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for me i would steer clear of DHA investing. My father (conservative investor) bought into one in 1992 at salamander bay just north of Newcastle mainly based on the long lease and yeild but what happened when he tryed to off load it.. 12months to sell, capital gain basically O, I told him to buy a terrace house in surry hills sydney for 100K (less than the defence house back then)with about a 8% yeild at the time, the same terraces are selling for 1million plus now. He could have had 5 or 6 Million dollar terraces by now in a very good rental area. Be careful where you park your money, buy quality assets in high demand and you cant go wrong.
Just my opinion hope it helps
Thanks so much richard for your professional advise and putting my mind at ease, I noticed you answered basically the same question I posted on another thread also before i read this one. You obviously do a bit of surfing and problem solving on this site. Good for you
cheers
hi newbi, qld007
thats really helpful but i have some more questions for you
Newbi2,
do you mean you pay down your PPOR loan and reduce the loan amount with the profits of sales or do you place the cash in an offset account? That leads me to another question. What happens to an IO loan when the offset account equals or is more than the loan amount. What the best plan off action at this point for PPOR loan.qld007
Yes that advise makes sense to me. Just wanted to know if i was paying principal and interest instead of IO with an offset account (currently 30K offsetting $150K against 750K house) would I be actually saving any money or does paying interest only on 120K the same thing, sorry I find this stuff hard to figure out, get my head around.thanks again guys
hi bruham
yes thanks for that, yep that all sounds good, I think scarboroughs the go two, and glad you agree as you said its ilke northern beaches of sydney 20yrs ago, ( i grew up around terrey hills so know it well). Yes wynum has less appeal for me but I can see its value being close to Manly which is now quiet expensive in comparison and much closer to Brisneyland than Redcliffe. However in Scarborough there seems to be alot going on from my quick observation from afar. THere seems to be alot of large blocks in scarborough and anything over 800m2 is a basically a development site and selling well. Hence the sale of many houses on large blocks and mutlipule block sales. Obviously scarboroughs set for lots of up market apartments/developments in the future which should bring in more infastructure, cafes and lifestyle oportunities to further fuel growth. Dont know james street will look it up. Good luck with it.
EH
I have another interest only question. I have an Interest only loan on my PPOR with an offset account attached, AM i better of switching the loan to principal and interest and attached to the same offsett account. Is there actually any difference finanically. Advise appreciated..
