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Discussion in 'Introductions' started by Akw, 14th Jan, 2016.

  1. Akw

    Akw Member

    Joined:
    14th Jan, 2016
    Posts:
    7
    Location:
    Sydney
    Hello everyone,

    I've only just stumbled upon this forum and I must say the community here seem to be very supportive and active.

    I started investing in properties about 10 years ago in Brisbane. With fantastic advice from experienced investors, my own research and a bit of luck - I'm in a position now in my early 30s where I own one IP with no liabilities and looking to buy 2nd one outright in Brisbane with no loan. Unfortunately I can't dedicate enough time to IPs so hoping this forum will be informative and educational for my future plans and management of IPs.

    Cheers
    Andy
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,579
    Location:
    Adelaide, SA
    Hi Andy,

    Any reason why you're so debt averse? Could have bought a lot more properties. Glad you found us in any case.
     
  3. MsAli

    MsAli Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,147
    Location:
    Sydney, Australia
    @Akw - welcome! What's the reason you don't want a loan? There will be no tax deductibility with an outright purchase.

    I personally would maximise opportunity by borrowing up to 88% LVR (of course within the given risk profile).

    Say your property is worth $300k, 88% would be 264k, (less LMI). This should give you enough funds to invest.

    So if you take 12% for deposits (88% LVR) and 5% costs, you can purchase circa $1.5m of real estate and hence maximise exposure and opportunity.

    Of course these are hypothetical numbers. Depends on what your property is worth :)

    This will come down to your affordability / servicing.
     
  4. Akw

    Akw Member

    Joined:
    14th Jan, 2016
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    Location:
    Sydney
    Thanks D.T. and Ms Ali,

    It's purely due to my family circumstances at the moment. I have gone back to medical school as a student, we have 2 dependants (twin boys, 4yrs) and my wife's work has only recently become very unstable - may be going part-time very soon. We are also renting in Sydney so our ability to burrow enough and repay is limited at the moment. Aim is definitely to invest in more but only after I graduate in 2yrs.
     
    MsAli likes this.
  5. York

    York Finance Broker Business Member

    Joined:
    24th Jun, 2015
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    1,621
    Location:
    Sydney
    Hi Andy. Congratulations and welcome to the forum. You will find a very valuable resource for all things property related. It is great that you have been able to pay off your IP and also that you have enough to buy another outright. Although you many find that not buying outright may also be beneficial. Leveraging can be an important mechanism in investing. It can allow you to grow faster, further and can also provide substancial tax benefits in your quest. Obviously your individual goals differ from everyone so it's important to surround yourself with a great team of professionals to help guide you along. Many great brokers, accountants and lawyers regularly post here in the finance and tax threads. Those threads are a great place to start building your team. Good luck. :)
     
  6. MsAli

    MsAli Well-Known Member Premium Member

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    18th Jun, 2015
    Posts:
    1,147
    Location:
    Sydney, Australia
    Good luck with med school. You've come to the right place on PC:)
     
  7. JDP1

    JDP1 Well-Known Member

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    2,839
    Location:
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    A fair bit on other un-property related topics as well- eg sports, psychology, relationships, (infamous) Donald trump, etc...a while back even half the forum was hitting on a certain member- havnt seen her since.lol
     
  8. York

    York Finance Broker Business Member

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    24th Jun, 2015
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    Location:
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    True ...true. ...there is also a prostitution thread now..so we have all bases covered... (no pun intended)
     
  9. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    Hey Andy,

    Question:

    What's safer?

    1) Buy a $400k property outright or;

    2) Buy a $400k property with a 50% deposit, and leave the other $200k in an offset account?

    Your repayments would be the same: $0.

    Your access to cash would not.

    Food for thought.
     
    MRO likes this.
  10. DiligentPM

    DiligentPM Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
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    Location:
    Brisbane
    Welcome to the Forum whereby there is a wealth of knowledge, experience and capability in the investment space...augment learnings on the forum with some good investment books