Hi Everyone,

As in this case if the bank has valued the house less than the offer made…and you don't have enough finance to get the deail through. Do you still have to buy the property anyway or you can say i cant get the finance so i am backing out.. how does this work. Pleae advise

cheers,
Bharat.

Neil,

As wilrose said i too think the mortgage on your PPoR is too much..based on the fact that you are only one earning for the household do u have any plan in case anything goes wrong.. no man its not to scare you but something to think of for sure as they say that we should have approx 6 months of  repayments secured before we move onto IP JUST IN CASE…Rest if you guys can get pass emotional attachments to your house why not move to bit smaller house and get same value of loan and keep your lifestyle the way you are except your house you will live in… that way you can get few IP like may be think of moving to 450k-500k house and then buy 2 IP worth 200k each may be neg geared and then build on it. Some thoughts not an expert.

Bharat.

Hi,

Also please explain how the FHOG works if 2 couples like to get an investment property with there names on the title where 1 couple as got the FHOG and the 2nd couple didnt. Will they lose their FHOG.

Hi Joey,

I am also a newbie but somewhat in your situation as per the info you have provided i will think that this will be good option now other experience ppl on the forum will help here is my 2c worth,

As you have mentioned both of this that you will be paying upto 400/ week in rent and also considering to buy a property.

Now here is what i think,

if you will be paying rent based on the exact figure of 400/week you will be paying something $1733/mth in rent (now i guess that will be your suburb of best prefrence to live not sure)

But if you will buy your own property may be a little cheapie  you can consider upto 270k as that will equate to 1733/mth intereest only in repayments at 7.75% (used soem online calculators for this) and you will be paying 1750/mth plus any maintenance and council rates or you can reduce few thousands from purchase price to balance it out. you will get these benefits
1. You are not paying someone elses mortgage.

2. You can turn this property into IP later and buy your own Dream House with the equity etc.

3. You will get all your Govt grant which you are eligible for as my info is concerned you dont get that once you have a property on your name it may be IP correct me for this please if i am wrong.

4. You will get time to settle there with your family and know GC.

And one more thing i will do is that i will not use all my savings to Purchase the property outright as

you can use say upto 20% deposit to save LMI. get rest of on loan with an offset account and then transfer all your savings into that offset account and that way you will reduce the interest you pay on mortgage and still pay 1733/mth with principal reducing any way and also you got your all the savings on call if  you need it for anything and also when you go out to buy your home or may be another IP

And in this way you will save interest on your current property which you can transfer to IP later and also dont have to fork out TAX on your interest which you are earning on your money at the moment.

I hope it helps if you need any clarification please send a PM or post it here will reply back.

Cheers,
Bharat.

My appologies for so may similar replies somehow my computer was not behaving properly and it got so many replies there

Hi,

I am also new to PI, just another idea rather than putting all your money in one house, will you consider to break up your investment into 2-3 units as it will give you chances to find tenants easily and also will give u a chance for you investment to diversify and may help in getting more value later.Also that can be at different places rather than in one spot.
Hope it helps.
[suave3]

Hi,

I am also new to PI, just another idea rather than putting all your money in one house, will you consider to break up your investment into 2-3 units as it will give you chances to find tenants easily and also will give u a chance for you investment to diversify and may help in getting more value later.Also that can be at different places rather than in one spot.
Hope it helps.[biggrin]

Hi,

I am also new to PI, just another idea rather than putting all your money in one house, will you consider to break up your investment into 2-3 units as it will give you chances to find tenants easily and also will give u a chance for you investment to diversify and may help in getting more value later.Also that can be at different places rather than in one spot.
Hope it helps.[biggrin]

Thanks for the information R& L with your questions i have learned that we can use the other costs as depreciation and it can work in our favour.
[party]

Hi,

i am also new to PI but what i have learnt so far is it depends on personal circumstances, time and money (equity) you have and last but not least your stretegy what you want to achieve and the timeframe you have set yourself for that. it needs to be well thought before jumping into the PI and determine what are your strenghts and then use them to max you can.

i hope it helps.
[specool]