Hi Savannah

Welcome to the forum.

Catalyst has answered your questions. If you’d like to get an idea of how much your property will cost to hold per week (and as a result, how much you’ll be able to claim) you can have a play around with this calculator – http://www.passgo.com.au/pass-go-investment-property-analysis-tool

Cheers

Jamie

Hi WB

What was the basis for you accountants recommendation for the interest in advance? There’s nothing wrong with employing this strategy – but it would be handy to understand why it was recommended in the first instance.

In regards to interest only – do you have a loan on your principle place of residency? If so, you should be either parking cash into an offset account attached to that loan or paying down the principle (rather than paying down an investment loan). It’s in your interest to maintain your tax deductible debt at its current level whilst paying down (or paying into an offset account) your non-deductible debt (your home loan).

Cheers

Jamie

Awesome stuff – just goes to show that a decent reno doesn’t need to cost an arm and a leg. You’ve also saved yourself quite a few dollars by carrying out the work yourself.

Best of luck with the second one.

Cheers

Jamie

Hi Lordopg

My understanding is that it’s similar to areas in Logan (such as Woodridge) when comparing it socioeconomic status. What do the numbers tell you? There’s nothing wrong with investing in these type of areas – as long as you’ve got risk mitigators in place. I’d start with a “good” property manager.

Cheers

Jamie

Nice work tvproperty – just shows it can be done.

What sort of renos did you carry out for the $10k?

Cheers

Jamie

The broker might not have a contact at St George – they’d have to be lining up a fair bit of business for the Dragon in order to gain one, otherwise they’d only have the broker help desk to contact.

I like Terry’s idea of ringing the valuers. How big is the town? Shouldn’t be too difficult to narrow it down in a smallish area.

Cheers

Jamie

Hi James

Welcome to the forum and congrats on the first IP.

Get in touch with an investment orientated broker. One that invests themselves and understands what you’re trying to achieve.

Cheers

Jamie

Hi PL

Yes, there’s investors out there who are doing quite well out of renovating properties in regional areas. I was speaking with an REA in Wagga not that long ago who mentioned that a few ppl are doing pretty well out of purchasing the run down ex govt stock, doing them up and either on selling or renting out at decent yields.

What’s going on with your caps lock button????

Cheers

Jamie

If going direct, make sure you deal with a branchie that understands what you’re trying to achieve and doesn’t stuff up your finance structure. I know it sounds like awfully biased advice coming from a mortgage broker but we’re constantly dealing with clients who have found themselves in this situation.

Cheers

Jamie

Have you been in sales before?

There are lenders that take commission into account when looking at borrowing capacity. However, a straight forward PAYG full time salary will cause less dramas when sourcing finance.

It’s a tough industry to be successful in so think carefully before making the plunge.

Cheers

Jamie