Fundamentals

Thanks Colin, appreciate the comments. I invest in other areas, but want to diversify into property.

 

Thanks Jane - a few people have mentioned borrowing capacity so I might look into that while I read up..

 

Thanks for the comment, I’ll craft out a plan and review against what I read.

 

Personally I don't think borrowing capacity is most important atm, but good to know . You need to know how best to use that borrowing capacity and cash/equity you have first with a good strategy/plan to get you moving towards your goals.

In fact I've seen it work against some people . A bank tells them they can borrow upto 1.4m and they think its spend, spend, spend time.

 

I tried a few calculators and they tell me I can borrow way more than I want at this stage. I’m keen to get going, but small to start with.

 

Thanks Y man - I’m thinking between $300k-$500k with a max 80% LVR to start with. This puts me in Adelaide and Hobart territory, probably less for Port Macquarie (caveat - areas to be researched)

 

Update - I managed to get hold of:

• More Wealth from Residential Property - Somers - good read and knew probably 70% of it already - good fundamentals as well as some insightful info

• The Truth About Positive Cash Flow Property - Lomas - halfway through this one and finding it quite good - builds on the first one (above). She references her other books a fair bit so might get those as well (?). The key message I found with this one so far is the difference between positively geared, and positive cash flow - prefer the latter. The LOC loan is interesting too, as is the structure options.

• Grow Rich with the Property Cycle - Trass - haven't started this one

I also had a broker around who went through some good options and loan amounts way higher than I plan to use straight away. Still targeting something sub $500k and cash flow positive from day one.

 

Good stuff. Knowledge will help you find a better path without having to rely so much on the words of salesmen lining their own pockets telling you to buy some OTP rubbish on a small piece of land out where demand will be forever low.
I read about 4 Lomas books and found them ok but not awesome. I mainly use it as an understanding of one type of strategy to then compare and contrast to the strategies by the other authors, so I would continue with the books by the other authors instead to get more rounded viewpoints and strategies.