Sounds like you’ve skipped at least 2 steps in a solid investment plan… Before you consider the best loan structure, consider your objectives first and then your ideal asset structure.

Talk to your accountant and read lots of books for these. Education and preparation are everything. Just like the house you’re planning to buy, if you don’t have solid foundations to your plan your investments are likely to fall down around you.

THEN talk about loan structures.

I don’t know the answer to question 1 but as for question 2, refer above.

Don’t rush into anything, the deal of a lifetime comes about once a week. Good luck!

When we bought our PPoR we spoke to a couple of the neghbours and asked them a few questions – Is the street used as a drag strip? Young Families in the area? Quiet? How long they'd been there? What did they think of it? etc etc… You'll get heaps of info from them…

Secondly, did you notice kids running around the streets or riding their bikes (not loitering, that's different)? Kids being kids without the need for adults watching them would indicate to me that either a. Their parent's don't care (unlikely) or b. they feel safe letting their kids out to play…

At the end of the day, you're borrowing a truck load of cash and paying a truck load of interest to live somewhere, so if it doesn't grab you, I'm with Kellstar – walk away.

From the first link above…

• You and your spouse/partner must not have owned residential property, either jointly, separately or with some other person prior to 1 July 2000, in any State or Territory of Australia

• You and your spouse/partner must not have occupied for a continuous period of at least 6 months, a residential property in which either of you acquired a relevant interest on or after 1 July 2000 in any State or Territory of Australia.

This says to me that as long as you didn't own a property prior to 01/07/2000 and haven't lived in a property you own for more than 6 months, you're still eligible.

Chris / Jo

This is a public forum and you make comments to gain feedback from people, in this case a lot of people that have more experience in these matters. For what it's worth I don't consider myself to be one of those, just a beginner myself.

Research and Preparation are the most important things when it comes to investing in anything, not just property. Read around these forums and you'll see them mentioned countless times. Research means reading books, asking questions, talking to people, courses etc. Preparation includes speaking with your accountant at the very least to make sure you have clear objectives and are structuring everything correctly to reach those.

Ultimately, of course the decision is yours and I'm sure everyone here that has either posted or simply read the thread wishes you all the best with it.

TBH it sounds like you got sweet talked into signing on the line before you spoke to an independent accountant, independent valuer, independent lawyer etc and are seeing your investment through rose coloured glasses, which is a dangerous thing to do.

You mention that at worst you'll sell for a loss and put it down to experience – you must be far better of financially than myself Rene Rivkin used to say that the pain of losing a dollar is far greater than the joy of making one.

Whatever the case, whether you've researched and prepared or not, good luck – I hope it does work out for you and hope you don't end up putting it down to experience.

You can do both – the IP first AND still get the FHOG…

https://www.propertyinvesting.com/forums/getting-technical/finance/4325600

Third post from the bottom of the page.

Go to work!

Best place to start is by reading lot's of books on property, investing and tax / structures.

Then figure out your objectives – what do you want to gain from investing? Reduction in taxable income? Passive cashflow (i.e income you don't have to work for)? Asset protection? A 'legacy' for future offspring? Is it simply a land grab (because they aren't making any more)?

Then speak with an accountant – they'll give you advice on what you've come up with. Make sure you go in with an idea though, because their time is your money.

THEN start looking for a place.

The first steps are the boring ones, but nothing can substitue for knowledge and it's easier and potentially far less expensive to put the right structures in place from the beginning than it is later on. Don't rush it – it's more important to get it right.

As for renting rooms in your PPoR – it's a personal thing that you'll have to weigh up yourself. Privacy vs income, all that stuff. It will have implications on your income / expenses etc. Best speak to an accountant to get all the info.

Don't draw on your IP. The interest you pay on the equity draw or redraw won't be tax deductible like it is now…

Second, you will, in effect be borrowing 100% of the value of your new place – <$38k from the equity and the remaining on a new loan. Can you afford the payments on that? You'll be at least 90% geared – could you afford a negative equity situation?

Doesn't sound like you've factored for legals, Stamp Duty, bank fees etc. Some places will capitalise this, but it will increase your gearing and repayments even further…

I'd be opening a high interest account and putting all my spare coinage in that from now on until you have your deposit for the PPoR. Let the IP do it's own thing for a while – only pay what you have to and concentrate on your deposit. You'll get there!

Some 22 year old fresh out of uni with a degree they'll never get a job for, no doubt…

Welcome aboard Justine!

As far as I know, the income would be distributed equally between the two of you, yes.

Best person to speak with about income and taxation matters is an accountant – he'll tell you what is deductible etc.

As for insurances, my landlord's building insurance covers 10% of the value of the building for contents. Anything that can be broken by a tennant that you would need to replace should they bolt should be covered – light fittings, ovens, cooktops, Blinds, carpets etc.

Cheers and good luck!

Welcome aboard, Martin. Enjoy your stay with us!

Investing and structures is really a different for everyone thing and would possibly even be dependent on the structure of your current business and what your objectives are.

For instance, my objectives are asset protection, passive income and flexibility as to who gets that income, so I have my IP positively geared in a Discretionary Family Trust, controlled by a company of which I am the sole director. That fits my objectives and situation but may not yours…

You say you think there could be better accountants out there, best place to start is by asking friends / family / *other investors* if they can recommend anyone and sitting down with them to see if your hunch is right. No harm getting a second opinion.