Originally Posted by street
What a helpful forum, thanks guys..
Hi Street (pardon the property pun),
Your biggest problem is going to be getting funding from the banks. Property is a filthy word to the banks right now and they will only lend based on your income and your ability to sustain mortgage repayments from your income. They do not now give any real regard for rental income.
I am with you on this one as I think its now a reasonable time to invest and if you dig deep enough you can acheive double digit yields (between 10-12%).
To give you an example of what I mean, only this morning I got turned down at the initial application stage where I was prepared to stump up 30% cash personally and borrow 70% from the bank to buy an income producing property yielding 11% with a sitting long term tenant. I offered to repay the loan in 8 years, I offered the bank an additional property which is mortgage free. They turned it down...
You can send me a PM if you want to hook up and chat about this as its a bit of a mine field when you take into account tax, hassle and expenses. The only thing that makes property attractive in my view is the ability to borrow and not lump all your money in.
Good luck with this. It does have its merits