My take is if you only have 1-2, then you may be inclined to do so yourself, but if you have a portfolio of say, 15-20, then it becomes a living nightmare for you do micro-manage everything.

Whether it is tax deducible or not then becomes an independent topic.

I think the answer to that also depends on circumstances too. Some PMs are great with basic buy to let properties, but they may not be the best when it comes to managing multi-let properties (duplex, 4-plex, etc… though not that multi-let are all that common in Australia).

I think a good idea when contacting such PMs are:

1. Give them a map of…[Read more]

What type of properties are them mainly?

Did a quick search on realestates, seems the cheap ones are mostly properties with 200-400sqm land, and the ones that are bigger than 500-600sqm land are getting close to 700K.

OK, now that we have established this fact, just wondering if there is a way for me to find those information (without have to pay every time I want to find such information)?

I tried the URL Sarah suggested, however, problem with that is it only works against those they are currently listed, rather than those that are already sold. Still useful,…[Read more]

Doesn’t seem to be anything “new” though.. they are banning foreign investors from buying existing properties, but the ban does not stop them from buying new ones.

Australia did exactly the same thing years ago and that didn’t stop the price from skyrocketing.

I don’t actually mind people suggesting LOC is a more preferred solution.

But what I have a very big problem with is when being asked to compare different products, that particular broker is un-willing to explain the difference, unwilling to provide the pros and cons of both options and the rationals behind why he thinks LOC is the better…[Read more]

Yes, but if the strategy is trading properties, then how quickly the properties are sold becomes a good indicator, because the idea is a 3 step process:

1. Buy property under market value
2. Do some refurbishment (cosmetic only, nothing structural)
3. Quickly sell it

So in this case, then you definitely do not want to buy a property in an area…[Read more]

This sounds a bit counter intuitive.

Those people who are financially free don’t have jobs. They have good investment incomes… so how are they getting loans approved left and right without jobs and payslips?

Hi Benny

Thanks for the information in this regard.

Truth be told, I will never want to have a single loan with multiple purpose (I stated this quite clearly). So now it comes down to whether or not I want to have multiple offset accounts, each offset account linked to a different loan, and those offset are independent of each other.

Seems Line…[Read more]

Thanks Terry, your answers were helpful, much appreciated.

My previous post wasn’t directed at you.

OK, that’s fine. Thanks for all the advice.

But I have to say when I originally asked those questions, I was more thinking if someone can give some general information.

For example, using “what’s the pros and cons of H&L package”, I would expect the answer to be “while in some exceptional circumstances, H&L package appreciate, but under most…[Read more]

Yea.. that’s exactly what I was trying to say all along

A single loan with multiple purposes, it gets messy.

Hi Terry

OK, so if both Line of Credit and Offset options are bad ideas (LOC being expensive in terms of interest rates and Offset being muddy with if interest is tax deducible), what would be a 3rd alternative based on your experience in that area?

Hi Jaxon

In that case, are you able to advise how do I keep track of which invest against the combined total of the interest is being charged?

Say, the original 400K gets charged 2000 per month Interest (Interest Only)
Once I use that 80K, the interest becomes 2500 per month. (Interest Only)

The numbers are not accurate, but for illustration…[Read more]

Hi Jaxon

In that case, are you able to advise how do I keep track of which invest against the combined total of the interest is being charged?

Say, the original 400K gets charged 2000 per month Interest (Interest Only)
Once I use that 80K, the interest becomes 2500 per month. (Interest Only)

The numbers are not accurate, but for illustration…[Read more]

I didn’t borrow any money yet, I am just asking and trying to understand the different options here.

I apologize if I sound like I am asking stupid questions, but it is something I have never done before and I am trying to understand based on the information I read.

In the example I gave, that 80K I put in offset are borrowed money. As in, it is…[Read more]

Hi Terry

Understand where you are coming from. My concern however is I don’t know when the invest will happen.

For example:

I want to buy a new investment property and I really don’t know when I will find the right one. I might not find the right one for a while or I might purely by chance stumble across one that I really like, and when I do…[Read more]