Hi again Frank

Might be time to read those Terms and Conditions again (or for the first time as the case may be).  The moderators are pretty keen on jumping on you for suggesting people call you or email you.

Wow.  Spam for the first post…

Technically only an accountant or financial planner can give you “advice” on financial position.  However the cashflow position of the property will be obvious to a good broker.

Generally a property on an interest only loan can become cashflow positive either by starting out as a positive cashflow property (sounds like this property is not in that category); or by you piling money into an offset account against the loan in order to reduce the interest payable; or by letting time do its thing and increase the rent each year; or a combination of these things.

Hi Carl

I wasn’t entirely sure what you meant by “I would happily pay (as an ongoing investment fee) $1000+”.  Did you mean as a monthly interest repayment?  My other questions are: What amount were you looking to borrow, and for what purpose?  eg Purchase office chairs, pay for advertising etc.  What “stuff” do you and your business own?  Perhaps you own a car or a boat that could be used as security.  Perhaps the business has some plant equipment that can be used as security.

It’s not the case that all the “cashflow positive properties” are clustered in one state.

Cashflow Positive properties, or those that cost so little to hold it almost doesn’t matter…. they are out there in particular pockets all over the country.  The pocket locations and dwelling types are constantly changing.  One month suburb X is dishing up the goods, and a few weeks later it might not be, but has been replaced by suburb Y.  One month, 3 bedders in suburb X are dishing up the goods, and a few weeks later 3 bedders are no good, but 4 bedders are.  It’s a moving target.  It keeps numbers-obsessed-me busy… tracking suburbs to notice as they are falling out of favour with me and noticing the areas that are coming into favour with me.

Hi Steve

Not sure if you are aware or not, but if you go into a particular member’s profile and bring up their past posts and try to click on one, an error comes up because it is trying to link to the old location of the post.  This probably makes it tricky in particular for newcomers to read a bunch of posts from a particular user if they find their posts to be particularly helpful.

Yep, I use them all the time.  Easy to deal with, good rates, and fast transfers.

Further to what Richard said, it is very worrying how much incorrect information Arun is posting. He is a person offering broking services it seems. We know only too well how catastrophic it can be when someone’s finances are not set up correctly. The forums are supposed to help people make their position better – not worse. As TerryW said in a separate thread… he’s dangerous

These sentences make no sense.

There are so many different things you could do.  For the sake of the exercise, here is the approach I would take under a few different scenarios…

Scenario #1: you are a person that is living in a house that has some sort of mortgage on it.

1. Pay down any debt on the house you are living in

2. With the leftover money, invest in investment properties.  If there was sufficient cash to buy a property outright for cash, I'd consider doing so provided it meant I could buy the property cheaper than if I was buying it with a "subject to finance" clause.  Then I'd bring a lender on board after the fact to place the property under mortgage, thereby "extracting equity in the form of cash", and using that to fund deposits, stamp duty and buying costs of subsequent investment properties.

Scenario #2: you are living in rented accommodation, own no property and want to buy something to live in.

1. Buy a property to live in using the money you have.

2. Refinance the property to extract the equity into an investment loan that would allow you to purchase investment properties.

Scenario #3: you are living in rented accommodation and have no desire to buy something to live in.

1.  Use the funds to cover deposits, stamp duty and buying costs on investment properties.  Have a bank fund the remainder.