Agree with Richard – I always liked the quote "If you're good enough, you're old enough."

Hi Ajay

I haven't been actively searching CF+ properties in NSW lately but I know Wagga has some decent yields – there's a few suburbs (Ashmont, Tolland, ect) that have ex housing commission properties that are auctioned off by LJ Hooker. The purchase price is relatively cheap (anywhere from $100k – $150k) and after some work they can achieve up to $250 p.w rent.

Hopefully, when the housing comission stock starts to run dry, the capital growth in these areas will pick up.

Tenant quality is important in these areas – therefore, having a top notch property manager is highy important.

This is just one area of NSW, I'm sure others will be able to provide input into other areas.

Hi Dreamer

The guys above have given some great advice.

I'll also add one thing. It's important to not lose crediblity with the agent you're dealing with. From my experience, the quickest way to lose it is by placing a ridiculously low-ball offer. Not always, but most of the time they'll just view you as a tyre kicker.

That said, I'd never offer asking price (and I'd do my own due dilligence to ensure that asking price is somewhere near what the property is actually worth). When placing my offer, I take into consideration the vendors motivation for selling (as JacM mentioned above) and provide evidence (such as recent sales in the area) which help justify the offer that I've come up with.

Cheers

Jamie

Hi Joe

It might be easier trying to get in with one of the smaller agencies as opposed to one of the larger franchises. I'd try calling some of the smaller players and seeing what they can offer you.

Cheers

Jamie

I never had so much disposable income in my life! Living at home, mooching of the folks – free food, accomodation. Pity I spent all my cash on all the wrong things. I worked in a sports club pouring beers during my 4 years of uni – the pay was pretty good at the time.

What can you do to prepare? Read, read, read – regularly read and contribute to forums like these – borrow all the investment books in your local library. You could start saving for a deposit now. If you're living at home, you could work part-time and start saving some cash. You might be surpised at how much you could put away over the next three years. If you're living away from home to study then scratch that idea.

Also, you could always scrap uni. Probably not the most politcally correct response but it's another option.

It sounds like good news but the banks will recoup this in other ways – which might be via higher rates and app fees.
 
Also, if you're LVR is above 80%. switching lenders may not be of much benefit – because you'll probably have to fork out for LMI again

Hi Bigdalla

With getting your own credit licence, I'm pretty sure your two years mentoring would have to be completed by June 2012 (therefore you would have to of started your mentoring program in June 2010). I could be wrong but I'm fairly sure this is the case. You could still be a credit rep of a licence holder though.

While the comission splits between yourself and your mentor are important, even more important is the quality of your mentor – choose wisely because this is likely to be the most important decision you make when entering the industry.

Hi Wickl

A good broker that deals with investors will understand investement strategies and will structure your finances correctly to help build your portfolio.

There are a few regular posters in this forum that offer these services. I'm not sure if any are based in Sydney. However, to quote someone else on the forum – these days location is not as important as finding a mortgage broker who understands your needs.

By using phone, email and fax it's quite easy to get things done – irrespective of where the client and broker are located.

Cheers

Jamie

Hey Nicole

With the interest only loan. It gives you greater flexibility – basically, think of the offset as being the place where you park all the principle repayments. If you have a $100k loan, and place $10k in your offset, you're effectively paying interest on $90k ($100k loan minus the $10k in the offset). However, if you want to take that $10k out (ie. because another investment deal has come about) – there's no dramas, it's your cash – no need to redraw, access equity, etc. Just take it out and the loan goes back up to $100k. In the mean time you would have benefited from lower repayments.

Secondly, an interest only loan on an investment property has tax advantages. Particularly, if you have a non-deductible mortgage (ie. the family home). You're better of making extra repayments into an offset attached to your non-deductible mortgage (family home) while keeping your deductible debt at it's current level (ie. not paying it down).

The general advice I give clients with multiple properties is to set up all loans as interest only (investments and home) and place an offset account against the home loan (PPOR). Continue to make regular repayments into the offset (at least the equivalent of what the principle would have been)  – the offset is also a great place to park any spare cash.

Hope that makes sense.

Jamie

Just call me Tiger…. without the 8 mistresses