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Thanks Ausprop. You've summed it up nicely. We have struggled with the "never sell" ideology and the sentimental attachment we have to our current PPOR. But we strongly believe this strategy will put us in a very strong position re future investment and investment options. These times of...

See my previous replies. I should have been more specific in my original post. Our intent is to be totally debt free of non-deductible debt. Currently, the combined burden of our non-deductible debt and the heavily -ve geared IP#2 (which we would resolve by turning into our PPOR) is...

Sorry for being dense. Yes this is a strategy we are already utilising but I'm afraid it would take many, many years at the current rate of conversion to be rid of the non-deductible debt, even to the degree of being able to improve our servicibility to enable the purchase of another IP. The...

I'm afraid $50 a week extra rent is not difference between buying another IP or not. The place is currently rented a market value as we have been slowly upping the rent every 6 mths. It was imacculate when the tennant went in and despite how they have chosen to keep it, the rent is pegged to...

Hi Rixter, Yes we have thought about this but we don't have enough equity in the IP's to do this. Even if we did, transferring the existing PPOR mortgage to the IP's doesn't change its status as a non-deductible debt which is ultimately what we are trying to get rid of. Flatout

Obviously lending is being tightened but at the end of the day, banks make money by making loans. As the loans will be fully secured against property it is still a relatively low risk strategy for the banks. We have run our "what if" scenario by our broker and it was he who crunched the...

In the immortal words of Pauline Hansen...please explain :p Flatout

You're right asdf, it is a buyers market. Unfortunately as things stand now we're not in a position to take advantage of it. Yes we could wait until the market turns again to or we could consolidate our position as outline above in my reply to Alex, cop a small drop in prices on the chin and...

Hi Alex (and others who posted along similar lines), We have struggled with this same thought - hold for the long term etc. However, we are currently stuck on 3 properties including our PPOR. Our two IP's are -ve geared (IP#1 not much, IP#2 a lot) but at the time of purchase we were chasing...

Hi All, After 12-18 months of umming and aarhing and strategising Hubby and I have finally made a big decision to sell our PPOR and IP#1 and move into IP#2. Why? Well by putting any realised equity (less CG on IP#1) into IP#2 we would be virtually mortgage free. Not quite initially but so...

I have to agree with you Xenia. Some investors seem to leave themselves very exposed. My PM was telling me recently about some friends of hers that got swept up in the WA property boom. In the space of about 2 years they bought 7 or 8 IP's, were very highly leveraged and negatively geared...

I'm with Buzz on this. We're in it for the long haul although we may trade a property here and there along the way to get the best out of our portfolio. One thing about the current uncertainty in the market is that as buyers, we need to "mature" as investors and be a bit more discerning about...

I had a very happy upbringing in a small coastal town in NQ. Mum & dad were small business owners though never with any great success until they accidentally fell into a burgening retail business when I was in my early teens. We had a few very good years until they went bankrupt and lost...

Hi Miss Muffet, At the risk of telling you how to suck eggs, have you varied hubby's withholding tax? If not, this should be the first thing you do to help ease the cash drain. Secondly, if you don't work already, have you considered getting some paid work. Even a part-time job will go a...

Monara, Give Reece Plumbing or similar a call and ask them to supply you with a padlockable tap. My brother installed one many years ago to stop his disabled son from regularly turning the tap on to drench the backyard and turning it into a mud bath (he and his siblings thought it was great...

I had to laugh. Years ago when hubby and I were both poor students living in a very run down cottage in a less than salubrious part of town we had a car broken into. It was parked right outside our bedroom window and we never heard a thing. Like us our dog was asleep in the room with us...

None of my mine or my husbands family are investors. Actually apart from my brother no one else even owns a PPOR. Their financial acumen extends about as far as trying to pay the power bill before it gets cut off. It guts me that we haven't been able to help them get out of the hole but as...

I have noticed the same thing in our local property guide where properties in the least desirable suburbs are advertised as "Mandurah" instead of say "Coodanup". It really peaves me. Trouble is that all of Mandurah including the greater Mandurah suburbs all have the same postcode so I suppose...

Just wondering if anyone has ever bought a repossessed property? We're looking a house that is going to auction in 2 weeks or so. In this situation what kind of reserve is the bank likely to have on the property or will the property simply go to the highest bidder? Also, we've never bid at...

We also wait until tax time, mostly because both my partner and I are contractors so we don't get any holiday pay. We tend to use the bigger portion of our tax refund to pay for our holiday. Forced savings :rolleyes: . Late last financial year we were a bit cash strapped though so I ended up...