If it were me I would go with your first suggestion, rent it out, access the equity to fund the deposit and costs and buy another investment property. Its the size of your asset that gives you the return and the best time to buy property is asap because the market constantly moves up over time (generally – depending on where you buy) . If you can get into the market now then don t hold back. By the way this is not advise. There are some great areas to invest in right now.

When land is subdivided a building envelope is placed as a restriction to the title of the land. A building envelope shows the outline of where buildings can be built, including the setbacks to the property boundaries, what the maximum area of a building footprint can be and can sometimes limit the number of storeys of a building or its total height. The only way to find out if a building envelope applies to a property is by getting a copy of the title to the land.

Hi Packer I definitely recommend I/O loans if you are building a portfolio, in fact I would even suggest having a PPR set up as I/O as well. Whats the point of paying principal now when at some stage later on you will sell one and pay out the debt entirely. Any spare funds you have you can and put into your offset ready for the next purchase.

The equity is simply the difference between the value of your overall property and debt. Paying into your offset is definitely a good idea to reduce the interest you pay and of course you have funds that you can draw down when buying another property. The equity will increase as the value of the property increases.

You will need funds to buy another property i.e. deposit and costs. You can use any spare funds you have in an offset account and/or you can set up another loan split on top of your existing loans to access the equity for use as funds to settle your next purchase.

You might want to consider keeping a safety buffer of funds available, say a spare $20k sitting in your offset.

I can send you a flow chart that will give you a visual perspective on the funding structure if you like, just shoot me an email if you would like this.

Hi Tanmay,

I am happy to send you Residex Suburb Reports which will give you past statistics as well as future growth projections for any suburb in Australia.

I can also send you CMA (Comparative Market Analysis) reports on any properties that you are considering buying, this will give you an indication on the property value as Real Estate Agent listing prices are not necessarily realistic.

Feel free to shoot me an email with location or property listing details.

I agree Orange has been interesting, 10 years ago you could buy a house for $150k and today the same property is sitting just under $300,000. The rent yield is also pretty attractive. In my opinion this area will perform well over the next 10 years. Shoot me an email if you want a full report.

These guys are looking for motivated sellers and most likely make an offer to you below market value. They on-sell to buyers at a higher price and smile at the difference.. regarding cost comparison you will get the right info if you just call them and ask them to send you their pricing. Then compare with your local real estate agent selling it for you.

Why sell? If you are struggling financially sure but if you want the cash to buy another property you can keep the one you have, access the equity through finance for a deposit and costs and buy another one. Let me know if you want the numbers crunched.

Any costs that are related to investment or business will be tax deductible – please talk to your accountant however as advise on tax is not my thing.

I am one for I/O loans if planning to build a portfolio and my argument is ‘why pay off the principle now when any extra funds can be put to increasing the size of your asset’ later on down the line you will most likely sell a property and pay out your portfolio debt entirely. I am also one for building wealth and if I had extra funds lying around I would be out there shopping around.

Looking at your position I would propose accessing equity from your existing property to fund the deposit and costs of a purchase so nothing out of pocket so to speak.

In my opinion If you ‘bust your gut’ to pay the mortgage off now you will never build wealth .. many experts suggest to use that money to increase your assets as Its the overall size of the asset that gives you the return on the investment. The bigger the portfolio the greater the compounding growth effect’.

Feel free to shoot me an email if you would like to discuss further, happy to help.

Without a doubt Gladstone right now. Shoot me an email and I will send you a full information package.. mainly due to the LNG contract. I could be a little biased but I am personally drawn to Brisbane and SEQ as well. Brisbane has had a bit of a flat period recently so good buying there at the moment. The future for SEQ looks promising from what I can see. Heres some recent snippets I received from a colleague.. http://www.wealthwithproperty.net/qld-info.html

I would like to also suggest you contact 3 local builders and ask them for their m2 price for constructing a high set. In fact you need to get them to come out to the block and eyeball it because if theres even a slight slope the builder will either cut the block and or add retaining walls to level it off and you need to factor that in. What seems a relatively flat block may have costs as such. Hope this helps.

Happy to send you a report on the Suburb growth potential and Local Government Area Statistics.