Hi all,

I and my partner are on the business of renovating and re-selling. We agree with all that LA aussie says.

We are lucky that we already have the leverage of two full paid properties (rented out, so also giving an income)

The way we work is by saving as much money of the profits we make with each property sold, after taxes, etc., When we have enough money saved, about 20% of the value of another property we we use it  as deposit for another lo doc to buy it.

We only buy units, say two bedroom ones. Never houses. Units are cheaper to refurbish and quicker to sell, in particular if you can get them cheap and in a good area.

We average about one renovation/sale every four month and don´t complain.

Our aim is to increase the quantity of properties to renovate/sale each year and at the same time  to progressively keep one or other to be rented out for increased capital gains/equity/compounding.

We don´t mind paying lots of taxes for it means that we also make good money.

Cheers,

Tera

Hi boshy,

You are lucky if you only owe $105.000 that means that you have an equity of $172.000 in your home

If you don´t know it this, it  works like this: $320.000 – $105.000 = $215.000 x 80% = $172.000 which is the money most banks will lend you for a loc doc investment loan.

Please read about loc docs to find out all relevant information. You don´t need to show income paperwork to get a loc doc loan aproved, yet you need, of course, to be honest and realistic and to have  the necessary continuous founds/money every month to repay the lender. If you think you will not be able to come out with the money for repayments forget about the loc doc loan.

I work with my bank. Only one loc doc with them for every property I buy.

I don´t use a solicitor for the properties purchases, only a conveyancer and all goes well.

If I can be of more help, do not hesitate to ask me,

Cheers,

Tera

Damian,

I think that you should start small. I will forget about starting by buying a house.  i will start buying a small unit or flat in a good area if possible. Save the  20% needed for a loc doc loan and start from there. You will have plenty time later to increase your savings and buy greater things. Don´t forget as well that you don´t need to rent out every property you buy. Some times to fix the property  up a little and resell it for a profic is fantastic.  A combination of both worlds is my moto and I am laughing my way to the bank.
Best of luck,
Tera