Hi Smidy,

Further to Jac's comment – why not continuing to use your previous accountant, assuming they were up to scratch,

They already have your details and an understanding of what you are trying to achieve and have your previous records at hand.

Hi Mark,

Agree with Terry.

While you say you'll be 'definitely' moving back into your house this is not a given. Things can, and do, change.

For example wife and I planned to remain in our house until we were removed in 6ft long boxes. Circumstances well and truly beyond our immediate control now mean we have reviewed this position and have our own home on the market. Things have changed for us and they can for you.

By placing your money in an offset account it means you will reduce your monthly interest bill while at the same time build your cash reserves. This is quite distinct from building equity.

Now let us assume you do return and live in your own home and that you have built up healthy cash reserves. At this point in time you can direct all/part of your reserves in an area most effective for you at the time. This could be paying down the mortgage, doing the renovation or simply retaining the reserve.

Whether or not you go down  this pathway is ultimately your choice – but I would cease making extra repayments into your home loan while you work out what you will do in the short, medium and long term. A couple of months here and there is nothing when long term plans are being developed and refined.

As Terry said do not simply grab the redraw funds and use  them to invest, Get some good borrowing and tax advise and set yourself up properly here too.

I recommend getting in touch with Terry (he is an accountant and broker) so you'll get two highly valued services in the one package which means your broker will be on the same page as your accountant.

Well, I hope so anyway

Hi Lyn,

You don't say where you live and that may help you in your quest.

Some options you have;

1. Phone and email with your confidante.

2. Attending proven workshops in your nearest city/large centre – your locality may preclude this and beware of those with something to sell.

3. Reading books – boring I know, but works for many people.

4. Continuing to ask questions (use search facility first) of this forum – many people will gladly give up their time to provide some feedback & comment.

5. Just getting down and doing it – some people procrastinate forever and then wonder where their life went.

Going to put my vendors hat on for a moment.

The vendor has contracted an agent to act in their (the vendor's) best interest and to sell their house for them.

Real estate transactions in all states are carried out in accordance with the laws in that state which, are in turn, formulated with due consideration to national consumer laws.

In some places I simply cannot take a $10 widget back and get a refund because I 'changed my mind'

As a vendor my agent and I know these parameters.

As a consumer you should too!

Normally there is a degree of buyers remorse – this is particularly the case when individuals haven't carried out their full due diligence but in your opening comments you claimed, "you were serious" .

Really?

How much research did you do? How many properties did you look at? How much legal advice did you get? Was this to be your own home or an investment property?

Sorry but as adults you both made a decision to sign a piece of paper and pay some money as a consideration towards the purchase.

It could be that you'll need to put the expense down as 'tuition fees'

Hi Steven,

I am not sure where the 58 properties came from but the key when starting out is to get to the start line and start the journey. In other words focus all of your efforts on number 1.

When that one is tucked away then look for number 2, then 3 and so on.

Property is all about one step at a time.

Jamie has given you some ball park figures to work with.

At this stage grab yourself a broker and talk to them about your dreams and aspirations, your income and savings level and see what sort of information they can come back to you with. There are a few brokers on this forum who would be good to have in your team. Jamie is a broker so might be worth banging him and email or giving him a call – I hear he doesn't bite. 

I don't know your situation to make reliable comment at this point in time but it is possible the broker may say 'you haven't got enough income or savings now' – If this is the case don't walk away crest fallen and defeated, rather use the information to set yourself some achievable goals.

Then when those targets are met go back to that broker and get going.

You claim what you are charged in interest – in your case $36K/annum.

When the loan moves to P & I you will only be able to claim the interest (in your case $36K).

If you mix private, non-deductible expenditure in your loan (or LOC) account then it becomes messy from a taxation perspective as you can only claim the portion of the interest that applies to your investment loan. Based on your description this does not appear to be an issue for you at the moment.

Hi Iljay,

Studio apartments are often sold on the attraction of perceived high rent returns. You need to understand that a serviced apartment often has significant ongoing costs and these can seriously erode your net cash flow – there is a huge difference between gross and nett cash flow.

Banks see studio apartments as a higher risk and therefore their willingness to lend at reasonable LVRs is often restricted. For this reason a studio apartment becomes more difficult to finance which, in turn, reduces the number of potential buyers and thus the long term growth prospects of these types of properties.

By your a own admission 'there are quite a few available' – ever wondered why?

If the rent returns are that great why are so many available? They simply don't make great investments.

Cheap & high rent return doesn't necessarily make a good investment.

What state – some states have cooling off periods, others don't.

For WA – try http://reiwa.com.au/home/default.aspx

Market Info TAB has suburb price and rental information along with suburb profile detail.

I am sure the good folks at SS would be able to provide some advice for Mel.