Excellent – we'll look forward to hearing about how you get on

Cool thread.  What sort of capital growth have you guys observed in the past 5-10 years in the Townsville area?  I do fancy a QLD holiday, a bit of a tour of Townsville might be in order!

Hi Andolate

Best advice I can give you is as follows:

No need to be fond of your bank… be fond of whoever is offering you the best deal at any given moment.  This will change from year to year.  Be fickle.

Don't restrict yourself by your own ideas.  Plenty of clever folks on here that have generated gobsmacking wealth for themselves and their clients as a result of their knowledge.  Absorb their ideas, they might just get you to an even better position than you could have with your own ideas alone.

Terry's comment about the two titles and possibly splitting the loans was a very interesting one.  Run with it and see where he takes the conversation.  There's usually method to the madness of someone's thinking.

On the surface, sounds like you could get into another loan.  Get in touch with one of the gun mortgage brokers on these forums to discuss specifics.  Terry is a solicitor and tax advisor as well which would be particularly handy if you have legal or tax dilemmas to sort through while you are at it.

Richard Taylor  https://www.propertyinvesting.com/user/qlds007

Jamie Moore  https://www.propertyinvesting.com/user/jamie-0

Terry Waugh https://www.propertyinvesting.com/user/terryw

OK so what do you expect the net position to be on your company's next tax return?  Pop down the true net figure and then a separate figure minus any depreciation deductions.

Don't know… it's a piece of analysis I've not delved into before.  However you can force your own capital growth with renovation, thereby manufacturing immediate equity…

I agree with what Jamie said… if you can hold onto them without causing yourself grief, that'd be the go.

Why not give Jamie a buzz and ask him to crunch the numbers for you.

No worries.  Remember that when you buy an investment property, you'll be needing a mortgage… and part of the mortgage application process is that the bank will look at your credit file.  A credit file is held on everyone, and things like credit card debt or faliure to pay a telephone bill will show up as "bad events" on your credit file.  Similarly, a rejection to a mortgage application gets stamped onto your credit file, making it even harder to get a loan next time.

When you've tidied up your credit card debt and feel you are ready to look at in investment property, don't apply direct to the bank.  Use a great broker who will know exactly which bank to apply for given your circumstance, without risking a rejection.  Be sure to be honest with the broker about things that might affect your credit file (events stay on there for 5 years) so there are no surprises.

Better still, you can request a free copy of your credit file here:  http://www.veda.com.au/ .  That way you know exactly what the bank will see when they hit your credit file for a look see.

Hi Mikko

Any professionals you decide to recruit, be sure you are comfortable in their street cred, or because someone whose opinion you hold in high regard has referred you to them.  Beware of folks that lurk on forums adding no value by sharing knowledge, but trying to drag in your business (looking after themselves but nobody else). An example is Antonio Santolo above who has only three posts to his name all of which are spam.

As Rick Sta says, under no circumstances do you want your current lender (ie the bank that currently has the mortgage over your place) doing a valuation on the property.  If it is worth less than what you owe, they could very put their hands out and ask for the difference.

Terry has hinted about a few things that can be tidied up… he's in the mortgage broking business, why not give him a buzz and chat about sorting everything out.

Terry has answered most of your questions superbly so I won't reiterate.

In terms of whether you should go for the higher yielding property or not is a decision for you.  Capital Growth can be anticipated based on past performance of similar assets, but not guaranteed.  In this regard, I prefer assets that are in sensible towns that will rise in value in a similar fashion to towns around them, but I expect the asset to cover its costs.  I am sure not going to put my hand in my pocket every week to cover the difference for the next however many hears hoping for capital growth to rescue me.

There are many different opinions on this topic.

All this said, I have an aversion to body corporates as it involves and annoying amount of dealing with other owners, so I personally prefer to seek out properties with good yields on independant titles.