what is the value of the property?

Zeallous

It’s great that you’re so driven to start building your property empire. Well done! However may I be blunt;

– you mention that your cashflow is break-even and that you hate working for someone else. bad attitude. Without a regular income from a job working for `someone else’ the banks won’t touch you with a 10ft barge pole. And given…[Read more]

If you will occupy this home, then it would be better to go with a Principal & Interest loan structure. if you finance $235000 your monthly loan payments will be around $1644 based on a rate of 6.89%.

Highly recommend going to http://www.jaffasoft.com which will give you all the above info.

Eric

thanks for the response.

yes, i should have noted on the original post that i wanted to do both. and as we are intending to stay here for the foreseeable future, paying down the loan makes sense.

thanks again,

Eric

just as soon as i can build more equity in my ppor, i will be utilising a loc to finance the purchase of additional ip’s. a good friend of mine has done this with great success. i’m not sure though if having a loc is for everyone. i imagine it would be pretty easy to get into strife if you’re the type to spend cash on consumer items etc. a loc is…[Read more]

hi ije,

it really depends on where you want to invest. you will definitely need more than $20k to invest in sydney, unless you look at older style apartments in sydney’s west????

as far as deductibility of your rent payment, unless you run a business from there (you say you’re a salary earner) your rent payments are definitely not deductible.

eric

like any investment that one makes, you need to do significant research and due diligence to find out the type of things you want to know. as far as which area, you ain’t really going to get those type of answers here. where you buy is really a question of affordability etc. why not start with the area where you are currently living?? not a bad…[Read more]

hi lisa,

Welcome to the forum.

Following on from Derek’s reply, i believe you really to need to consider each property on its own merits, be it a unit or a house. I’d be cautious about purchasing an old-ish unit given the inevitable higher maintenance costs. And this is where it gets tricky. Body corporate’s can impose special levies over and…[Read more]

just a thought; what does dad think of this plan???????

hi hotrod

i don’t think you necessarily need to inspect a property to buy value. the golden rule i employ is to spend the couple of hundred dollars and get the property inspected before purchasing. like others that have growing portfolio’s in virtually every corner of the country, with my other business commitments i could not manage to visit…[Read more]

like redwing, i would also recommend the jaffasoft website. very useful.

eric

you mean like the matrix???????? so thats what its all about. [weird] if only it were so easy though nehal, you know looking at blank wall. frankly i think something is not right here when a forum on property investment degenerates into some psycho mumbo jumbo……..

nehal, i’ve read a couple of your questions in the forums so far, and have to say that you will NOT get quality answers with the way your questions are being put to the forum. While I and many others on the forums congratulate your keen interest in property investment, I would strongly suggest speaking with a parent or other adult first and maybe…[Read more]

yes [saywhat]

hi jen,

i recently purchased an ip with only 5%. i may be mistaken but i don’t think there is any rule that a 10% deposit is required. as i said, with the property just purchased the re agent was also asking for 10%, however i said that i would give only 5% as funds were tied up elsewhere at the time. he accepted. i would certainly recommend that…[Read more]

a quick calc. tells me that if you convert you loan to i/o you will gross around $40 p/w. obviously this doesnt take into consideration maintenance costs, insurance etc. i think given the other costs, you still should be in positive territory. eric

i guess most here would be sympathetic here given this is your first post and all (welcome by the way), but this is such a broad question that i dont think you’ll get the feedback that you really want or need. try to give a detailed description to your situation. you will find here that most of us are only too obliging to offer free detailed…[Read more]

i dare say that you will probably be inundated with responses to your query.

why dont you keep the 1st property and use the ample equity that you have to buy the 2nd property?? with your ambitious plans to quit work at 40 to embark on a ft career in property investment, you will need all the property’s you can get. furthermore, bear in mind that…[Read more]

i too would be looking at releasing your mum as guarantor. although if shes happy to support your property investment goals and aspirations then your option 3 is probably not a bad strategy. i know that everyone is different, but your mum has obviously been kind enough to help you in the start. maybe now she wants her equity back to do other…[Read more]

a property is cashflow positive when the incomings exceed the outgoings (interest cost, maintenance, strata etc.etc.). it really has nothing to do with what level of deposit you have. you make no mention of your current asset situation so if you dont have any equity in a property already you will need to find 20% for a property anyway, unless you…[Read more]