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No issues in releasing equity from another property to fund NRAS deposits.

A groups of investors and I often view NRAS as bond purchases to reason with it. If we leave it to 'bricks and mortar', we fall back into traditional investing models and view it through the typical DD lense and its often harder to purchase. But that doesn't mean that the deal isn't often...

Hey AtomicP - I've posted on serviceability issues on this thread earlier. Part of the answer to your qn will depend on whether you are buying at 80% or in LMI category? On that level of income you'll be fine for more than your next purchase. And the purchase after that. And the one...

Yep - I used to obsess about changes in numbers. I've gone through my NRAS cash flow spreadsheets for hours on end. Reality is, slice and dice it whatever way you want - be ultra conservative and assume some really bad numbers. Your still likely to be ahead. E.g. put the interest rate...

Hmm my concern would be that its not complying with the NRAS regulations... Pretty sure the regs say that market rental valuations need to be done in year 1, 4 and 7. I haven't seen anything like this with my NRAS purchases. In terms of your concern, if the market experienced solid...

Helps sure - but not nearly as much. Your cutting the c/f by about 4k p.a. Also depends on whether theres an expectation to be on 25k p.a over the next decade. You may be better of just buying other positive cash flow property when you cut the numbers down to 3-5k p.a+.

Haha saying that it doesnt 'cost one iota' isn't the full picture. Breaking it down, it just means that the property will pay for the interest cost and then pay down your debt...not out of your pocket, out of the properties positive cash flow return. :) Hope that helps, Cheers, Red

What type of investment were they selling trqx? I've seen something similar with dual income type properties.

I think he means that NRAS are positive cash flow investments. If you own them, they MAKE you $$$ every year, even on 100% finance. So you'd be 'paying' for the 60k of equity you pull out of your PPOR, but because the property makes you money, the property will pay for that cost and then...

Solid post there Euro. I'm all for the power of NRAS, but I don't believe NRAS is best deployed as a be all, end all strategy. At the end of the day, each 500k purchase you make, gives you around 100k in your pocket after 10 years. After tax of course. Comparing this cash flow strategy...

It means your relying on income - it can come from your day job, other positively geared investments, your company dividends, etc. Not just your day job. And realistically, the very large majority rely on some form of 'personal income'. Financing options - you can go to 90% + cap LMI with...

My experience with NRAS has been very positive. I've summarised my observations, both good and bad, below: Valuations As mentioned by CJay and Euro, there are issues associated with NRAS stock being overpriced. All this really means is that you've got to do your due diligence - because...