Thanks again for another report, Mike.CheersGez

sjh_85 wrote:
If your planning to invest in multiple properties I would stick to one bank if possible and have a plan, every investor will hit a wall where the bank will lend no more money, that is unless you have good cash flow as well.

Hi sjh_85,Just curious to know why you would stick to the one bank? As you noted in your post, it is highly…[Read more]

Thanks again, Richard and S/C.In response to S/C, I do go a bit overboard sometimes in keeping statements etc in order, but it helps me in the long run – I hate being disorganised.I don't have any investment debt at this point in time – personal debt. My wife and I have a mortgage for our PPOR, which, as this thread has taught me, can be a great…[Read more]

StumpCam wrote:
Gez it's fine to pay off your PPoR loan or save it; it's all good equity of one form or another towards your next IP. Every single dollar of equity you create by either paying off your loan, putting into an offset account or simply waiting for capital growth means that you can borrow another four towards your next IP. You'll…[Read more]

StumpCam wrote:
Sorry Gez, been away for a while. The concept is a lot more general than just one property. Borrowing to the maximum possible simply means buying as many properties as you can within the limits of your equity and debt servicing capability. You are simply trying to maximise the total capital you control. The exact percentage bo…[Read more]

Thanks for another report, Mike.Will definitely request more.CheersGez

StumpCam wrote:

gezzy wrote:
I'm just curious, in relation to your above post, how does borrowing the maximum amount possible give you a larger potential for capital growth?CheersGez

Hi Gez, I'll put my 2c worth in and try to answer that: Borrowing the maximum means you have the maximum possible value of property in your name. If all…[Read more]

obie1 wrote:
Sorry Gezzy I don't need to hijack your thread but hopefully this info helps you anyway…

No dramas, Obie. The more info the betterCheers

obie1 wrote:
Hi Gezzy,This is my first post on this site but hope I can help you a little.I used my PPOR equity for my first IP and it has worked out great.I borrowed 105% for my first IP using my PPOR equity as a 'deposit'. This covered loan costs and Stamp Duty.My lender for my IP now has a second mortgage on my PPOR (I have over 250K equity…[Read more]

gibbo1 wrote:
There are many different strategies used by different people.  One of the advantages of 20% deposit is reduced lending costs.  One of Steve's main aim's is finding CF+ properties, this is easier when borrowing smaller amounts.  Another strategy is to borrow the maximum amounts possible (nowadays still a cpl of lenders around the…[Read more]

Hi All,Another question – as stated in my first post, Steve McKnight recommends saving a 20% deposit to purchase an IP as opposed to 10% to avoid paying LMI. I just wanted to know what your thoughts were on this? With the positive responses I received in regards to using equity as a deposit, I'm now wondering how much should be used as a deposit…[Read more]

Well done, spudway. You copped a lot of crap from your post when all you were seeking was help – it's good to hear you got finance in the end. Hope all goes well for you and your family.CheersGez

Thanks also to Investors Zorba and Qlds007 for your input.I really appreciate everything that everyone has to contribute.CheersGez

Terryw wrote:
Hi GezzyBest to explain with an example.you have a $100,000 home loan$20,000 cashand wish to buy a $100,000 IP.what would you do?most would use the $20,000 for the IP as deposit, so end result is$100,000 home loan = non deductible interest$80,000 IP loan = deductible interestBut I would do this$20,000 deposited into the home…[Read more]

L.A Aussie wrote:
It doesn't matter what the price of the IP is, it is either bought with cash and borrowings, or just borrowings, or just cash if you have enough.If it was valued at $200k and you could buy it for 80% of it's value, then yes, you would have some equity.

Thanks again, Marc.Cheers

kum yin lau wrote:
Hi, I used my PPOR equity [paid cash when I bought it] to buy a 2nd, 3rd, 4th, 5th, 6th and 7th and 8th and 9th property. 5th and 6th are commercial and 7th and 9th are devt properties. 8th was PPOR 2  and supposed to be a devt but it was too hard and I sold. I'd always X collaterised because I'm in the category of 'hard to…[Read more]

Thank you Jamesy and RedRoof for your replies.

Terryw wrote:
of course!Most people use the equity in their home. It wouldn't be a good idea to save up a separate deposit for an IP if you still have a loan on your home as you would be losing tax deductions.

Hi Terryw,Could you please explain how you would be losing tax deductions? I've read many of your posts and value your advice and…[Read more]

L.A Aussie wrote:
The other "con" is that you have no equity with 100% loans, and if somethinbg goes wrong at the start and you need to sell, you may have to sell at a significant loss.

This wouldn't be the case though if you were lucky enough to purchase a property at a bargain price, well below market value, would it?Thanks for your reply,…[Read more]

I think at times it doesn't matter who you build with, some people will have problems, others may not. My wife and I built with Porter Davis (in Point Cook) and have been in our house since March of last year. We have had nothing but headaches since we moved in and just last night we came home to one of the toilets not flushing. We have had to…[Read more]