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  • Profile photo of nelgstanelgsta
    Member
    @nelgsta
    Join Date: 2011
    Post Count: 4
    January 27, 2011 - 10:31 pm

    Thanks for the tips guys – are there any benefits to waiting and paying off the mortgage in full? Before diving into investments and leverage?

    Profile photo of nelgstanelgsta
    Member
    @nelgsta
    Join Date: 2011
    Post Count: 4
    January 27, 2011 - 10:26 am
    Catalyst wrote:
    Firstly if you are thinking about keeping it as an investment STOP paying off the loan. Put the money in an offset account so you can withdraw it to buy the new place.

    Thanks for the reply – when you say offset account – the (BankWest) home loan we have allows us to move the money in and out with no penalty (just a $500 minimum transaction). So we can transfer between savings and home loan accounts.

    Can you guys spell out how to leverage for me? How much equity would we need in the loan before we can lease out the unit and buy a new place? How does this work?

    Cheers :)

    Profile photo of nelgstanelgsta
    Member
    @nelgsta
    Join Date: 2011
    Post Count: 4
    January 27, 2011 - 5:17 am
    luke86 wrote:
    He suggests that there is a looming oversupply of inner city apartments in Melbourne and Sydney.

    I personalle prefer houses on decent blocks of land in the inner to middle ring suburbs due to the rising value of the land component, a shortage of new stock on the market in these areas and the ability to create extra value (by renovating, subdividing etc) these type of properties compared to inner city apartments. But that's just my preference!!!

    Thanks for the post Luke – we bought in the CBD for the lifestyle and to be walking distance to work. I disagree with Michael Yarneys doomsday view of city apartments – this view has been recycled over the years and in the medium to long term, has always proven overstated.

    I think if you read widely enough, there are a number of experts and gurus making all sorts of predictions, but all so far ahead of time that they're never really held to account!

    In terms of our spot, we found a great location – unobstructed (and never to be built out) views of the Yarra River, one minute walk to Crown and Southbank and five minutes to South Melbourne.

    What I'm hoping someone can help with is some advice about a medium to long term strategy – notwithstanding that there are gloomy forecasts for Melbourne's apartment market.

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