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Hi All, Thanks for the insight. As far as a HDT is concerned I have one because I listened to all the experts and advisers. I am not an expert in property investment. I just work hard at a risky job and hope to have enough for when I cannot work anymore or drop dead. It now looks like my...

Hi all, I was hoping you could help me clarify something. I am new to the game. I have purchased on IP using a hybrid trust controlled by a company trustee. I have two daughters and wife who are beneficiaries. My wife and I are directors of the trustee company. My daughters have worked...

Hi Bearsticky, Since my original post I ended up going with Metropole to purchase my first IP. Primarily to ensure I moved forward in starting my portfolio. Otherwise I would suffer analysis paralysis and would most likely stall and achieve nothing other than wast time. All in all the...

My unit is in St Kilda East. What about advertising? What is the expectation there? Our current asking rent is $435/wk. My research tells me this is about average for a 2 bed/1 bath/2 car spaces(one is a secured garage). It's in a secluded culdesac. I have recently spent 40K on full renos as...

Hi, I am new to this game and have only the one rental so far. In another capital city. The tenants recently moved on and I am looking for new ones. My property manager is supposedly advertising and showing through new ones but without luck. It has been several weeks now. I have a...

What is the rule of thumb regarding income borrowing power? I am led to believe it is about 6 to 1. As a rough guide is that correct? If your IP is neutrally geared does this take it out of the equation when calculating the amount of debt your income can service?

Thanks all for your perspectives. It is appreciated. My ultimate goal is to build 1.5 - 2M in working capital earning 5%-8% return (not capital growth. Money you can eat). Whether that is in property, shares ,some other vehicle or a combination of these doesn't concern me. I would like to...

Rolf, it seems someone on 145K/yr, no personal debts other than a 180K PPOR mortgage on a 600K property does not have enough serviceability power to go beyond just one IP. I don't know about you but I work 70-80 hours a week to make my income and I am led to believe that the average Joe makes...

The renovation to the Melbourne property was made easy by using Metropole. You pay a premium however, everything is sorted for you. This took the pressure off considering it is my first IP. Guys, I am not sure the methodology of drawing down your accumulated equity to purchase more IP's...

Hi, Well, I have taken the leap of faith and purchased my first IP in StKilda East Melbourne. Renovations have just been completed and a tenant has moved in for the next 12 months. I am new to this game. However, I suspect the bigger the asset base I can control sooner rather than later...

I maybe over thinking this. If my borrowing capacity is 490K (based on 148K income) and I have maxed this out (PPOR debt + LOC seen as fully drawn), how is it I can borrow a further 400K from a different bank if that bank is looking at ALL my debt (including LOC as fully drawn) in terms of...

Hi all, Can you please clarify something for me? I have recently refinanced to release equity on my PPOR and have set up a LOC of 275K in preparation of starting my property investing. I have a mortgage on my PPOR of 215 and my income 148Kgross/yr. Given my incomes capacity of 490K is...

So what is the plan? What do I do now to avoid painting myself into a corner? 3M

If we are saying a 5% CG average across your portfolio is too optimistic then what's the point in using residential property to build wealth? The running costs of a property investment business will set you back 2.5 to 3%, add in inflation and you are close to 5% and breaking even. And we...

It is an inevitability we all hit the serviceability challenge. I would like to understand and actively pursue the options available to me before it occurs and not put myself in a position where I could of starting something two, three years beforehand and waste valuable time. Obviously, a...

I use a 5% minimum annual CG in my 'what if' spreadsheet for property investing across the portfolio. I use this as the worst case scenario. Ultimately, if your total holding cost % plus inflation % is lower than your total annual CG then you are making money on paper. Are we saying a...

Hi all, Soon I will be faced with the DSR challenge. I would like to know what options I have available (other than working more hours and pay down debt) and start preparing now. Obviously, there is a lot of info in this forum, Cash Bonds etc. Who is the best adviser to talk to about...

Thanks all for your insights. It is appreciated.

I have a bad business debt from a venture that went pear shaped. An attempt to generate extra income. Nursing this every month to the tune of 1K. About 50K mortgage on the PPOR. I have recently refinanced to unlock the PPOR equity and am set to pull the trigger on the first IP with about 3...

I am 45 this year and just starting out. Well, I have all but paid off my PPOR which I guess is a start but have not been able to start buying IP's because of servicability challenges. Basically not enough income. Not only that, over the last ten years I have tried to start businesses in an...