They would bring the LVR up to 80%, so to 380K. So if you already owed 225K, you could access another 155K.

It is possible to bring the LVR up higher dependent on property and location and serviceability etc.

My first thought was- can you pull the old “the valuation (on the IP) came in low, so now I can only afford to pay $x” thus reducing the LVR and LMI payable, but you don’t really have time on your side for this…

You’re doing fine, you seem to have a good understanding of the finance structure

Sorry your acronyms are confusing me, I think you’re referring to your Principal Place of Residence (PPOR)?

I’m no tax expert, but I believe that since the expense will be incurred for the purpose of obtaining an income producing rental property, then yes, you would be able to claim it as a deduction over 5 years.

I've also found that the costs of establishing the structure (custodian trust) and obtaining the finance can be quite a high percentage of the purchase price for a cheaper property, ie. sub 200k.

If you live in the property that you buy, none of it’s expenses will be tax deductible.

Totally understand the networking and creating mutually beneficial relationships with others in the industry thing.

Yep, bought in Townsville and have a pretty good knowledge of the local market. Don't see a great deal of potential for short term growth at the moment as there is a lot of new stock  coming onto the market and developers seem to be…[Read more]

Haha fair call, I will take that one on the chin.

I have no plans to "do something about it" however, that's just who I am. I believe that knowing who you are and how you react in different situations is crucial to implementing a strategy that is suited to….you.

Regarding LVR's, it depends on your risk tolerance and strategy.
My strategy involves high LVR's and not paying down principal on loans, letting inflation do all the work for me. 
The rate at which the world's fiat currencies are being expanded is mind boggling…

Catalyst wrote:
A young meetup sounds great but in reality it may be the blind leading the blind.

Totally agree. 

I am also 26 and would consider myself to be knowledgable in not only property investment, but finance and economics in general.  I enjoy learning about this stuff, but to be honest, I would never show up to one of these events. I'm slightly paranoid, upon meeting someone my first thought is- what do they want from me, also what do I want from…[Read more]

Freckle wrote:
Population density is the determining factor. Cairns is small so cost effectiveness is nothing like bigger towns and cities.

EG: Pop density

Cairns 250.9/km² 

Newcastle 1103/km²

Melbourne 1567/km² 

Well spotted Freckle! 

Good cash flow.
Just remember even at 95% LVR with capitalised LMI (97% ish), you would require your 5% deposit plus 3-5% for stamp duty and legals. So I think your funds required is a little on the low side. 

If you've held the property more than 12 months you should be entitled to a 50% discount. 
No exemption for investment property unfortunately. 

Keep us updated

I have also been keenly looking at rural lifestyle blocks with 'shacks', however this is something I intend to keep at arms length from my investment affairs, 80% LVR etc. 
The idea is growing on me, somewhere to escape to, take the dirt bikes, fill the dam with red claw. 
Just haven't come to terms yet with taking on another liability, my…[Read more]

Freckle- What the heck is going on with the silver spot price? Can you see Ishares dumping big time and sub $20 prices? I'm waiting to pounce but these guys are making me nervous!

8.5% plus p&p ($6.60/month) 

I don't believe it's a major concern.

There are thousands of properties out there that contain asbestos.  
One of my properties has an asbestos roof and I've never had a drama, however insurers generally charge slightly higher premiums due to the high costs of asbestos removal/clean up.

The median values used to calculate these things are never an accurate measure of prices for the particular area.  I see it all the time.

I know for certain that for the median prices listed in this report, for the area I am familiar with, the 'median' property purchaser would struggle to buy a property at all, let alone one in a 'median'…[Read more]