Hi There, the vacancy rate is on the higher side. Maybe you could do further research to work out which type of houses and areas are attracting long term renters, etc. You can do this by asking the agents. Try 2 or 3 different agencies and this should give you a good indication. You could also “beat” that average by buying a property that is already tenanted however has got potential for making the tenant happier (i.e Split system, carport, etc).

Happy Investing

Hi Guys, my bad, sorry, Richard is correct, 60% LVR on Lo-Docs under a trust structure for ANZ.  I got mixed up as the last two I have "written" using ANZ were full docs.

However St George does 80% LVR under trust structure for lo-docs.  Dave,  around 8.6% at the moment , not the cheapest one for sure.

Happy Investing

Hi Dave, sure mate, ANZ, St George just to name a couple. Lo-Docs, 80% LVR, trust structures, no worries.  

Happy to help, please feel free to contact me if you have any further questions, etc..

Regards

Hi there, based on your numbers you have around $60K in equity (80% LVR) that you could use to purchase another IP. You have not mentioned if you have credit card debt, car repayments, etc, etc, however with an income of $120K you should be able to borrow to purchase another property.

$60K is 20% of $300K for example…

Happy Investing

Here is what I think:

1. The property is not really positive cash flow as the interest charged is still the entire amount – you have just avoided paying some of it in the first few years. Cash flow is determined by income, plus tax breaks, less expenses. Your 'expenses' are still the full amount of the interest charged. You are just deferring payment of it.

2. Reliable information about the tax deductibility of capitalised interest on an investment loan is a grey area. If you are using one of these loans, there is a high chance that you will not be allowed to claim the increased interest as a tax deduction in future years.

3. Most importantly, the scheme relies on rising markets. You cannot predict future growth. If you don't get capital growth, you will end up with a loan higher than the value of property. In short, you will have dug yourself into a hole of negative equity.

Happy Investing

The US is going to continue to print some more money to help with the declining property market and the also “declining” consumer sentiment. So the $US is going to to be worth less, at least in the short term. I suspect professional traders will continue to make a killing on silver and gold shares.

Happy Investing

Hi there, Robyn Grinter, from Gems Properties, is the ‘equivalent” to Steve McKnight over in New Zealand, 303 properties in 3 years, last time I spoke to her, which was last week.  A great property investor and also a personal friend and mentor. She runs property investing courses in New Zealand, etc, send her an e-mail: [email protected]  

Keep that energy up

HI Shaun

It seems your bank no longer wants to work with you. Time to look form those that do. Very likely the person that told you to sit tight and do nothing has no property and can only dream about the returns you are getting from your properties.  Do not let them slow you down.

Keep it up mate, the returns you are getting are awesome,

Happy Investing

Hi There,

–         If you sell, do you have a better place/investment where to park your profit?

–         Depending on your financial “position” you could use equity from this investment to buy another property.

How’s the cash flow from this property? Is it “cramping” your style or can you sleep at night no worries?

I don’t know Kevin Turner, however I do know that areas with all the fundamentals in place hold value better. The mythical 10% growth per year quoted by the gurus has hurt a lot of people. It AVERAGES 10%, over the long term, however it doesn’t grow 10% each year. Growth in Brisbane during 06 was around the 4%.

Take Sydney for example, the 10% “rule” is not applying… at least in most areas. This is a good thing though.

Just some thoughts

Happy Investing