As Jamie said the negative gearing concept is flawed. You lose money to save tax compared to paying tax on profit. I know which one I would prefer to utilise. OTP as others have stated is quite risky as well. Good luck and I hope you get your deposit back if you decide to pull out.

• This reply was modified 8 years, 1 month ago by  Tony Fleming.

It depends on your goals and when you want to achieve them? I’ve invested heavily in regionals for cash flow but the foundations of my portfolio was capital growth. You need both cash flow and capital growth to keep growing your portfolio but focusing on capital growth definitely helps for quicker transactions. If you are considering regionals the things to look for is
-more than one industry in the town
-houses or Units that you can do cosmetic touch ups on. It’ll lower chances of vacancies, boost rental return, quality of tenant as well as provide some sweat equity
-Infrastructure(is the town going to be expanding any time soon)
-Talk to people in the town(property managers are more honest than sales agent as they will have to deal with a grumpy landlord)
Hope this helps!

• This reply was modified 8 years, 1 month ago by  Tony Fleming.

95% is still available but from what I’ve heard you need to jump through hoops to get it. 88% is the sweet spot to aim for, LMI drops significantly. One of the brokers on here I’m sure could help you out. Good luck :)

Your best bet would be to try and find an investor on the ground there. Someone who knows the ins and out of the suburbs etc. Good luck with it :)

Hi Amanda its definitely possible to invest on a low income. Your best bet would be to see a broker who will be able to work out your borrowing power. Corey Batt or Colin Rice from on here would be able to help. From there you can work out a plan moving forward. Are you looking specifically for cash flow or capital growth? You can have both its just a bit trickier. Good luck and let us know how you go? :)

Benny has hit the nail on the head. I literally can’t remember the last time I had cash in my wallet. It’s all sitting in offsets

What are your goals? Cash flow short term growth long term security etc

They tend to let these type of things settle and see how it affects the market over a longer period of time. I don’t see a drop happening this tuesay although it would be good :)

What if negative gearing gets abolished?

There are plenty of opportunities with current interest rates to be cash flow positive with as little as 10% deposit. Regional and Capital city minus Sydney/Melbourne/Perth markets unless you know what your doing. Depends what your risk appetite is though. I personally would split it into as many deposits as possible, more fingers in different pies. You don’t want too much equity tied up with one property. Flips are very dangerous in this market so be wary of that. Hope this helps just my personal view.