Yes P/I is correct for your home loan as the less you owe here the better as has no tax advantage, you can always re access the equity for investment purposes. I gather the LOC has been set up for the investment property; with out more info on that I would be guessing for its structure. Eg may have a small LOC to raise the cash for the I/P or the whole loan may be the LOC?

The idea of the LOC is you only pay interest on the outstanding balance and I/O which is what most investors look for. Not sure if you already have the offset available?

Wayne
Mortgage Adviser
Email [email protected]
http://www.alphamortgagesolutions.com.au
Refinace, Loan Consolidation, Owner Occupied or Investment Finance. Free Service we come to you!

Hi yes you pretty well have it right if all your costs such as mortgage rates etc over the year are less than the income it becomes positive cash flow. There are ways to help create this by applying to have an advance tax relief. You fill out the form to have less tax paid from your wages. Further you can claim depreciation in some instances which also increases the cash flow.

To find cash flow positive properties you would need to seek regional properties in mining towns etc. The risk is if the mining industry slows down may loose some capital growth. However a lot would argue this point as a lot of expectation in China maintaining the demand

Wayne
Mortgage Adviser
Email [email protected]
http://www.alphamortgagesolutions.com.au
Refinace, Loan Consolidation, Owner Occupied or Investment Finance. Free Service we come to you!

Both properties that I have purchased interstate before were done by flying up and viewing. This provides the ability to check the area out to support your research.

WIth todays cheap air fairs its worth a fly up to check it out even if fly back the same day as purpose is only to check it out. The realestate agent may even be nice enough to pick you up from the air port and run you around showing you point of interest. You can then go back on your own later in the day for your own look as they will be biast in what they show.

Remember they are working for the seller however if ask the right questions etc can provide a wealth of information. Eg they will have the stats of other properties in the area that have sold.. They may not wish to share them though

Wayne
Mortgage Adviser
Email [email protected]
http://www.alphamortgagesolutions.com.au
Refinace, Loan Consolidation, Owner Occupied or Investment Finance. Free Service we come to you!

and to all the in betweens

Wayne
Mortgage Adviser
Email [email protected]
http://www.alphamortgagesolutions.com.au
Refinace, Loan Consolidation, Owner Occupied or Investment Finance. Free Service we come to you!

it sounds very cheap for water front where is it? I guess if you see large capital gain comming and do not need the rent for servicing ability on your other projects then you seem to have done ok.

On the other hand if you are going to need the cash flow then maybe you have taken the wrong path. Could you not build on it and rent it? have you spoken with the local agents to see if this is feasable this would give you an option to capitalise on both if a possibility

Wayne
Mortgage Adviser
Email [email protected]
http://www.alphamortgagesolutions.com.au
Refinace, Loan Consolidation, Owner Occupied or Investment Finance. Free Service we come to you!

The best thing to do would be a google search for buyers agents that brings up plenty. THere is also Michael Yardley that visits this forum quite frequently his link you will find here
http://www.propertyupdate.com.au/

I guess it would be best to find one that is located in the area you are searching so that they are very familiar with the property value and have access to good sources

Wayne
Mortgage Adviser
Email [email protected]
http://www.alphamortgagesolutions.com.au
Refinace, Loan Consolidation, Owner Occupied or Investment Finance. Free Service we come to you!

Hi EMS
Congratulations on securing a good deal eg the land at such a good price. Before moving to Brisbane I had an investment property here and was in Adelaide really I may as well have been O/S as had nothing to do with it. Have a good property manager in place whom takes care of everything.

Even when they ring me occassionally with a little hick up I can trust them to get it repaired. Even though now live in Brisbane I am happy to just leave it with them. It keeps the emotion out of the picture anyway.

Ask locals that you know if they know someone they can refer as a good P.M. Visit a few and ask them all the questions and if they have any references to show you.

Yes make sure that you have a good loan structure I will be down the Gold Coast over the weekend by the looks feel free to contact me. Our service is free anyway, if you decide to sell congratulations on your makings and wish you all the best on your travel back

Wayne
Mortgage Adviser
Email [email protected]
http://www.alphamortgagesolutions.com.au
Refinace, Loan Consolidation, Owner Occupied or Investment Finance. Free Service we come to you!

The topic has been discussed in numerous other threads in recent days, mostly containing warnings and the potential pitfalls of such a loan.

Wayne Skewes
Mortgage Broker
Email [email protected]
http://www.eaussie.com.au/Mortgages/Aussie_Mortgage_Adviser.asp?ContentID=852280
Refinace, Loan Consolidation, Owner Occupied or Investment Finance. Free Service I come to you!

Being as you are purchasing the place as an investment property, you may still be eligable for the first home owners grant when purchase your owner occupied at a later time.

When calculating your expenses consider these
Body corp fees can be quite expensive
Council rates
Insurance
Rent loss insurance
Property management fees
Also pays to put aside a small kitty of money for repairs etc

Best to make a yearly figure of it all eg your costs and compare with the rental income. Speak with your accountant and you maybe entitled to some upfront tax relief and depreciation benefits

Wayne Skewes
Mortgage Broker
Email [email protected]
http://www.eaussie.com.au/Mortgages/Aussie_Mortgage_Adviser.asp?ContentID=852280
Refinace, Loan Consolidation, Owner Occupied or Investment Finance. Free Service I come to you!

Sounds a little odd to me, not sure of your appearance, but do you dress up a liitle eg like going for an interview? Some may be a bit concerned if you are a young single person, if so maybe turn up with a respectable older person as company. For all as I know you maybe turning up in a suite already it was just a couple of thoughts.

P.S. you dont have any pets do you? as this may be a block

Wayne Skewes
Mortgage Broker
Email [email protected]
http://www.eaussie.com.au/Mortgages/Aussie_Mortgage_Adviser.asp?ContentID=852280
Refinace, Loan Consolidation, Owner Occupied or Investment Finance. Free Service I come to you!