obiwan,

I would definitely take the interest only loan with an offset account option. This gives you maximum flexibility for whatever you want to do down the track.

With regards to insurance for common area, the accountant is probably advising you in case of any public liability claims. Lets say you call a tradesman around to do some work at your house and he slips over on the driveway… potential lawsuit for $2million bucks! The common insurance can cover that any many other things.

As you suggested, probably best to speak to an insurance broker.

I don't know your full situation simmo, but i'd aim for a more aggressive goal!

I'm 26 and aim to be retired at 40 (I know Richard, I will get bored inside of 12 months ,right?).
My first goal at age 18 was to have $1mil net worth by 28 – I will probably fall about $100-200k short, but if you shoot for the moon and fall short then you still land in the stars, right?

What about if you aim for age 50? At least then it would force you to take some more decisive steps to reach your goals.

If you feel like you are overcommitting yourself then just take step back and wait for a while before taking the next step.

I know I don't have a lot of experience to be giving this advice, but hopefully it will inspire you to think a little differently, and more positively!

Best of luck!

It depends what you are going for Simmo.

If you had a number of properties and were close to retirement, then 37% gearing might be an acceptable level, because you need your income to be a lot more than the loan repayments.

If you are in the early stages of investing, it will be difficult to acquire lots of properties if you only ever borrow 37%

eg: If you buy another 4 properties worth $250k each, you will have to put in $630,000 plus pay for all the stamp duty and fees yourself!

If you have this much money to play with, then come and see me and I will give you some very competitive deposit rates!

Whatever happened to redwing? no posts for a while…

DWolfe,

Where abouts in Vic are you?

aaabbbccc,

Would be keen to do this in the city, or even over the net (ie: msn or skype or whatever).

I am about 25 mins south east of Melbourne

Let me know if it goes any further.

Wow… Highest I have been able to get in recent times is 75% for that kind of thing… and it would probably be on commercial rates.

I didn't buy any as I bought in the previous 3 years. I spend the last half of last year buying shares luckily!

Although the share money will end up going into an IP later this year I suspect.

Hi Richard,

Who is doing that if you don't mind me asking?

Would love to hear the stories re: Simon or Jeff if either of you have time to drop me a PM…which you dont… but I might give one of you a call one day for some advice and then just slip it in