I have thought of that!! Unfortunately I don’t think my wife would be into that!

Jamie

So are you saying that I can take out a LOC on my PPOR say 300k buy 3 IP with 100k deposit on each with 3 different banks with the same LOC?? and it would be all fine? Is there a lend limit the banks would loan as the cash is coming from a LOC from another bank?

Cheers

Hey New Guy
thanks for the info. Im always scared to talk to financial advisor. but for example he says ok maybe you have enough equity in property you should diversify into shares. I don’t have enough cash really for a full time broker that is really going to take care of my needs. I will get a rookie that has just come out of uni and take educated guesses on which companies he should buy with my money. So to him, i more of a genie pig until he gets a couple of home runs and his employer lets him take on investors with deeper pockets. I have a bitter after taste as I have gotten burnt for 120k in the past with the stock market. bad timing and bad investment banker.

working on my trust issues

Cheers

Hey Jamie
Thanks for the info.

When you say leverage your PPOR does that mean basically borrow against your house to put down a deposit for an IP? And can I do that every year without a problem? Is that the definition of Cross collateral? or completely different?

Also, I forgot to mention, that I don’t work so if the IP is negative geared then I should put it in my wife’s name for tax purposes, correct? If its positive I should be put it in my name I believe. And if and IP starts to go positive can I switch it to my name easily??

So just keep the cash liquid? wouldn’t it just be sitting there losing money every year?

Cheers

• This reply was modified 10 years, 5 months ago by  yuley7575.

Hello Marty

So say you were me an investor. You are looking to buy a IP. Would you be doing interviews for brokers? as in calling a few to see what they all say, and then narrow it down to one that suits you the best??

Im just wondering how i can read page 50 without going through every page. Usually there one sites with 100’s of page have 1-10, 20-30 ect so you can then click on 20 and go to page 22 in two clicks. Not sure if I actually explained it correctly.
Cheers

Well originally I was thinking of just going Interest only and hopefully pick a great area that is going to grow in capital. Hold for 7-10 years and sell and do it again in another area. Do this with 3-4 properties spread out over 5 years so buy, hold, and sell. Instead of 10+ properties for 30 years paying them off slowly. I don’t work so were only on one salary and I rather not negative gear or lose money even if it might save a tad on the tax breaks. But yeh, tons of things to consider when buying. CRAZY!

Yeh, I think everyone is right about Melton. My wife thinks I’m crazy to invest there, with all the exact same points as everyone has mentioned. Not being here I’m just reading articles and researching growth areas that might hit. Everyone that I lives here says stay away from Melton.

We have our PPOR here in Melbourne and that is one of the reasons why we are looking to invest in Melbourne. Second, is that I have trust issues….so reading info, getting advice for me is sometimes hard to believe unless I have actually done it myself. This being my first IP here in Melbourne, I thought it would be best to be kinda hands on with seeing the looking at properties for my own eyes, instead of going out of state and trusting someone to do the work. As I get one under my belt to see how it goes..im sure my eyes and mind will open much more.

My long term goal if would be have enough cash flow properties to live off of. See how it goes with one, if that seem to be doing good, then a second and then..you never know how things will go. Reading some of these people on the forum with 10+ properties to their name seem like a pretty good strategy. We have about $400k just sitting in the bank doing nothing. But I want to start small with a property in the 250-350k range so i can get it positive geared instead of negative. So possibly 20%-40% depending on the figures to get the property gear positively. Im really still at the first stages of researching some properties and area. Now looking at Dallas to see if anything decent is there.

Thanks for the advice about Melton Kinetic
Cheers

I would like to have a IP with cash-flow positive rather then negative geared. Most likely capped around 400k. We are only on one salary at the moment but we have cash waiting to be spent on investing. If I’m looking at Coburg or Reservoir I think I will have to lay down more of a 20% deposit to make it positive cash flow, and I don’t think your going to get more then $250/week on rent in those areas. Looking to hold for 7-10 years, not sure if it better to have a interest only loan and hoping capital growth will pay dividends…or a P+I loan. Its all hypothetical at the moment as this will be my first investment property, and Im from overseas and not totally familiar with the areas of Melbourne at the moment, but if all goes well would love to purchase one in the next 6 months.