There are good and bad parts – I believe Ziegler fits in the latter.

You really have to get on the ground and suss the place out. There are pockets of good and bad (and they can be very close together).

Cheers

Jamie

Some banks are providing cash rebates to customers who refinance to them – you might be able to use this incentive to switch to a cheaper loan.

Have you had a depreciation schedule prepared for the property? Being relatively new, you would be able to claim quite a lot.

Cheers

Jamie

The major thing I’d be worried about is having troubles selling it later on. What happens when you want to liquidate down the track? Chances are you’ll be faced with the same issues that the current seller is probably experiencing. Also, the location may have an affect on the vacancy rate – one hour to drive up the road…..I wouldn’t be keen to live there (then again, we’re pretty spoilt in Canberra when it comes to traffic).

Cheers

Jamie

Hi Mr Libra

It all depends on your own risk profile and what you’re aiming to achieve.

Purchasing the property you mentioned will cause you to hit a serviceabiliy wall very quickly – limiting the ability to purchase additional properties in the future.

If you wanted to build a portfolio, that $150k could be spread over multiple properties achieving cash-flow neutral/positive results. Which means they won’t cost you too much (if anything to hold) which is an important factor when considering your income.

Cheers

Jamie

Excellent news Chris! Hope it’s the first of many.

Cheers

Jamie

This is one of the major reasons we self manage our IPs. I honestly didn’t think that the property manager was taking or returning all of the calls. They had problems finding a tenant at the start (sighting that there hadn’t been any interest). We took over management when the first lease was up and it hasn’t been vacant for one day (and there’s always been plenty of demand).

Cheers

Jamie

It will just revert back to variable. Chances are they’ll use the opportunity to try and increase your loan by sending out a letter offering you a LOC or something.

Cheers

Jamie

That’s a clever dog. The most profound thing my pugs muster up are grunts, snorts and farts.

Cheers

Jamie

Hi CB

So is the aim to purchase a new PPOR?

If so, I assume your new PPOR will be turned into an IP. Have you considered the rent that this property will achieve in your borrowing capacity?

Have you had your borrowing capacity calculated by only one lender? I’d speak with a decent broker about your options. It’s hard to make any comments based on the info above – a more in-depth analysis of your situation might reveal some more options.

Cheers

Jamie