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From: Rasputin .


I wish I had the information available on these forums ten years ago. Unfortunately I am now stuck with a brand new home so no equity (YET)

I also unfortunately took a few investment loans to buy some tax effective investments, you know the usual Olive plantation, Winery etc...

I will be making sure my kids start off in life much better than I did simply by giving them info I never had.

Fortunately I have a high paid job that will eventually let get that equity in my own home and then I can start buying some IP's
 
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Reply: 1
From: Jude H


Rasputin,,

Hang in there! With knowledge you are 1/2 way there.

You don't need a lot of equity. I have just bought 3 properties with $49,500 by way of LOC. It really is as easy as everyone says, PROVIDING you do your homework.

Wish you all the best

Jude
 
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Reply: 1.1
From: BILLY BOY


As long as you have equity behind you "the world is your oyster"

Billy Boy
 
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Reply: 1.1.1
From: Robert Forward


Hi Billy

You don't need equity behind you. Just a good understanding bank manager. I just purchased a property yesterday with 100% finance that I had organized in 15 minutes from a cold call to a financier. Though I need to pay all associated costs.

Cheers
Robert
 
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Reply: 1.1.1.1
From: Rasputin .


Who was that through ?? All people I contacted including using a mortage broker informed me come back when i have equity ...
 
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Reply: 1.1.2
From: Joo Joo


sorry I just signed up, what is LOC?

joo joo
 
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Reply: 1.1.2.1
From: Robert Forward


Hi George

LOC = Line Of Credit

Cheers
Robert

The Sydney "Freestylers" Group Leader.

PS: "Be Not Afraid Of Growing Slowly, Be Afraid Of Only Standing Still."
 
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Reply: 1.1.2.1.1
From: Joo Joo


thanks rob, silly me
 
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Reply: 1.1.2.1.1.1
From: Anonymous


Alright I'm new. How do I start. I have $98,000 still to pay I&P on my first property, worth about $200,000,(a duplex, I've bought both). One is let out permanently at $160 per week and I live in the other. I have part-time work. Please help. DN
 
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Reply: 1.1.2.1.1.1.1
From: Rolf Latham


Hi DN

Is it permanent part time work, cause you have nice equity there

Ta

Rolf
 
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Reply: 1.1.2.1.1.1.1.1
From: Peter Kmita


My name is Peter I am new to Investment properties and would like to know how “Interest only” works.
 
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Reply: 1.1.2.1.1.1.1.1.1
From: Chris G


Hi peoples,

Peter..

Interest Only (IO) works exactly how it's name suggests it would. It is a loan where you only pay the interest and therefore pay nothing off the principal (actual loan amount). Eg A $100k loan @6.5% IO loan you would pay $6500 for the year. The loan amount(principal) will remain $100k.

It may seem weird that you are not actually paying off the loan but the theory is that you use the extra cashflow (saving from not paying principal) to buy other investments. Over time you're property should increase in value so the loan amount becomes less significant compared with the actual value of the property.

help, did this, i hope
cheers
Chris
 
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