Yes. If this property is going to become an investment property in the future then it would be ideal to convert this loan to interest only now. Set up an offset account against the loan (if the lender allows) and deposit any savings in there. When you're ready to purchase your next PPOR, you can withdraw the money from your offset and use it towards your new PPOR purchase.

Cheers

Jamie

Hi Fword

Sorry, I missed this one before.

It depends on the value of the repair. If it's relatively minor and seems reasonable then I trust their judgement. If it's a major job (which I've been lucky to avoid so far) then I'd request some pics.

The best way to find a decent PM, in my opinion, if through referrals from other investors. As for Geelong, I don't know of anyone in that area. If you post a separate thread on it you might have some luck.

All the best

Jamie

Hi Doggity

With the LVR that low you'll be fine.

Cheers

Jamie

Hi Larry

I'm a bit greedy. I tend to look for something that will offer decent growth and a high enough yield to bring it close to cashflow neutral or positive. I spend quite a lot of time researching areas that I'm interested in. I also aim to purchase properties that I can add value to – usually through cosmetic renovations. The effects of adding value are twofold – I add some equity and can achieve a higher rent. I also allow tenants to own a "small" pet which also equates to higher rent (due to a lower supply of pet friendly rentals). Depreciation also helps with cashflow. I love tax return time  

Cheers

Jamie

Cheers

Jamie

Hi Priz

Welcome to the forum.

If you suspect that your property has increased in value, you may be able to tap into some of this new found equity and use it as a deposit towards your next purchase.

Basically, depending on which lender you are currently with, you may be able to "top-up" your current loan to 90% of  the properties value (which will incur some mortgage insurance). You could then use that "top-up" portion as a deposit and purchasing costs (stamp duty, legals, etc) on your next purchase.

If you're seriously considering turning your current property into an investment you should (if you haven't already) convert that loan to interest only and set up an offset account. You can then place the equivalent of the principle portion of your repayments (and any extra cash you may want to save) into your offset account. When it turns into an IP you can withdraw this money and use it towards your next property (your new principle place of residency). This effectively increases your tax effective debt whilst reducing your non-tax effective debt.

Hope that helps

Jamie

Hi Euro

I didn't pick up that it was an NRAS deal – thanks for pointing out.

Hi Larry

Welcome to the forum.

If the rent coming in exceeds the mortgage repayments (which are generally interest only on an investment property) plus holding costs (rates, management fees, etc) then the property is considered cashflow positive.

If the rent coming in is less then the mortgage repayments and holding costs then the property is cashflow negative. 

To answer your question about whether the rent from a tenant covers the loan repayments. If it were cashflow positive then yes, if it were casflow negative, then no.

Hope that helps

Jamie 

Hi Redcake

Welcome to the forum.

You've come to the right place. There's a wealth of info and plenty of experienced investors on here that are always willing to help.

Cheers

Jamie

Haha, nice. Do you mind if I use that one with my clients? Might splash it accross my website.

Hi Nurse

Not wanting so sound unhelpful but the good ANZ banker that you recommended in another post should be able to help you out here – that's what he or she are being paid for. If they're not answering your questions or you suspect that they're not structuring the deal correctly then it might be best to seek advice from an independent mortgage broker that understands investors and what it you're trying to achieve.