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Because when you borrow money together, both people are joint and severally liable for the debt. That means, that the bank can sue both of you, or only one of you to recover the debt. What if your friend loses his job and can't afford the repayments? You'll have to pay 100% of the debt even...

There's not a lot to think about it actually - don't do it. Especially for your first (and only) investment....it will not end well.

It looks fine I guess. I'm not too familiar with the Chelsea area but it's good if you can buy near the beach/station as the demographic there is mostly young people who are priced out of St Kilda/Brighton etc. This property seems to tick that box. Also, the price looks quite affordable which is...

The emphasis on negative gearing can be explained in many, many words. But the simplest explanation is that in Australia, people have very high wages. As our tax system is progressively punitive (the % of tax paid goes up every $ you earn), the incentive is there for people to minimise their tax...

That is how tax lawyers earn good money :) But as an investor, concentrate on making money first. Tax is based on profit - so focus on profit first and pay the lawyers/accountants to save you paying too much to the tax man.

Like I said, it depends on your budget. The problem with larger blocks of land is that your yield will most definitely be lower. Especially those that do have subdivision potential - they may have yields of 2%. Can you sustain a 5% cashflow bleed every year (not including rates, land tax etc)...

Hi gshaheen, If you want to achieve capital growth, then a house in the paddocks of Cranbourne and Pakenham won't be a good place to start as land is released everyday. Plus it is so very far away from everything... St Kilda is good because as you pointed out, of the high rental demand. A 2...