Ronulas,
This method is called line of credit and most banks do it. I have a similar set up with ANZ.
Having an investment property yourself, I am sure you will have the confidence about controlling your spending, which is required to managing a successful portfolio anyway.
Speak to your existing bank about this set up and I am sure they will be happy to help and keep you on as a customer!

TD

NATS,
so good to hear of someone in my position
I have lodged mine and my husbands tax this year using etax and we have 4 properties and shares between us. This came about because last year I provided my accountant with spreadsheets of all of our details and expenses and all they had to do was key the amounts in and check over the attached receipts and they charged us $1265! I hadnt missed anything!
Anyway, this year I did spend a lot of time researching and speaking to the tax office which has given me VISIBILITY of all the expenses and costs relating to our properties. I learned so much more and actually picked up on claims not made by our accountants in the previous years!
Any questions I was unsure of – I called the tax office and spoke to the investment department who helped me greatly. I have receipts to substantiate every one of my claims, so not concerned about being audited.
If you feel like you understand the process then I say go for it, but its definately not for the non accounting type person who is time poor.

TD

hb
I hope you are referring to yourself when you say this forum is full of ‘dreamers’ and ‘mortgage brokers’
other people contributing on this forum may take offence…

TD

Hey Paul,
In my three years of investing I have attended free seminars (only one I paid $495 for), bought many a book and read this forum as well as others forums online. I also borrowed Steves book when I saw it at the library (sorry Steve I didnt buy it!)
I think the information out there is amazing – all you need to do is take action on it!!
Most people that take the step to pay $$$$ for a seminar need extra motivation and support more than the information.
As you can see – all you need to do on here is ask a question and you will get some answers!

TD

Thanks Stuart for backing me up and clarifying the use of FHOG on IPs.
But to Avenged – a word of caution on approaching a financial adviser…..approach CAREFULLY. This may be a gross generalisation, but they will probably talk you into investing in managed funds and trust (which they receive a healthy commision for).
My general rule is that if you are going to pay for advise from a professional then make sure they have already achieved what YOU are wanting to learn (lead by example) this applies to non paid advise also!!!!!! SO ask the questions if they already own investment properties, how many, how long have they been investing..etc and dont take advise from anyone that hasnt!!

TD

Hmmm, this may not interest you, but this is what I would do……
1. Stay at home until you really have to move out (boring I know).
2. Use your money saved for a deposit on an investment propery to make it positive cash flow and put your pos cash flow towards more pos inv properties!
3. When you are really ready to move out – buy a home that needs a little bit of renovating and put your FHOG towards fixing up the property and increase the value. Get some tenants/friends to share with you and help pay the mortgage!
4. Buy more properties with your equity!
By the time you are 30 you should be set financially (and probably addicted to investing)!!

There are many other strategies you could use and I must admit I do not know the full regulations with using a FHOG as it wasnt around when I bought my first property, so someone else may be able to help with that.
Keep reading books and attending seminars and good luck…

TD

Also, mainstream media is usually based in city centres, therefore they are usually looking at the immediate area surrounding city centres – which as we know has not increased in value (Melb and Syd esp)

I try not to listen to negative feedback otherwise I never have accumulated a successful portfolio…
when my inlaw said “why on earth would you want to buy there – who would live there? and you have never been there and never been in the property?” I just smiled and said nothing

TD

i had a property that was in a block of units that backed on to the Ferntree Gully cemetary (VIC). Tenants were happy because it was quiet!!
The local council owned it, as I was sent many letters when they were extending it.
I didnt find it effected the value of the property, as some people may suggest.

TD

On an investors note:
I bought in Kalgoorlie last April, while my friend bought house in Kambalda..
she has had no tenant in now for the last 8 weeks..It also took about 6 weeks to find a tenant when she first purchased..
not sure where it is at now..there may be good capital gains coming I guess…
My property has changed tenants after the first lease expired.I think I had about 1 week untenanted..my property went up by $25k during this time…
TD

TD

Great work Redwing,
good to hear of someone who has just made it as that is what i am striving for.. I have $850k in property (value) and am looking at buying next week…hopefully make the mill!
I think it is psychologically significant for those of us who have started with nothing and remember trying to scrape together the initial deposit for a home loan all those years ago!!!
Keep it up and I will be making a post when I reach your goal.

TD