G'Day NHG,

The property is on a 550sqm block and i am relatively confident GF should not be an issue. The agent mentioned to them that with a very simple reno they could get $400 at the very minimum. My real interest in the property was the CG potential. You can do a lot (by way of CG) with a brick house, close to the station and in a cul-de-saq with massive reno potential. 

A mate of mind who has a few properties in the area has alerted me to the number of housing commission properties in the bidwell and treager areas (as per your original post).

Regards

Shahin

Hi Jane,

Re the Kitchen for $1,607 – does that include the benchtop? Also where did you get a kitchen of that size for $1607? 

Regards

Shahin

I don't think so on the basis that a had a client purchase a 3 bedder 2 weeks for $315k. It was in a cul-de-sac, brick and 7 minute walk to the station. They were going to live in the property but it was being rented for $350 per week. Had good potential for a renovation however it was rented so the reno could have been done at a later stage.

Hi Jane,

Nice blog – what's your thoughts on the re-use of existing materials (such as floorboards, internal doors, cabinets, etc) within the house instead of buying new or even buying second hand as opposed to buying new?

Regards

Shahin

Everyone's situation is different. I personally try at contribute as least amount of deposit as possible but I try to stay at the 89% LVR mark because after 90% the LMI premium increases significantly. Having said that, I have previously found 2 properties at absolute bargain prices when I didn't have too much deposit so I went for a 95% LVR lend. Remember that LMI is tax deductible. 

You need to have a IP strategy for the future and make sure that you have the adequate funds/deposit for future IP purchases.

Regards

Shahin

My comment was a bit obnoxious but I am not a fan of biased advice!

lol he is the middle of renovating – its hardly an ivory tower!

I am in the process of buying a property for my personal portfolio at 88% lend. LMI is tax deductible. I have several clients (surprising 2 from Sydney) who have purchased in Fairfield due to its close distance to the CBD.

This is why I am saying that you can set up a seperate loan against your PPOR (this is not cross securitising) and this loan should be either a fixed or variable loan but not a line of credit (for what you are doing). This way the interest is not cross contaminated when your accountant does your tax. The interest is caulcated against this single facility that is located against your PPOR and of course the facility against your IP. Again this is not x-securitising. Does this answer the question? 

Hi MMB,

There is no question about the fact that you should have landlord insurance. I had a bad experience within one of my properties and the property is based in Sydney's north shore (affluent area) and the property was worth $950k. It was severely damaged by the tenants and if it wasn't for the landlord's insurance I would have been in a lot of trouble.

Good luck with the IP!

Regards

Shahin