Forum Replies Created
Again, thank you both for the replies.
Last week I was 100% ready to purchase my first property, but I do realise now how little I know and that I obviously need to be more careful.
Terry – I do now understand what you mean when you say serviceability. And it definitely have got me to rethink my plan. We’re obviously trying to make the most of the money that we’ve got. Thank you.
Benny – You are correct, any information is good information. And this forum is a god bless for me :) We’re actually attending a seminar in a couple of weeks.
Yes, I was very excited because I was about to buy my first property :) But I clearly didn’t do my research. I do understand now there’s different rates in different properties. And I need to crunch the numbers at least 3 times to make sure they are correct.
I was thinking that the setup costs was paid “separately” and I didn’t calculate them into the rental income from the property it self.
I’ve started to read the articles here, starting with the links you gave me and I realised the information here is priceless.
Thank you both for the help, I will keep you posted :)
Thank you both for the reply, much appreciated. As you probably understand, I do know very little about investing but I’m eager to give it a shot. And I only understood half of what you both wrote :)
Benny – I’ll be honest, when I started to look for properties I started to look for high yield properties only. I figured that would be the easiest way to get positive cash flow, but am I correct? This property is leased for at least another 1.5 years
What do you mean if it would cost the same as borrowing $100K or $500K? These figures got me lost :)
I think more of the ongoing costs, is the rates in regional Australia different to any other rates in Australia? Do you pay the same rates in Melbourne and Sydney as in regional? Is it worth to buy this property, since there’s not going to be that much growth, I was hoping that the high yield was going to generate some income.
What scares me the most is if this is the right property for me to buy. Will this property help me buy another one later on? Is this a smart buy if I want to build up some sort or portfolio? And how should I go with payments. My goal is to invest in another positively geared property once we paid of about 50% of the first one. Is that a smart thing to do? Pay less, pay more…?
We choose our self to pay 25% deposit. Reason being is to avoid LMI. We could have put in more. And what do you mean when you say “could you do better”? Better as in borrow more money or put a bigger deposit? We could borrow more money.
I hate to sound silly and stupid but I don’t know if it’s a IO or P&A loan. We indicated to him that we are planning to pay the house of within a couple of years.
Terry – Obviously you’ve got a point. This is me trying to get into the market. My goal is to build up more positive gearing and one day replace my partners income :)
I’m sorry but I didn’t understand, $25k deposit and costs?
I’m reading and reading online but there is sooo much information and I just don’t want to buy anything that’s not going to get me anywhere. Today I found out about compounding interest? I’m lost :)
At the end of the day, as mentioned, my end goal is to build up a portfolio with positive gearing so that my partner can stop working :) The first thing that came to my mind is positive geared properties, a few renos here and there to up the equity buy another one etc. And meanwhile, keep the repayments low, pay of as much as I can before moving onto the next project.
I hope I make some sense to you guys but please correct me if I’m wrong. Which I probably am :)
Cheers / Fred
