mrbean wrote:
Cat,why would you do it yourself when someone else, Suncorp, is prepared to pay?

This – we only have a finite amount of time to use. Why do something when someone else is available to do the job. Use your time for some other personal gain. 

ANZ Bank Property Report (April & May 2010) has some research and interesting comments on the notion of affordability.Part 1Part 2An interesting read.

Reading between the lines here and it seems as if the maggots are 'self-inflicted' Onus is on tenants to keep place tidy. You report the carpet as being soiled and the place is unkempt. What sort of checks did your property manager do before giving your investment to these people to live in?

skips80 wrote:
It seems that the banks wont let me access the equity without the parents being involved in the finance at the very least as guarantors. I'm thinking it would be good to get out on my own with the ownership but this will set back any plans for a new purchase  Joel

Hi Joel,Ongoing finance and refinance can be an issue when…[Read more]

Hi Michael,Might be a bit like penguins with the penguins being banks & investors with them both waiting for the other to consider these types of property to be 'norm' and thus looking at them with a more open mind. I suspect banks and investors see risks in these types of properties which they don't see in something more 'normal'…

Notwithstanding a couple of brokers were able to secure finance for this property this thread highlights the need for 'readily available & affordable finance' as a key component of any property research. I wonder how many potential buyers would throw their hands in the air and walk away from this property purely because finance was too…[Read more]

Cattaby wrote:
But maybe because I'm new to the property investing thing, I'm still not seeing the major benefit in switching to an Interest Only account, even with your explanation above. Surely if I paid extra into my home loan, I could redraw that amount later, and save on interest at the same time? Is the benefit for tax purposes? Please…[Read more]

Hi Aaron,Reading your post it would appear as if all the ducks are pretty much lined up and all you need to do is take some action. A couple of comments that may be of use to you. Your employment status MAY create some issues but I am sure a good broker can work within your employment constraints.Available deposit means your borrowing capacity…[Read more]

As stated above the number of these properties that make good overall investments have diminished over the years but they are out there.The key issue for me is the property still needs to be fundamentally solid – even Steve mentioned this in his first book. While getting cashflow suits a cashflow investor six years ago (or so) there were herds of…[Read more]

This is one reason I tend to steer away from specialised property such as student accommodation.While I do appreciate they can be nice little cashflow earners consider the difficulties you have had getting finance – the same issues will probably apply to any buyers in the future should you elect to sell the property.  Finance difficulties can…[Read more]

I made comments about an offset account to a similar question in another thread. Pasted below FYI"At this stage and while you work out what you want to do with this property long term I would suggest placing the equivalent of your principle repayment into an offset account linked to the loan. For example if your interest bill is $800/month and…[Read more]

A few things to be done.Find a decent property managerTake good photos of everything in the place before tenant moves in. Can be used as proof later on if things go awry.Take out landlords insurance.See if you can convert loan to I/O but keep making addiitonal payments into offset account to reduce monthkly interest bill.Advise Office of State…[Read more]

Just adding to Luke's suggestion – at this stage and while you work out what you want to do with this property long term I would suggest placing the equivalent of your principle repayment into an offset account linked to the loan. For example if your interest bill is $800/month and you are currently paying $1000/month then place the difference…[Read more]

Scot wrote:
Wow ! Not being one akin to debt, I will be paying off the loan as quickly as possible for the IP.Scot.

Before committing yourself to a certain path you may wish to do some maths to see what the difference between I/O and P & I is. Even on a $400K loan it can be quite sizeable – the difference could be used towards a second IP in…[Read more]

Depends on what stage of the settlement process you were up to. Best advice is to ring your conveyancer/solicitor and get them to advise you. They have seen the contract and are legally qualified to tell you what your options/obligations are.

1 Starting out wrote:
Hi charlieb11As Joanne won't answer how has you time with ABC been going. I too have been approached by ABC recently. They told me that they got my name from my bank. Any one else heard of your bank passing on you name to these type of businesses.

Name from a bank – This would be extremely unusual so I don't think this is…[Read more]

Hi Jamie,I always use a 'gunfight' analogy here.If at all possible when in a 'gunfight' keep a bullet in the breech – just in case someone else pops their head in.Using as little of my funds as I possible can is akin to a gunfight. Keep something up the sleeve for just in case scenarios and if this means paying LMI and retaining more readily…[Read more]

Hi Pauln,Peter Spann has recommended people consider the 'sell investments to pay off home' approach – at the end of the day it is up to the individuals to determine what suits them and their situation. If this is something you want to do I would suggest it only be done if the sale makes real & significant inroads into your PPOR debt. If it only…[Read more]

Scot wrote:
I do not have an exit strategy…….as yet anyway.I am hoping that with the property investments, I would not have to worry about where the money would come from.That is when I want to stop working.I could pass on the properties to my children when I am gone.I prefer to pay off the mortgage as quickly as possible.So with investment…[Read more]

Scot wrote:
gipsI am in a very similar situation as you.Just started looking at property investment, and not finding it that straight forward and easy.My situation.PPOR fully paid up. Est 1M.Running own biz, paying myself $70K, Wife $35K.Biz is not fantastic but churns out profit abt 120k per year after all expenses.The biz will be the cash…[Read more]