?

diluca you are very lucky, you have responses from two awesome brokers now, Jamie and Richard

I too have been inheriting lots of cashola from long lost relatives lately.  I hadn't realised I was related to so many wealthy Nigerian bankers.  Odd… pity it isn't true… perhaps then I wouldn't be blessed with such pasty white skin!

As an example, you will want to work out :

– Whether it is best to buy the property in your own name, or under a trust structure (or other setup) .

– How the assets you already have can be utilised properly to help you borrow as much as possible to buy the next Investment Property.  That way, cash you have is left free for you to spend on yourself, and mortgage interest on the investment property becomes a tax deduction.

– You might decide you don't want to spend all your free cash on a deposit on just one IP… but rather split it in two and get two IPs.

These are examples of things you would talk about with a really good mortgage broker.  There are three really well respected brokers on these forums:  Qlds007 (Richard Taylor), Jamie M (Jamie Moore) and Terryw.  Terry is also a lawyer as it happens.

Hi diluca

Jamie Moore, who responded to you above, is a very well respected broker on these forums.  You have a great opportunity to leapfrog your financial position.  If you have the right people on your team the results will be awesome.  Get the wrong people and the results will be paltry.  Why not give Jamie a buzz to discuss.

Hi Foo_Cat,

Have a chat to a local draftsperson, they can give you a bit of an idea of what may be possible, normally they'll give your situation 5mins or so of thought for free before proceeding.  They should be able to give you a vague idea of costs .  Have a chat to council also about what is possible on your block.

You would also need to chat to your accountant to understand the taxation implications.

Hey Jamie excuse my naivety, what is STG?

Hi EW

Good on you!  Finally someone that sees it is a bad idea to make a loss every month!

Have you looked at Ballarat?  It is a regional city with a pretty fast train to Melbourne.  It has a university and a hospital and local industry (so plenty of available tenants) and you can have a whole house for less than $250k, and rent it out for an amount that you would not be making a loss.

Take a look!

Books are written to generate income.  They will generate more income if they are written in a manner that targets the bulk of the audience.  In this case, this means beginner investors.  It's where you are luv.  There is not a big enough market of people doing or wanting to do the fancy footsteps you are stepping!

You can have your cake and eat it too.  You can fiddle with the mortgage in a very specific manner and use equity to buy the next IP, but still have the other IP standalone.  Jamie M has already responded, why not get in touch and talk to him about how best to do this.