Good point Luke – I hadn't considered the PPOR aspect of the property. Having said that I understand the owners can opt out of NRAS along the way. From memory it is an annual opt in type arrangement.

The key for me is that the property must fundamentally stack up without tax credits. I have seen a few NRAS properties marketed and the over-riding message is the $100K tax credits. Little mention of the fundamentals – so, don't be seduced by the tax credits associated with NRAS.

Stop right there.

Unless there are extreme circumstances I would always use a broker over bank staff.

If nothing else a bank employee only has access to their products – a broker can access many products from different banks. Your best option may be another bank – can't see your manager telling you to go up the road for a better deal.

First part of this post would only apply if it were cash and not equity.

Hi Kosta,

Congrats on the first bud on your family tree.

For me it would appear as if the 'equity' is burning a hole in your pocket and reading Steve's first book is a little like pouring petrol on the fire. Key issue for you to remember is you are only 30 and you do have time on your side so decisions do not have to be made in haste.

I would add that the world has changed a fair bit since Steve wrote his first book and times are different.

Was reading an article in BRW Dec, 2011 edition yesterday and they note that property investors will have to be more actively involved in their property investing than they were 10 years ago. Many mum and dad type people made great gains more by accident than design and some of the simple buy and hold type deals will not provide the same returns over the next five/ten years. In essence BRW were advocating a value adding type approach along with selection of property alongside major developments where jump up in values were more likely with development progressing. 

First thing to do is read a few other books so you get a more balanced point of view – Lomas, Yardney, Somers, Spann all wrote decent property books which you may find of use.

Second thing to do is to start to identify people you can work with and rely upon to help you along the way. Brokers, accoutants, solicitors that sort of thing. Taking advice from friends and family can be risky unless they too are successful proeprty investors.

Third thing is to set yourself some sort of long term goal – this may be a little foggy at the moment but it will become clearer as you read more widely and start recognising strategies that are more suited to you and your situation.

And finally start small – get your head around the ins and outs of property investing through practical experience rather than book learning. By starting small you minimise the chance of expensive mistakes and your learnign journey will begin.

All the best with it.

Hi Eric,

In addition to rejigging your loans I would also look at making sure you have completed an Pay As You Go Withholding Tax form (or whatever it is called now) and doing this in conjunction with a depreciation report.

While this is a little smoke and mirrors type trick it does help with the hear and now.

Know what you mean – budget considerations are always a major issue.

If you can afford it I would suggest Perth is a better option than Bunbury. Getting as close to city centre as possible is an even better option.

We are looking at some North Perth options with potential rent return of 9%. Was also speaking with a Vic Park property manager today and she said rental 'home opens' in northern suburbs and close to the city are attracting big crowds and it isn't unusal to see rental applications going in above askin gprice. Message wasn't the same for southern suburbs.

Hope this helps.

Hi Dk,

Given you have recently bought your first home it is highly possible you have limited investment options at this point in time – limited equity in your own home for starters. Now clearly this may not necessarily be the case so a chat with a broker may be a good place to start so you can find out what your financial position is in terms of borrowing money.

If you get a favourable response then you can start getting the wheels seriously moving. If the answer is not yet then you have time to do, as Jamie said earlier, some more reading, research and knowledge acquisition so when the time is right you are in a position to move.

Just my thoughts.

Hi Dkb,

Have you identifed the type of property you are seeking and your state of preference?

The reason I ask is that there are buyers agents (some of mixed quality I might add) who have a particular focus on particular properties in particular states.

If part of the attraction of Destiny was they have an office in Perth you will find business can be done remotely and there really isn't a great need to go face to face. In saying that I am aware some people (and you may be one of them) do like to eyeball their 'advisor' at least once so they can get a feel for them.

Goldfish or Great Dane – does make a difference.

Some states allow you to add clauses and penalties specifcially relating to the leasing of a property to a tenant with pets.

Check your states 'tenancy acts' to see what applies in your state.

Some pets are not a problem and having them onboard too can be a good thing. Make sure you get before and after photos.

If the property is strata titled you will need to chekc your by-laws as there may be some rules applyign to pets in the complex.

Hi FF,

It would appear as if your aim is not consistent with the proposal put on the table.

Bottom line is if you want to pay off your home sooner and replace your wife's income then you will need to look at other investment strategies.

As others have said negative gearing relies on the property increasing in value. I would hasten to add the $100-$150/week shiortfall is based on taodays interest rates – any increases to these and your shortfall will increase by a similar margin too.

I might add the 4 yrs between purchases and reduction of costs is something no-one can predict.