You can loose money on anything under the right circumstance, even banks e.g if the banks didnt get a bailout in 08

there are pros and cons to each avenue, pick what you understand and more importantly, under the risks.

personally, bank acc is good till you build equity to move beyond that.

SWS did you read Nathan’s second comment, its CF+ 2200PA..Now this may be a lie and seems like it could be, or he has a magical accountant (which could be very true)

but depending on your point in your financial strategy this is a great pick up. Yes there are many reasons I personally would not buy it in the next 5 years, but for someone at that stage, its a great pick up.

Now if you look at that property today I am sure its valued 150k plus

now this is the last and most important point, how much would it cost to build it! and whats the desire for it.

For e.g. if I can buy a house that cost 1.5mil to build and I buy it for 400k then thats amazing unless it never can get rent.
but if I buy a 1.5mil property for 600k and it rents for 1200 a week every day of the year, then I am laughing.

Ok well maybe I am wrong, I just wonder if there is grounds for them to recoup payments or if this is a legal loophole, I mean the fact they charge more for investment because they can isn’t fair or ethical in my books, but if there is a clause in a contract that puts you at risk for reimbursement from the lendee than I would not risk it personally. but Great to hear its working for you blackhotel. Happy someone is getting a sneaky on the banks haha

No idea, maybe not, I mean a few of the people on this thread have gone on to fly pass needing or getting fulfilment from this site, but I hope I get replies as they are very versed in success through RE

Good Read,

Firstly Jack/freckle I think the one thing I have to ask is, what is your goal with this conversation? I mean if you feel you’ve one the argument, you have likely lost getting your point across, but in this case Engelo seems very very reasonable. you show little regard for others opinions and seem a little emotional in responses although its clear you study and are smart, I dont know if this is fair to use that to belittle?

Engelo Love to hear were you are now, and all the recent changes?

Its funny reading this, so many points of views shadowed by really long points that seem repugnant and futile, although gold is in dirt I guess.

Also Love to hear your profitable ventures Freckle, or how you minised bad situations! sounds like you hold a wealth of experience and learnt a lot more lessons than myself.

Kind regards

Jaxon Avery

Well its simple.

If the loan is structured as a owner occupied loan and that’s not your current and legal address they have something to argue in court.

Propertyboy your bringing up a legal issue, better off asking or speaking to a lawyer for exact information and even then it really comes down to the recent court case and what the past has to say in these cases.

Legality is complex and simple, best get real advice as to if this went sour.

Ok David,

Well I think that is very possible and realistic (not to say a bigger goal wouldnt be)

The problem I think many people run into with similar goals to you, myself included, is lack of instant equity building, buying below market value isnt enough to then within 3 months revalue and have instant equity to reuse (generally) unless your value adding.

so for e.g. lets say 7 years for your goal from today.

you currently have one property (call it P1)
p1 = 350k value, 170k debt Income 50k a year (save 20k a year)

buy p2 for 230k spend 20k and three months later its valued at 300k

So thats
p1 350k
p2 300k
= 650k over 420k debt
now you use that to purchase another property shortly after
buying p3 for 250k spend 50k on fully redoing the whole house
and now worth 410k and your other properties both went up 10k each
thats
p1 360k
p2 310k
p3 410k
= 1070k over 720k and lets say thats within a year (yes you spend a bit of time building that original equity (years)
but if you bought correctly that could already be around 70-150 per property in return so already over $300 per week in income of the property and all properties could be structured P and I so they are reducing the loan amount.

Now this is a very rough example but I hope it shows a glimer of the breakdown.

There are deals far better than the above out there as well.

Just need to be able to source them and understand the risks.

Logan has had some steal prices go through

and albury has as well, both positive cash and very likely growth over the next 5 years.