Thats good to hear. But do you think continuing interest rate rises will turn people away? Or do you think increasing LVR's to 95% will balance this out?ThanksWant it. Own it. Enjoy it. Achieve it.

What about a 95% lvr with the CBA to construct a townhouse in the backyard of an existing IP @ 90% lvr?

Adam,I have emailed you a couple of times. Im not sure where the 'Spencer Hotel' is?

I am an as fresh as they come with PI and feel hesitant to put my opinion in but I love the concept and spend hours each day researching, thinking about ideas for new investments and/or how I can further my portfolio. I bought a large block in New Norfolk (out of Hobart), a house in Central Frankston (VIC) that I'm subdividing and intend on build…[Read more]

HiCould anybody please explain the benefits of setting up a trust for PI? I have 2 IP's and plan to purchase many more (hopefully). I know Steve says it in his book but I never understood how the value of such a strategy.Thanks

Have a look at Frankston and the infrastructure taking place shortly. Alot of growth and on the beach. Depends on what your after. I have purchased in central Frankston – with a large block that is being subdivided currently and intentions to build a 3 bed 2 bath townhouse/unit. Will be +ve cf after completion.

Richard,Sounds pretty good. Would you say $160-$170k is a reasonable amount to construct a unit/townhouse in Melbourne. Hopefully I could service that.Still dont understand when equity can be used to help with additional properties.

Richard,Ok so I understand i would have to service the new loan for whatever amount. And may or may not be possible with my current salaray.Im still not sure how gaining the extra land in the backyard can be used to my  advantage. So your saying that the equity gained cant be used as cash. I still have to prove and be able to service the new loan…[Read more]

Even if it would then be cashflow positive after completion?Would it be possible to build a 3 bed 2 bath unit in a backyard if a prop was negatively geared $400p/m on a 46k salary + overtime work every week $600-800 p/m (payslips to prove)? How then can you use equity to purchase second properties or build in backyards? Sorry to sound like an a…[Read more]

Richard,I have been reading your posts in other threads – they are very helpful and provide great info. So basically your saying that even with equity gained, i still have to be able to service the full $200k loan? I cant use equity gained as a deposit therefore only needing to borrow less?Im a little confused as i have read some of the other t…[Read more]

Hi Guys,Im 21 and new to this thread/site and property investing. I have about $1650 in loan repayments monthly. I have an IP that is currently negatively geared at around $400 p/m. I purchased the prop to subdivide and build in the backyard. I'm not 100% sure how much it will cost to build a townhouse or unit (hopefully someone can help me with…[Read more]

Thanks quickchick!

There are so may little things involved and extra’s that pop up. Especially when your a total freshman.

The land in Tassie I am waiting for a while as the subdivision has to be timed. Waiting for access from the top of the block aswell as the bottom.

You made a good point, I will email the s/d company and ask them about gas,…[Read more]

Young investor – Do you mind explaining a little further 'offset accounts'? I am also new. I do have a block of land and then a house that I am doing a subdivision for, planning on constructing in the back yard which will then become positive cashflow. A bit of extra knowledge would help.Thanks

Hi Everyone, this is my first post. I have spent the last 2 days reading the whole thread. I plan on moving to regional areas after my first project listed below. Please take the time to have a read Im 21 and have been learning/researching/networking property as a whole for the last 6 months now. I have just finished Steve's book '0-130'. I think…[Read more]