And also what sort of increase of theweekly rent that the improvement will have.Chris.

Xenia wrote:
Yes, IO will maximise your cash flow as Simon said

IO will also maximise your deductions as you will have a constant debt for that property which is tax-deductable and not a decreasing one.Chris.

L.A Aussie wrote:
A couple of basic calculations for you to help work out cashflows on an I.P:1. allow for approx 20% of the rent to be eaten up by the "holding costs" such as management, insurances, rates, repairs, 4 weeks vacancy, etc (this doesn't include the loan interest). This is probably a little on the over-cautious side, but it pays to…[Read more]

Tysonboss1 wrote:
There is no piont waiting for the perfect property market, once all the statics, facts and figures are correlated they are months old and the good times have passed.

I agree with you. (nearly)Everyone is always late to the party, so once you see the fundamental changing direction and moving up, you pounce and once they reach…[Read more]

Welcome to the forums Nicole,A good place to start is with setting goals.If you have equity in your house that you cna use for a deposit then don't worry about this.You will need some sort of deposit. So i guess the a goal to set is to save a certain amount of deposit for this property.Or if you have outstanding credit cards debts or personal…[Read more]

Thank you for that clarification Marc. I think I will stay to the "3 x 2", early 90's, sounds good.Thanks,Christopher Fife.

Maybe you should check out this current thread, it is relevant to your post.https://www.propertyinvesting.com/forums/property-investing/general-property/4321476Regards,Christopher Fife.

Thank you so much marc, your help is invaluable. Very helpful indeed.I will check out that book too.

L.A Aussie wrote:
I look at the price of 3 x 2 houses as my first guide, then look at the rent returns they get. It doesn't have to be a 3 x 2 that you look for, but I find that this is a very common property and easier to judge against. In 5 mins…[Read more]

Thanks Marc, that cleared it all up.I do need to set my sights higher, and not settle for yields that low, I can do better. About the moving away thing, hmmm, How does everyone find information regarding there due diligence for an area. Like how can I search somewhere to determine if its good or not? I really need an education in this field of…[Read more]

IMHO stands for 'in my humble opinion'and LVR is loan to Value Ratio. e.g. You own a $1 Million property and you have a loan of 800K with it, so your loan to value ratio is 800,000/1,000,000. (or 80%).Chris. 

Welcome Tuansen,I'm a bit confused what is a 'hybrid' trust??Chris.

Devo, your prediction would be perfect if it came true. I would have atleast 2 IP's by the supposed 2013 Boom, excellent. Maybe even three.The only big problem I'm having is that I hope that the boom holds off at least till the start of 2010. Please, please. then when I buy my next one, shortly after i hope there is a boom and i'm sitting pretty…[Read more]

Hello Tylon,The depreciation, if you are renting it out for the 10-11 months(thus it is income-producing) you can claim the depreciation for that portion of the year. With the FHOG, I advise you to do a google search for the FHOG website to check that you are eligible.With the FHOG, you are saying that you will live in their in the first 12 m…[Read more]

wealth4life.com wrote:
build duplexes sell one keep one … lots of other strategies …

I've never heard of that, build a duplex, sell one and keep the other one as a rental. Your mortgage will drop so much with the sale of one and you should get CF+.  Hmm, and if you build you can also get the advantage of depreciation to the max.I'll have…[Read more]

Thanks for your replies guys,So this is where i'm at; I get a credit card and say with a 10K limit(seems practical in this scenario), I pay for normal expenses with it; petrol, transport, etc. I get one of those 30(or 55) day interest free ones, so that I borrow on it and pay it out and pay no interest. I do this for say 3-6 months prior to…[Read more]

Tatts_83 wrote:
Why not use the $8,000 that has been made from the IP on the personal loan as well. maybe keep a few thousand for maintenance or any other unexpected issues arising from the IP but put the rest into the 2nd personal loan to get it down further?

Thats what I was thinking aswell, but maybe personal loans have problems with lump…[Read more]

Wraps can achieve positive cashflow. Have you considered them, Steve McKnight did tonnes of them. In my calculations my first IP can acheive "atleast" $150 per week cashflow positive with only 20K put down on a 200K house. After my renos and a decent price margin and a 2% interest margin.My calculations read $180 per week but I dropped em, because…[Read more]

1% sounds nice. I know it can vary according to lenders and the LMI company used.Also, this counts as a borrowing cost, and it will be over $100, so it should be tax-deductable over 5 years.So say it costs $2,000.Over 5 years, $400 per year.Say 30% tax rate thats $120 back each year for 5 years.So i'm actually quite happy with our findings,…[Read more]

Thanks again Richard, that webstie helped. I also found out another website(actually a PDF) http://www.prosolution.com.au/articles/gear.pdfFrom a quick skim, a 200K house with a 180K mortgage(90LVR), ON AVERAGE it would be 1.00% of the loan amount, e.g. $1800. If the LMI is going to be this, then i'm not worried at all. I was expecting like…[Read more]

Thanks QLDs. Is there a way that I can actually find out the specifics. I input the data and the postcode and get an amount back for LMI.Chris.