[flighty]

I mentioned in another post that I'm a (part time) property investor. I like to flip properties, getting in and out quickly. A couple of properties I developed turned out to give a fantastic rental income, so I rented them out instead of selling them. It can also be a good idea to hold on to properties for a couple of years if you think there's going to be a big rise in a particular area. Financing for buy to let mortgages has dried up quite badly in the UK just now. I read that the credit crunch isn't so bad in Australia. So are buy to let mortgages still to be had easily in Australia?

[Cliff]

Yes, you can easily get buy to lets - in fact they are growing in popularity again according to a recent survey (http://www.news.com.au/couriermail/story/0,23739,25905775-952,00.html):

The survey found that investors were also returning to the market, boosting competition for housing.

About 30 per cent of all mortgages were for investors, up from a low of 24.5 per cent in March.

The trend was particularly high in NSW and Queensland, where 34 per cent and 33 per cent respectively of all loans arranged were for investors.

AFG's general manager of sales and operations, Mark Hewitt, said reports of house price increases were stimulating the market and encouraging investors in particular.

Here is some info (http://www.yourmortgage.com.au/compare-home-loans/loan-guide/lnvestment-home-loans.aspx) on mortgages for investment properties:


Investment home loans

Investment loans are predominantly for borrowers who buy investment properties. These investment properties may include; holiday homes with rental potential, homes for children living away from home with rental or resale potential, residential property with potential rental income and increasing value, additional and regular income and tax benefits. The various loans which can be used for buying investment properties include:

* Standard variable or fixed rate home loans – Most lenders will allow you to borrow up to 95% of the price of your investment property.
* Equity home loan – Borrowing against the equity you’ve already accumulated.
* Interest only home loan – Repayments only cover the interest component with the interest paid in full at the end of the home loan.

Advantages of Investment home loans

* Interest only options can be a positive for ensuring good cash flow by giving flexibility to reduce loan payments or time periods
* Using lenders’ other loan features such as mortgage offset accounts, to help pay the loan off sooner

Considerations – Investment home loans

* Most lenders will require borrowers have at least a 10% deposit and will only lend up to 90% of the purchase price of the property
* Additional fees and costs

Investment home loans suitable for

Investment loans are suitable for borrowers who have an existing property or a deposit and are able to make regular repayments.

[FamousFive]

The Australian property markets more or less everywhere have flattened off or have been dropping for a couple of years now. Also rents don't give you much of a percent return on your capital. I think I'd only be doing this now if my time frame for selling again was quite long. Flipping won't work unless you can see serious potential in a property that other people have missed. It's difficult to do that when you're new to a country.