February 2008 issue

Investors profiled in the February 2008 issue of API magazine answer questions from readers.

O'NeilProfile: Mark Vasudeva and Matt Dawson

Published: February 2008

Moving beyond property two

Q: We have attempted property investment but got stuck after property number two. We used the equity in our home to purchase number two, which had a self-contained flat at the rear. It was a cash cow but we were still not able to gain finance to buy more. Both of us work and we have two kids. My question is how you get past the second purchase and where or how you get more finance to buy again and again? It's a big question, l know, but it's a big blocker to our dreams.

A: Here are a few things that are relevant: -

  • We work closely with our accountants to keep our financial reports and status up to date. That way the bank can always be comfortable with our ability to service debt.
  • We ensure that the properties we have purchased are given an equity boost by such things as quick, cosmetic renovations and ensuring the rents are up to date and reflect market rates.
  • We buy well and ensure we have purchased below market value. This gives us a built-in gain straight away.
  • We get all of our properties revalued at least yearly, especially when the market is rising.

Mark