Hi Jo

If borrowing capacity is an issue then you might have to wait until your returns are beefed up -there are a few lenders that will go off ones years return so you might only have to demonstrate one strong year.

Cheers

Jamie

jojo wrote:

My thoughts have turned to what a plan B might look like, and that would be hold and rent if necessary.

Nothing wrong with this approach. It’s not easy making money from short-term property transactions – wealth (IMO) is generally created over the long term with property.

Cheers

Jamie

Wikibank Aaron wrote:

For accounting purposes it would be easier for you to use your PPOR + Investment property as security and have only one loan. However yes you would need to cross collateralise.

That would be a nightmare. You’d end up with a contaminated loan and not be able to claim any deductions.

Cheers

Jamie

Hiya

Ex housing commission properties can make for good investments. If the numbers stack up – I wouldn’t eliminate them from your search altogether. Besides – some of these properties were built to last!

Cheers

Jamie

Agree with Corey – if cash flow is the aim of the game then don’t limit yourself to one geographical location.

Hi Andrea

There’s been a few posts on this – if you do a search you should be able to find some recent recommendations.

Cheers

Jamie

Hi Mah

Just make sure that the bank you’re dealing with will offer a loan approval for a 6 month period.

Cheers

Jamie

Sammy88 wrote:

My question is where can I possibly start looking around that price range?

Hiya

I guess the obvious response is to look around where you live since you’d like to reno the property yourself – you don’t want to travel too far.

Which city/town are you in?

For what it’s worth – I think it would be quite tough renovating and selling cheap properties for a profit. I think you’d be better off renovating, holding and releasing equity to fund further property purchases.

Cheers

Jamie

curtis_07 wrote:

Hi, I am fairly new here and trying to do all my research before buying my first IP.
I’m looking into some properties and some suburbs and believe I can find some positive cashflow properties.
My concern is that these properties are positive with the current interest rate. However, if this goes up the properties may become negatively geared. I am wondering how people protect themselves from this.

Best to use an inflated rate when calculating the anticipated holding costs. Rates are at historical lows at present – so use a rate of 7% which is closer to the long term average.

Cheers

Jamie

Agree with Corey – you’re going to have to look into overseas funding. Perhaps hit up Richard Taylor who spends time in the UK – I think he might invest their too.

Cheers

Jamie