Hi Dellas

Congrats on saving such a large deposit – that's certainly no easy feat.

What would I do? Personally (and I stress – this is my opinion), I wouldn't put all of that money into the one property. I'd be inclined to take out a loan around the 90% mark (sure you'll have to pay some LMI but it can be added to the loan). I'd then drop the remaining portion of your savings into an offset account attached to the loan for future opportunities/contingencies. This is one way of mitigating risks

Xdrew makes some valid points above – and it is important that you carefully consider how the ownership will be divvied up if your contributing all of the savings.

In regards to buying a PPOR or an IP first. Personally, I'd opt for a PPOR – and preferably something you can add value to. This way, you're not waiting on the capital growth to kick in – you're creating it. You can then have the PPOR revalued and depending on your borrowing capacity and other factors, look to access this newly found equity and purchase your first IP.

Cheers

Jamie 

Hi red man

Sorry to hear of your experience.

I can't believe they returned the bond. Surely they have documented evidence of the condition of the property prior to it being rented and what it looked like afterwards. If it's not returned in the same condition, I would have thought the bond wouldn't be released in full.

I'd call your insurance company and get advice.

Cheers

Jamie

No worries at all, I've always found it very useful.

Cheers

Jamie

Hi Epsom

Welcome to the forum.

Personally, I wouldn't look to pay off the PPOR and then pay cash for the IP deposit.

Instead, you can borrow against the equity in your PPOR to fund a 20% deposit and purchasing costs for your IP. These funds will be tax deductible whereas if you were to use your own cash it wouldn't be.

You would then source the remaining 80% from the same or another lender (just depends on where the best deal is for you).

Cheers

Jamie

Hi John

It's hard to comment on what's best for you without knowing your particular circumstances (which I wouldn't expect you to splash all over a public forum).

That said, ANZ are a decent option for refi's at the moment. They'll subsidies up to $1000 to offset the switching costs for each loan that you refinance from another lender. They are also offering some decent rate discounts depending on your total borrowings.

Cheers

Jamie

A subsidy of up to $1000 to offset switching costs charged by other financial institutions

Hi JPCCM

Out of curiosity, how much would it cost to render a basic 100m2 house? Would it include the colour?

Cheers

Jamie

allytac wrote:

HI,  Yvonne, very much looking foward to the next session, and meeting like minded investors.  Hope spring comes quickly in ACT for a variety of reasons

Nothing wrong with winter in Canberra I heard someone today say it was "invigorating"  –  that's one way to put it.

Cheers

Jamie

Hi Spandex

A newer property will generally have higher depreciation but there is also limited scope to add value through improvements. Also, if you're looking to develop on the block in the future, a new property won't be for you.

Cheers

Jamie

Totally agree and I've said it many times before – the tax benefits associated with property investing should not be the primary reason for investing.

Cheers

Jamie