CITR Property Thread

[plAythiNG]

Yeah if you have to borrow 80%+ you have to pay mortgage insurance and the banks frown upon it. And yeah as stated putting down bigger deposit means less interest paid and money borrowed.

if its your first property alex try to put down as much as possible. Dont lash out and have expense things in the house. Make sure you pay off as much as you can. first 2-3 years are the hardest then it gets easy.

Best to get something in your portfolio mate. Even if you start with an apartment or unit in cheaper suburb. Once you've start you can always use equity to help you out if worked correctly/efficiently..

I was looking to pirchase an investment around the 400-500k mark. Im kind of inclined to look at propertys with decent yield in in the $350k bracket. Regardless i be looking to save $100k first... however i would only put down 10% and have lmi waived and leftover funds are to cover stamp duty and sol fees

[cartoon]

Good points fielding. Agreed from a neg gearijg perspective that u want to have a high debt to keep the interest high. However is the lmi really reallynworth the extra $20-$30k? Imo i dont think it isnworth it...

Why are youbsaying dont cross collaterise propertys if you have multiple investmemts?

I know from a banks perspective its more work involved when it comes time to access more equity or release properties etc... however from a customers perspective it it does help them keep lvr's down and as a result aim to avoid lmi and aiming for that next property purchase... personally for me i wouldnt cross collaterise as its easier to know how much equity there is in each property by looking at the debt of each loan and comparing it to the value of today ..

Neg gearing? That's a waste of time. I run all my cash flow neutral or positive.

The LMI is well worth it because its capatilized back onto the loan meaning its a tax benefit and depending on where you buy being able to hold onto 20-30k cash could mean getting your next investment so much sooner and buy aggressive at the right time of the cycle.

I don't cross collaterise so I don't lose a whole portfolio of property when one led bad.

[plAythiNG]

Lol. Neg gwaring a waste of time and in the same post you say its a tax benefit by capitalising it onto the loan??

Do u mind sharig the reason why u run ur inv prop in neautral or pos geared?

I can see your stand point on the fact that u are borrowing an extra roughly $20l, paying interest on it to get into the housing sector early. Personally for me you need to be damn good and know for a fact the value ill appeciate at an amazing rate to justify the $20k plus interest...

[cartoon]

Lol. Neg gwaring a waste of time and in the same post you say its a tax benefit by capitalising it onto the loan??

Do u mind sharig the reason why u run ur inv prop in neautral or pos geared?

I can see your stand point on the fact that u are borrowing an extra roughly $20l, paying interest on it to get into the housing sector early. Personally for me you need to be damn good and know for a fact the value ill appeciate at an amazing rate to justify the $20k plus interest...

I should have rephrased. Why put down such a large deposit when your LMI can be put back into a loan on a property that is paid for by some one else if positive geared.

My point is that if you do neg gear the LMI just becomes more of a tax benefit and leaves you with more cash to buy the next one with.

I run positive gear as I don't like spending out of my pocket all the time, also the place is making you money consistently regardless of the property value.

As for what you buy where. I buy in a certain suburb that has good rental return (all positive) and as for capital grown i made 20% on the place I sold at the time of sale and held it for 2 years.

[fatboyz39]

If your on a high income tax bracket then negative gearing is beneficial. Loaning up too 80% is hell of a lot easier then getting 85-90% loan of the purchase price. So a 20% is what you need off the purchase price and add another 5% for solicitor fees/stamp duty.

So for a 500k home/unit/apartment ll say a safe bet have around $120-125k.

If your on a good paying job and secure then getting a loan up too 90% will be abit easier.

[Norm]

I wouldn't go as far to say negative gearing is futile. When you get taxed $60,000, negative gearing for me is the way to go. Capitalise on taxed money which otherwise I will never get back.

[M@lew]

We need a property thread me thinks since it's also time for me to start looking.

Although when it comes to it...

[knobosaurus]

And it's something new home owners should be learning before purchasing. Need a book

[cartoon]

I wouldn't go as far to say negative gearing is futile. When you get taxed $60,000, negative gearing for me is the way to go. Capitalise on taxed money which otherwise I will never get back.

Taxed 60k Fk me your earning some serious cash!

Everyone's situations, goals, likes and dislikes are different and all these will change how, where and why you invest.

[Norm]

We need a property thread me thinks since it's also time for me to start looking.

Although when it comes to it...

I thought you were in Finance Matt !?!?

Taxed 60k Fk me your earning some serious cash!

Everyone's situations, goals, likes and dislikes are different and all these will change how, where and why you invest.

Your right. Everyone's situation is different. Negative gearing isn't for everyone and I sure as hell wouldn't want to stay negative gearing forever. I'd like to someday move towards positive gearing.

[BOMDC5]

Getting a 95% home loan isn't that hard at all, just a few little tips to keep in mind and you can get yourself in. Saving up 5% over 3 months will class the savings a genuine savings and will show the bank you have the capacity to save. You can have the stamp duty funds gifted and it'll be fine.. Ensure you have no defaults, have a full time job and you should be sweet provided your broker presents your application to the bank the way they like it.

[mrntegra]

Loving all the house talk.. good to listen to everyones opinions. But yeah everyone's situation is different and make sure you get financial advice that will tailor a product to your needs.

[PG_DC5]

Getting a 95% home loan isn't that hard at all, just a few little tips to keep in mind and you can get yourself in. Saving up 5% over 3 months will class the savings a genuine savings and will show the bank you have the capacity to save. You can have the stamp duty funds gifted and it'll be fine.. Ensure you have no defaults, have a full time job and you should be sweet provided your broker presents your application to the bank the way they like it.

oh awesome, defs asking you for advice when the time comes man. I'm still in uni, but talked to my uncle about it last evening. Should rent my house in the country next year (the hospital gives me $90 a week for rent, and country rent prices are low), and try purchase an investment property as soon as i can afford it in sydney (preferabbly in growing areas like Ingleburn).. which would then mean that I just pay off the interest for the new house, and get some of that back from rent. Is that kind of the idea of negative gearing?

(i have no experience at this stuff, never had any interest in money-related matters)

[felixR]

We need a property thread me thinks since it's also time for me to start looking.

Should we move all these posts into a CITR Property Thread?

[DaRKNT]

Yes.