Uh, a $250k – $300k Sydney property would probably only rent about $200 – $250 pw max. Why not suggest to your friends to rent a $200 – $250 pw property and save the difference? They could save at least $10k a year. The Sydney market isn’t exactly jumping so there’s no big hurry.

Incidentally, I think anyone who can afford $450pw in rent and…[Read more]

The facility would turn your loan into a big FX punt, doesn’t it? Does it change the currency of the principal of the loan into some other currency? If so, and your main salary, rent, etc is in Australian dollars, you lose/gain money when the FX rates move.

I thought about using a Japanese yen mortgage (1.0% or something) but I decided having…[Read more]

I think Kellie-Lea has left FREWS, but I agree that FREWS is good. I’ve used them a couple of times and the staff are always friendly and happy to help you.
Alex

Anyway, I’ve read the book. Some interesting ideas (such as buying physical gold as a hedge) though a bit too scare-mongering at times (e.g. a government can cancel its currency at any time: theoretically true, but unlikely to happen in any of the big Western countries).

Also lacks some follow through. He talks about buying some unit in Bondi for…[Read more]

Here you go, Wilandel.

http://www.oum.qld.gov.au/?ID=29

Very interesting. So far those developers who bought cane land around the coastal strip are screaming. The government may reverse it’s stance down the line, but these things tend to be self-fulfilling, right? If the government insists on the plan for 5 years, say, the developers are going to start…[Read more]

Generally, if there’s a body corporate, treat is as a unit (townhouses, units and villas would be included here). If there’s no body corporate, it’s a house.

My own definition: if I can blow it up without asking the neighbours first, it’s a house!

Generally, the more land content and the bigger the place the quicker it appreciates. So a townhouse will appreciate more than a unit especially in later years. New developments get smaller and smaller. So if all around you are new smaller units and you have a big old townhouse, your townhouse looks a lot better. You can always renovate inside and…[Read more]

At what age did you start investing in property?
First property (Brisbane townhouse bought for $170k, current value $260k – rent $255 pw) at age 20. Now 27.

What difficulties did you have in doing this?
Not much. I had enough cash for a 10% deposit + costs, and I was employed at the time (bank lent me $150k on a $35k salary).

Was your first…[Read more]

The more income you have and the more assets you have, the easier it is to invest. A holiday will kill off your savings, though you’ll have a great experience.

Why not combine both? Say in Europe, get a Working Holiday visa, and work while you’re there. You get to meet the locals and make a few Euros.

I did it for the UK (2 years) then came to…[Read more]

Why would you need $1m a year? Ferrari, Armani, waterfront mansion in Manly (I’m a Sydney boy), summer in the Hamptons, winter in the casa in Italy, flying First Class all over the place….

I’m with you, Sonny JIM. My goal is $1m as well.

Now, the $1m question is: what plan have you got to get there and/or what are you currently doing every day…[Read more]

Hi, gmh454. I agree. This has not been a normal cycle in that it has been a lot more volatile than before. I think anyone who bought Sydney properties at 3-4% yields are in for a LOT of pain in the next couple of years.

My point is this: there is a massive difference between buying at (of valueing existing property at) 5% yield and the ‘median…[Read more]

Exactly. My properties are cashflow neutral (they’d be positive if I didn’t keep re-financing to buy more), and I’m still young. I’m planning for 7.2% average annual gains, and I’m guaranteed to be rich by 50 even if I do NOTHING from now until then.

Obviously I’m going to do more than sit on my hands. (Plus the more I see the world the more…[Read more]

I’m literally drooling over a market correction in Sydney properties. I’m from Sydney and I didn’t buy from 2000 – 2003 (always thought it was too expensive). I’m currently overseas but when I get back in 2005 I’m going to actively look at properties. Pick up just one or two a year until the boom that’s going to come in the 2010’s.

I just find it…[Read more]

Exactly. A down market will sort out the true investors from the people who just (luckily) caught a rising market.

Personally, my own prediction for the Sydney market (missed out on the Sydney market this time around, though I bought a few places in Brisbane between 2000 and 2003):

2004-2005: the market stays flat. Interest rates go up slightly.…[Read more]

My personal goal is “To do whatever I want, whenever I want, wherever I want”.

Definitely have to buy insurance, just because you can’t quantify how much you’re up for in the event of an accident.

I just settled on an IP in WA. A week after settlement the PM emails me and says part of the fence blew down due to strong winds! Luckily I had insurance from day 1.

A few hundred dollars for a good Landlords Policy is NOTHING…[Read more]

Hi, Yorker. I’ve seen some blocks (6-8 units) one single title, so you have to buy the whole building in one gulp.