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  • Profile photo of MagnetMagnet
    Member
    @magnet
    Join Date: 2003
    Post Count: 6

    Hi Hugh,

    Terryw has got it right on the money.

    Another way to think about it is "What is the purpose of the money I'm borrowing". If you were borrowing money to invest, then the interest would be tax deductible. However, you are borrowing money for PPoR so it's not tax deductible.

    Hope that helps.

    Cheers,

    Magnet

    Profile photo of MagnetMagnet
    Member
    @magnet
    Join Date: 2003
    Post Count: 6

    Hi Shel,

    It all comes down to numbers and your personal preference. There are 3 options from what I can see

    1. Keep your investment property – refinance to tap into the equity and buy your own home. All depends on whether you can afford to do that. Do the numbers.
    2. Rent in Brisbane and keep your investment property – especially if you believe you are going to get good growth with your investment property. Plus renting could be cheaper
    3. Sell your investment property, realise your gain (and give up any future capital gain) and buy your own home.

    It all comes down to your cash flow – your income and your expenses. You seem to have a pretty good handle on that so it's a case of balancing the emotional decision of wanting your own home now vs the prospect of doing what will give you the best capital growth for the future.

    Cheers,

    Magnet

    Profile photo of MagnetMagnet
    Member
    @magnet
    Join Date: 2003
    Post Count: 6

    Hi, I often buy properties site unseen. And sometimes that has worked, sometimes it hasn't. What I would recommend is as per what TerryW said, try and get someone who you know to drive around and check out the property.

    We were recently looking at buying one and all the reports looked good. Except when we had a friend go check it out, we found out that the property overlooked a very ugly shed, which would have hampered rental ability. So we pulled the plug.

    If you can't get someone to go and visit, perhaps get the agent to send you some photos of the external surroundings. And always get the relevant reports done. It's too easy to go wrong otherwise.

    Hope that helps

    Profile photo of MagnetMagnet
    Member
    @magnet
    Join Date: 2003
    Post Count: 6

    Hello

    Perhaps my personal experience might assist – I started seriously investing in positive cashflow property about 14 months ago and I have completed 12 deals in that time. They have either been Lease Options and Wraps and the biggest (possibly the most painful) learning experience was dealing with the tenants of the Lease Option properties. I know what it can take to manage properties, particularly if the tenant is a troublesome one.

    Comments about PMs having it easy at times might be true if the tenant is great, which most of mine have been. But if I had to do it again, I’d get a PM to take care of, at the very least, my troublesome tenants.

    As has been correctly stated earlier, time is our most important commodity and in my case, I have spent more time during the last 3 months chasing up payments rather than growing my business and doing more deals.

    Perhaps food for thought?

    Regards,

    Magnet

    PS: Does anyone know a good property manager in the Cessnock / Hunter area of NSW?

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