Yep, API is a good read. A few forum members have graced its pages.

Another excellent read is the Herron Todd White month in review – here’s the latest edition http://www.htw.com.au/Month_in_Review/Month-In-Review-July-2011.pdf

Cheers

Jamie

Derek makes a good point, it's important to read widely – each author will have a different point of view from the next. I'd also check out some Margaret Lomas books as well. I think Nathan Birch will have a book out soon as well – that will be one to add to the list.

Cheers

Jamie

Hi slowachiever

We have a number of handy IP related research links on our website – http://www.passgo.com.au/property-data-websites

Hope that helps.

Jamie

You're welcome Chris – any time.

With those books, scope out ebay and your local library. No point paying retail when you've got a deposit to save for

Cheers

Jamie

Yep good point. It's not just the sales costs that you need to incur – the purchasing costs can also be a killer.

Cheers

Jamie

Chris89 wrote:

Thankyou for your time Jamie, much appreciated . I have a few more questions if thats ok?

No worries at all.

I have a preference towards IO with an offset attached. Any spare savings gets put into the offset account which lowers the repayments. If you ever decide to move out of this property and convert it into an investment, you can withdraw the money from your offset, which boosts your loan back to it's original level – thereby maximising tax benefits.

Personally (and I stress – this is my personal opinion), I'd aim to be more aggressive. Look at buying something that you can add value to. This way, you create equity. This newly created equity can be accessed to purchase your first investment property. This way you don't have to wait a few years for the property to increase in value. However, your income at the time will play a major role in whether the bank will actually lend you money for your first investment.

The minimum deposit is 5% plus purchasing costs (keeping in mind that you may be able to take advantage of stamp duty concessions dependent on the state you live. You'll also receive the $7k FHOG). In terms of how much rent you require to make it neutral/positive, try this spreadsheet – http://www.passgo.com.au/pass-go-investment-property-analysis-tool

Investing purely to minimise tax is not a good strategy. Think about it – you have to make a loss in order to reduce your taxable income. That said, there is absolutely nothing wrong with negatively geared properties providing you suspect that the capital growth they achieve outweighs the ongoing costs of holding the property.

Hi Chris, welcome to the forum.

There's no wrong or right – it's a matter of different stokes for different folks. As a very generalised comment, negatively geared properties (which are generally in larger, metro settings) cost you money to hold but generally experience decent capital growth. On the flip side, positively geared properties (which are generally on the fringes of metro areas or within regional areas) add to your income but generally experience less capital growth. Please note – this is a huge generalisation and there are always exceptions to the rule.

For your first home, you could get away with a lower deposit. Depending on your state, there might be stamp duty concessions that make the purchase a lot cheaper. A 95% lend with mortgage insurance added on top means you only need a $15k deposit plus costs (remember, you'll also be eligible for the $7k FHOG as well).

A couple of negatively geared properties will reduce your borrowing capacity. On your income, I'd be aiming for something close to neutrally/positively geared. 

As above, negatively geared properties on your income will reduce your borrowing capacity. I wouldn't have thought that this strategy would be best for you.

Good books have been written by Lomas, Somers, Yardney, De Roos and Fitzgerald to name a few. I wouldn't bother with becoming an expert at everything (I'm talking about the REA and broking education) – instead, surround yourself with a team of professionals that are experts in their field.

Chris89 wrote:

I hope I haven't bored you with all my questions, and my apologies at my very very basic understanding of the game. I would love for anyone to point me in the right direction

Not at all – and I hope you take the knowledge you gain and act upon it. All the best with the investing

Cheers

Jamie

Hmmm……I can't see these lazy buggers gaurding anything. Might have to stick with appreciating instead.

Cheers

Jamie

Brilliant! Mine were bloody expensive and are still relatively young…should be able to claim quite a bit then

Cheers

Jamie