Thanks Jamie. So in theory, if our contract states we are to borrow $600,000, and based on a bank valuation, the bank is only prepared to lend us $590,000, this would be an 'out', regardless of whether we can raise the additional $10,000 or not.

Thanks Jamie, excellent advice.Cheers…

Thanks Jamie, does that mean the vendors are likely to sit on the offers and then take the best they have, other than make an 'on-the-fly' decision on the offers as they come in?Warren

Thanks Michael and Richard for the feedback and advice. The end goal for us at this time is to put ourselves in a position where we are able to borrow to purchase a new home for ourselves to live in. We are thinking the purchase price would be capped at somewhere around 400k. We want to keep our two existing properties somewhere in our portfolio,…[Read more]

Thanks 'No Mates', we'll see what Mr. Swan has for us tonight

Thanks for the reply Jamie. Our PPR loan is already 100% offset, so all good there. I'm no rocket scientist when it come to clever accounting and taxation, but I suspect our account is talking Interest Only as a means of gaining maximum tax advantages. I'm just trying to get a better understanding of how Interest Only works, and at what point is…[Read more]

Just for the records, Allianz won't insure in the town we have purchased in. Had to shop around. No problems with GIO.

Yes, advice from our legal people was: Building insurance should be in place from when the matter is unconditionaland your finance has been approved to protect you as Purchaser.

Thank JacM, consider it done!!!

Hmmmm, so it can't hurt to have it. We're in Victoria and no-one seems to know for sure if we should or shouldn't. Maybe better to be safe than sorry.

No.

Catalyst wrote:
OK do tell. How did you overcome your fears? Did you use a buyers agent? I'd love to hear your processes that helped you decide this was the one.Before you said you'd bought I was going to say look at the numbers. That's what counts with IP's. Friends say "I wouldn't buy anything I wouldn't live in myself" which is why they own…[Read more]

Finally….today we took the plunge and signed up to our first investment property! Thanks to everyone for their feedback on this discussion and other discussions we've posted, and for the forum overall…..the advice has been invaluable just to get us this far…

Thanks for all the feedback so far, it's much appreciated. The unit we have in mind is one of 10 that are for sale. No pools, balconies etc, just 10 2 bedroom unit on the one block. They are all owned by the same person and being sold off individually. They are one and half years old and all currently tenanted. Any alarm bells here for anyone? Warren

Thanks JacM……excellent advise that I'm sure will sit well with me for the years, and many investments, to come…. Cheers !

Thanks xdrew, understand that, but am I entitled to view the section 32 at any time,. providing one exists, or do I first need to enter into some type of agreement regarding my intention to purchase the property?

Thanks Amanda, certainly appreciate the feedback. The dinner party scenario is no issue for us. Our only goal is to secure our future, but to not make too many "big" mistakes along the way, so just looking to hear experiences from other first time investors. All our research tells us to go exactly the same way you have, and that is the di…[Read more]

Wow, I might be starting to actually follow this. So, based on all that, if we were to draw $50,000 as a deposit on an investment property from the equity we have in our PPOR, and if the interest paid on the 50k is tax deductable, we would be better to re-draw the 50k, and then dump the 50k cash we are sitting on, back into the PPOR loan, so our…[Read more]

Thank you v8ghia, so it fair to assume that it's better to use our cashas a deposit, rather than our equity?

Thanks Thommo, really do appreciate the reply, but I'm thinking maybe it does show that this might all be a bit over my head, as that only confuses me twice as much and I have no idea what all the figures actually mean, or what figures to put where. My question probably wasn't structured quite right in the first place either, but thanks anyway,…[Read more]