I remember 105% mortgages several years back. If I remember correctly there interest rates are significantly higher. I also found out today that you will pay ~3k extra on mi if you cap it.

I have read a recent article explaining how people who purchase a PPOR and then transfer it to an IP, are to some extent taking advantage of a small loop hole within the system. Its designed  for people who need to move for work related purposes etc.
I am unsure how they can regulate this, or if it's regulated at all, but looks like a good strategy if you can get some good tax breaks from it.
Remember the building has to be newer than 1985 to claim depreciation from the building, which i would imagine takes up a decent portion of what you can claim, im certainly no expert on the matter, other than that it would just be the appliances and the tax breaks from negative gearing, if it is.
I would be looking for a newer building, and nothing built prior to 1985 to get the most out of it.
I also dont see why you cant just redraw the principle from a P&I loan every few months, and use those funds to renovate, which can then be claimed against depreciation for tax. (carpet, kitchen etc).
Please feel free to correct anything i have mentioned. I am learning  a lot as i go here.
this website is great.

Correct me if im wrong. The big 4 banks are really the only people in control of where property values are heading? I feel there is some form of control that needs to be regulated in the housing market. It;s absurd to think property can just keep going up.

IMO, i think banks will start to lower their valuations with the anticipation of interest rate rises.
(Banks are obligated to their shareholders  to maximise profit outcomes) i strongly think there will be an independant rate rise in the coming months.

I see 2 main factors effecting property prices in the future. 1; increased interest rates 2; A rise in unemployment.
I cant see any major concern for unemloyment unless China's economy slows down, and some say we are in the early stages of a severe depression, the only thing thats been able to keep the world economy alive is world wide stimulas packages (PRINTED MONEY).  Unfortunately for some i think the property cycle has peaked. I am predicting a very flat growth at best over the next 12 months.

I am sure there are plenty of people out there that disagree with me, but i strongly feel that there is a lot of risk out there in property. I have been monitoring SOLD prices lately and vendors are taking 10-50k less than advertised on properties prices between 500-650k

Any advertised price on property atm is well above the vendors wildess dreams, i think people are slowly starting to realise this, and the banks will adjust their valuations accordingly. This will prevent people falling into negative equity if prices fall.

Good luck to all investors, got a little off course with my response but thats my 2c worth.

Cheers,
Steve.

I have spoken very breifly about using a line of credit with a broker, he suggested it was a good idea to buy investment property. I am looking for feedback about using a line of credit on my first home as the deposit which i saw discussed by someone else in the thread.  

The scenario goes.

I want to buy a property for ~500k –
20% desport is 100k. – Can i fully fund this through a line of credit
Apply for a 400k Interest Only Loan without paying Mortgage Insurance?

I have 80k saved, which i would put into an offset account to combat the interest.

I figure if i do this i can it can save on Mortage insurance  (~10-12k?) and also gives me the flexability with my cash, i hope to build a portfolio up quite quickly or renovate. I see this as being a simple and effective way to do, if possible.

Any feedback and advice would be great.

Cheers,
Steve.