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  • Profile photo of investrentalinvestrental
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    Sorry limetorres.  Didn't explain myself fully.  Their loan could be the deposit on the house for you.

    Profile photo of investrentalinvestrental
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    Hi linetorres
    You are doing the right thing now.  Stick around the forums and watch, comment, ask and learn.

    Many young ones I know of that got into the market and did well are those that got in with help from parents as early as possible, bought a 4 bedroom home and rented out three rooms and added that rent to their payment on the property.  This was very profitable for them and quickly reduced debt repayment. 

    Re parents, they could be part owners or sign up a legal loan between the two of you and they could have a second mortgage.  That gives you independence and they sound supportive with their advice and help.

    Profile photo of investrentalinvestrental
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    Hi nico
    I have made a comment to Terry re loans but for you I would like to say that you should have no problems in owsning 5 properties by age 45.  As properties increase, the more you own the more equity build up you get:

    1 property x 10% = 10% = $300,000 = $30,000
    3 properties x 10%  = $900,000 = $90,000
    6 properties x 10% =  $1,200,000 = $120,000

    It was not so long ago that properties were increasing at over 10% a year.

    So you can see how once you have a couple of properties you quickly get the equity to purchase the next one.  This is how property investors with several properties can grow their portfolios so quickly.

    Of course there are a lot of other considerations too with loans and repayments.  But just wanted to give you an insight into possibilities.
    Good luck

    Profile photo of investrentalinvestrental
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    Terry
    Just wanted to check here, I am reading that the second loan is on the first home and if so I thought that would not be tax deductable. 

    I would have thought that the second property should have a 80% mortgage using the first home equity as the deposit to get the best tax savings.

    Then subsequent purchases could be bounced off the investment property.

    Profile photo of investrentalinvestrental
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    Welcome hostonbarry.  What's the big plan for Valentine's Day?  A proposal?

    Profile photo of investrentalinvestrental
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    Hi Emerald Mum
    Not sure about how to increase loan on your existing house but if you considered the renovation option you would want to make sure you do not overcapitalise and that you would get extra rent to make it worthwhile.

    I am tending to think that selling would be the option, transfer your loan to your new home (if it is transferrable) and buy a new property on 100% loan.  The tax savings could make this the best answer.  If you rebought you could possibly get a new or newer house and also get depreciation allowances.

    When you talk to an accountant make sure they specialise in investment properties.

    Please leave your strategy when you have decided as it would be good to hear your decision.

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