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Ok thanks for all the replies. I get it now. Depreciation from a TAX point of view would make a property more cash-negative...because it is a cost....like interest payments.

I am looking at buying a property which I thought would be cash flow positive. However, I've been told that after depreciation, it'll be slightly negative. What I don't understand is why this is the case. I know the building depreciates, but as a whole, properties tend to appreciate in value...

Thanks for the quick reply. The only problem with withdrawing from the offset vs selling is that it still locks in interest repayments; I was thinking more about the scenario of completely exiting the loan agreement. But your answer basically answers my question - so it can be done but it is...

Let say (hypothetically)that I borrow to buy an investment property. I put down 20% and pay off another 10% over a couple of years. However, due to changing circumstances, I now need that 30% equity for something else. How does this work? Is it possible to sell the property and liquidise my...

Thanks for your answer, makes sense :)

Thanks Aaron and Nemo for the quick replies. Nemo, that's a really good point and I also wouldn't mind clarification from an expert on that. I always thought that the banks would ask my wife about our overall household situation, which includes my income. (Edit: yes, only crdit card debt...but...

Hi guys, I'm new to property investing and just recently found this forum, which is a great bastion of information. I have a few questions and would appreciate your opinions. Firstly, our situation We are interested in buying an investment property around the 200-250k mark. I am viewing this...