Does the same rule apply if say I have 3-4 rental properies? This sounds a pretty good way of getting my PPOR loan down.

I am currently getting $290 per week for the property exactly (Not $1400 as previously indicated), my purchase price is $253000 for a small 2 x 1 (67sqm) within 6kms of Perth CBD (Victory Park). Just wondering, on the current market trend, have I paid too much for this property? With all fees and expenses inlcuded its about $265000, I am a first time investor which means I only want to start small and slowly moving into bigger directions. Especially with the talk of interest rate going up I have been hearing from people with other rental properites saying realestate will go down if interest rate went up another 2%. I am not too nervous about that due to the fact I have got a good tenent always paying on time. And realestate is for the long run.

Love to hear people with their thoughts on this.

Thanks heaps guys for your advise, I should have given more information about our current situation. So here they are:

My business is actually in painting, I am an artist in oil and glass painting, the main reasons I am not starting as an company is due to the fact I am the only person who can paint and I don't own a shop either, I don't have any staffs or any marketing strategies, when people wants my work they will ring me to do the order and when the work is finished they will come to pick up the finished work. Sales are all done through private deals to many art galleries and small arts studios, there is no overheads apart from brushes and papers:) And the interesting thing is I don't deal with buyers directly, I only deal with dealers directly. I do my painting in the house and I sell them to galleries and studios when they are short of stocks. Therefore the chances of I am getting sued by the customer is very unlikely due to the fact we don't sign any contracts or have any deadlines. Although the business is stable, the bucks stops there, I can probably doing painting till I am 75 year old but unless I am become the next Da Vinci the chances of my net business income increasing soon is not likely to change a lot due to the fact I can only do so many paintings per week.

In terms of borrowing issue I have spoken to a broker and based on my current income I can borrow $250000 for the investment property on a interest only base, this was based on the rental returns of $300 per week in the area I am going to buy, at the moment the average rental returns for a similar property is about $330. I have $40000 in savings and my wife is willing to putting down $100000 in savings to cover the shortfall which leaves as an mortgage of $250000 in investment property.

My wife is happy no matter what names is to be putting on the investment property but we both want to get the best result out of this. Since this is truly the very first investment property we are going to have we would appreciate greatly any advise given here.

Best regards

V