject to the conditions of the market and may find what little equity you do have is eroded if you have to accept a lower offer, and after sale costs (agents fees etc) You will then need to pay a new set of entry costs (stamp duty, legals and other govt charges) to re-enter the property market.

If you RENT OUT your PPoR and rent a cheaper property, this indeed can have taxation benefits and potentially assist your situation. Best situation is to rent a property lower than your current INTEREST obligations. You will also be able to claim the interest on your loan & associated costs of holding the property (council rates, maintenance etc).

If you STAY, you will want to reduce your interest obligations and use paid off earned equity to purchase another property.

In any case it sounds like you're currently paying PI payments (Principle & interest), which may not be the best structure to meet your future goals. Switching to IO and placing the extra funds into an offset account will achieve the same result, whilst giving you flexibility with your future plans and give more taxation benefits should you use your PPoR as an investment property in the future.

Which pathway you choose for the future comes down to your personal preference, however I will say that I don't generally believe that selling the only property you have currently is necessarily the best/fastest way to building an investment property portfolio.

Sit down and nut out what your future goals are and work your way back from there. This should give you a reasonable goal for the next 12-18 months and be able to establish a savings plan which can get you your first investment property. I would most likely take the chance at reval'ing your property too, particularly if you're with ANZ, as you may find that a valuation may come back favourably and allow access to equity from day 1.

Hope this helps,

Corey

As Jamie mentioned, there is a usual Somersoft meet held in the CBD once a month (usually a Monday night). Check out the forums and get the info on specific date/time/location. It's always good to meet up with new people and find out more about their experiences.