Richard's spot on. It doesn't happen over night.

As a start – surround yourself with some good people – a decent accountant, finance person and a BA if required. 

I'm not sure how you're going to go with finding CF+ properties in Melb  – you may have to look at other areas (but happy to be corrected).

Cheers

Jamie

Hiya

What's the main reason for doing this?

Does the LOC against the PPOR have a really high rate?

Cheers

Jamie

mattliasiian wrote:
Hey Jamie, yeah I am thinking in the future I will, to be honest don't have a exact time frame but if business succeed and enough capital is gained anything can happen.

Thanks Jamie
Matt

OK – it's important that you set up the loan as interest only with an offset rather than principle and interest. This article I wrote…[Read more]

Apprentice Investor. wrote:
Thanks New Guy. No there not crossed at all. That's just how it has worked out so far with moving into the property first. I totally agree being married with two kids and hate moving myself, it's just what I've had to do with work for the last couple of years. I could even be in my PPO

R a while longer yet after this…[Read more]

Hiya

If you're going to pay down any loan it should be your PPOR – not IP. The reason is due to the PPOR debt not being deductible whereas the IP debt is.

Is there a chance this new PPOR could become an IP as well at some point?

Cheers

Jamie

TheNewGuy wrote:
In my mind I'm happy to do a buy and hold (I'm in my early 30s), with a combination of yield and growth across the portfolio with the eventual idea of paying them off for a passive income around retirement…

Sounds like me just with the odd reno thrown in.

Cheers

Jamie

Hi Paul

Tread carefully and don't second guess yourself – they will try and convince you otherwise but the fact of the matter is that the advice they are providing is wrong and will cost you in LMI and poor structuring.

Cheers

Jamie

I doubt you'll find much value from a fin planner. Be careful if they try to push you towards purchasing property – particularly off the plan stuff. 

I don't personally know of any decent bankers in Canberra – but of course I'm also probably quite biased.

If you're looking for a BA for SE QLD you could try Richard Taylor/Jac M or Andrew Allen. I…[Read more]

Hiya Waydo

There's been a fair bit of activity in West Syd for a while now – I had clients only a year or two ago buying for low $200's – now they seem to be selling for a fair bit more. It's a big area though and there will always be opportunities. Personally, I'd keep my eyes open on other areas too.

Cheers

Jamie

Run for the hills.

They're crossing your loans up.

There is no reason why the LMI shouldn't be credited – unless they changed LMI providers since you took our your loan(which I doubt). Which bank is this?

Just goes to show the incompetence of some bankers.

From your previous posts, YOU have a better understanding of IP structuring compared to…[Read more]

Hi Paul

You may need to look a bit further aboard and use one remotely if you're after extensive IP experience. I can't think of any – but could possibly point you in the right direction in Syd.

Cheers

Jamie

All comes down to purpose – what are the funds that are being redrawn used for? If it's for investment purposes it will be deductible. If not, it won't.

Cheers

Jamie

Hiya

Usually just need to provide the statement for the account that the deposit/costs are coming from.

CBA will want to see statements from your main transaction account if it's not with Cba.

Cheers

Jamie

My pleasure – just post again if you have any dramas with your bank.

Cheers

Jamie

You need to get expert advice elsewhere Majic – I'd give Terry a call.

Cheers

Jamie

Yeah looks fine.

Just make sure that the banker doesn't cross up both properties (they tend to do this without the borrower being aware).

Another thing to touch on is that both properties are going to be at high LVRs. It looks like you'll be taking the PPOR up to 90% and the IP purchase will be around 90% or higher. Not all banks will be…[Read more]

Hi Paul

Your plan sounds about right.

The end result is three loans.

PPOR
Loan 1: Your current PPOR loan
Loan 2: Equity release against PPOR to cover deposit/costs on IP (can be an IO loan or LOC)

IP
Loan 3: Remaining balance for IP

As mentioned above, make sure they take into account the LMI you've already paid on your PPOR when carrying out…[Read more]

Hi mattliasiian

Let's take it back a step.

Are you planning on renting this place out at some point and purchasing another PPOR?

Cheers

Jamie

Going direct can also be luck of the draw in terms of the quality of the banker you get.

I get nervous going to my local bank branch for anything because some of the staff are hopelessly incompetent (sounds harsh but it's the truth). I tried switching an offset account from one loan to another and it was an extremely painful…[Read more]

tommytucker wrote:
Hi All

I'd like to hear from those people who have made it out of the rat race how long it took them to make a reasonable portfolio and then make good their escape. This escape may have been to a self-employed business or to a villa in Tahiti.

Tom.

Hiya Tommy

The majority of the stories in API and YIP magazines features…[Read more]