It might be time to cross over to the dark side Terry

I know how much you love apple products

I post from the iPad with no dramas – accept the odd auotcorrect typo.

Cheers

Jamie

I always recommend James from House of Wealth for my Melbourne clients.

Cheers

Jamie

Hi Franky

For the reason Richard mentioned above your post – if you ever turn your PPOR into an IP, you wouldn't want to have paid down a large chunk of that nice deductible debt.

Cheers

Jamie

Hello again

I think you just need to keep things simple.

Going back to the original example with the three facilities, when it comes time to purchase another IP – you could either extend loan 2 or loan 3 (depending on where the equity is).

Cheers

Jamie

Hiya

Welcome to the forum.

Run from the first guy.

You need to set-up a second interest only loan against your current PPOR loan, this will be used as the deposit/costs on your IP.

You then set up a second interest only (stand alone) loan for the remaining portion (with the same or another lender – depends on where the best fit is for you).

So in the end, you'll have three facilities.

1. Current loan against PPOR
2. IO equity release against PPOR (used for deposit/costs on IP)
3. IO loan for IP

There's a fair bit more to consider given your plan to purchase more – but this gives you a general idea of the initial structure.

Hope that helps.

Cheers

Jamie

No worries – those contacts above will be able to help then. You'll be able to get their details from a quick google search.

Cheers

Jamie

Hi again

Please make sure that the broker you're seeing understands investment structures and your goals – that's paramount.

I'm just a bit skeptical of off the plan properties at present. They certainly have their place – and when the market is moving they can provide a decent gain between exchange and settlement. However, in a stagnant market – there's a chance of the valuation not stacking up. Imagine if the banks valuation comes back lower than the price you've agreed to…..

I don't want to sound negative – and I don't have the specifics on the deal at hand, but when I read off the plan and the small unit size….it caused alarm bells to ring.

Don't rush – do some more research before jumping in.

Cheers

Jamie

Hi c-man

It's too broad a question. What constitutes a good deal to one investor won't always be considered a good deal by the next.

Some start out with a nice chunk of equity and decent incomes to leverage off. Others start of on smaller incomes and no equity. The former might be on the hunt for a block of units – the latter might only be able to afford one of those units.

Don't rely on anyone to tell you what a good investment looks like. This needs to be determined by you and involves carrying out your own due diligence and making decisions based on your own risk profile and the resources available.

Cheers

Jamie

Hi there

Welcome to the forum.

Some good advice above.

I'll keep my comment simple – off the plan and 42m2 in the current environment doesn't sound like a good investment to me.

Cheers

Jamie