Hi brmiau,

Be very careful and ask important questions before proceeding. First question would be the one highlighted by Benny, ask if your MB is planning to cross-securitise your loans.

You could potentially unlock $63,000 of equity from your own house which will be set up as a separate loan split from your home loan.
And then apply for another loan for your investment property. By doing it this way, you will not cross collaterise your house with your IP and then get max tax benefits due to the splits. Your accountant can work on your returns efficiently too with this as they are all separated.

Regarding your plan on paying off your IP in 20 years, this is really not a good option for you as you will be reducing your tax deductible debt. Alternatively, you can set up an offset account and direct all income to that offset account which is linked to your home loan as this debt is non tax deductible. Parking it in an offset account will also give you access to this funds quickly for succeeding investment property purchase.

Cheers!

Wiwin,

Median price and average market value is not the same. Be careful not to get confused there.
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Cheers!

Hi Kurtuk,

Just let us know how you go. If you have anymore questions don’t hesitate to come back here. Thanks!

Woops! Sorry Terry.

Kurtuk,

Apologies for the incorrect info there. All I’m trying to say is that Terry is awesome! :D

Cheers!

Hi Stera,

No one can really tell when would be the “right time” to sell as there really is no guideline stating that your decision of selling now is wrong and selling in 12 months time is right. This is due to the reason that no one can predict the future. You can however refer to historical data and see the trend of the area where your property is located. This can tell you if the area has gone passed its peak and is now in the correction period. Or has just passed the low point and now in an upward swing. Research the current market status of your area, check auction results, number of properties sold over a certain period etc. Doing your research will help you decide when is the “right time” for you to sell. Determining how much profit you want in return can help with your decision making as well.

Thanks for the info Scott No Mates, I was keeping an eye on this thread as well as I wanted to know the legislation or policies for this type of scenario.

* 4 shares and each share puts in ‘X amount’ for deposit,(3 singles and 1 couple)*

This looks easy on paper. But wait till you enter a problem where one can’t repay his part for whatever reason, or 2 members wants out of the deal, etc etc. If you still want to proceed, contracts needs to be signed and every responsibility and “what-if” scenarios needs to be discussed before hand. A good lawyer is a must in this type of situation. A good legal advice at the start is your top priority.

Not a really good idea if you really are serious about property investing. Unless you have an established network and a really good relationship with the right people, then just invest here in Australia. Better returns and safer (not referring to investing, but a life and death type of safe) This may sound extreme but you can get killed easily over there if you mess up with someone with connections to politicians.

Benny wrote:

That is one amount that you will have paid for in the price, for sure.

Exactly!

Rental guarantee = alarm bells (very loud alarm bells)

Caveat Emptor.

Cheers!

Hi buddy fox,

Please tell us your two IPs are not crossed? If it is, you need to get this fixed ASAP before doing anything else.
20k savings is not enough for your target price range. Why don’t you want to use equity in your IPs?
The information provided is very limited for us to provide you with a much more accurate answer.

I would focus on fixing the two x-colled properties first (if they are crossed) and at the same time structure your finances to your benefit. Using cash on your next purchase won’t give you maximum tax advantage too. Paying it to your current PPOR loan (if you have one) and then redrawing it again will get u great IP tax benefit due to increasing your tax deductible IP debt.