Dear Andy,

That’s a great feedback, especially for the newbies. We should and MUST do what we are comfortable doing. This is why I will never ever be a developer. You can promise me the moon, I still won’t do it. You can put me in front of a firing squad I still won’t do it. Being shot is a quick death, doing development would be like…[Read more]

Hi NSW 2011,

Thank you. I’m equally inspired by many people here.

Take care.

Angel

Hi Ryan,

Generally, rental managers only accept bank cheques so tenants can move in straight away without having to wait for the bank cheque to clear. Personally, I wouldn’t allow anyone to move in until the personal cheque clears.

The bank account issue is really up to you. What will make it simple for you? Managing the property takes a lot…[Read more]

Hi nl,

I advertise on http://www.gumtree.com.au.

If you are keen to look after international students, call the school offering English language and Universities and ask to speak to their homestay coordinators.

International students are pleasant. They generally don’t make a mess of your house and will pay more than the locals. I used to cook for…[Read more]

Hi Sapphire 101,

You are my kindred spirit. I also rent rooms out to international students. Currently, there are 6 of them. There’s more — I also have four children.

This was how I supported my kids. They have been living with international students from the time they had consciousness. I became a homestay mummy 16 years ago.

My house…[Read more]

Hello investingnovice,

I’m not familiar with Perth so will stay clear of giving you any suburb-specific advice.

However, I can offer you old foggy’s wisdom…

1. Buy where it is close to the City. Gentrification happens all the time.

2. Buy where there are infrastructures. Transport links, hospitals, good schools, close to employment.

3.…[Read more]

Dear RyanJD,

You kinda lost me somewhere… but here’s some thoughts about your questions:

1. Does anyone have problems with getting bond and 2 weeks rent by cheque which takes time to clear? Weekly rent will be by internet transfer

I don’t understand the question, Ryan. So I will leave it. For myself, all my tenants direct deposit their rent…[Read more]

Hi Nathan,

Your question and my answer – don’t take my word for it though. I’m not a licensed adviser so you can’t sue me.

1. Should I pay above 850K for the property? (I’m thinking not but not sure if it’s viable to pay for future value)

No, in fact, you should cost your renovation plan and take this to the seller. Say to him, it will cost…[Read more]

Hi Brisboy,

If I were you, I’d take what council tells you with a grain of salt.

If you really like the property for sale and you can afford it, by all means, buy it. However, just in case council has given you the wrong advice, make sure you have a Plan B that will work in your favour just as well.

Trust me, I’ve dealt with Council and you…[Read more]

Hi again,

For those who are curios. NO, it is not cross-securitised with another property. It is a stand alone deal with Westpac.

Hi,

I agree with the NCCP factor. Definitely correct and I have been very much aware of this.

We have always been able to obtain residential rates for this property. We originally borrowed 80% of the purchase price from the Merchant of Korea. Refinanced with La Trobe, also at residential rate; on 80% of revaluation. And, now with Westpac.…[Read more]

Hi Skyes,

Reading, getting informed, asking questions, all these are all groundwork. These activities are an “investment” in itself. Knowledge is power, they say. And, it’s true.

It doesn’t matter if all you’ve managed to save is $5K, that is still 5% deposit on a $100K property. So, that’s really big. There is no get rich quick formula…[Read more]

Dear RBK,

Perhaps someone forgot to tell you that there are no free lunches.

If you have no savings, why? Even my 18 year old has some savings and some share investments. It’s small amount, yes, but it’s something he’s worked hard for. Not even enough to buy a second hand car with. But what it has given him is the confidence that he has it in…[Read more]

Dear Nathan,

It is hard to give “advice” not knowing what the property is like and where it is. What you do after you buy it will depend on two things: abilities and capital.

We can want to do many things but it will, in the end, be up to your skills either as a handyman or a negotiator, to make them happen. Perhaps, it is best to take baby…[Read more]

Hi Scruffy,

I would like to share my story to encourage you. I know it is hard to stay positive when the market is down. My situation is such that I’m selling a property in Cammeray now where properties sell within weeks of listing and my “sale” keeps falling over. Now, that’s really sad. I, too, is struggling to keep my spirit up but I know…[Read more]

Hi quickchick,

If you happen to live in Sydney and would like to have coffee with me to share some “war stories,” I’d be delighted to. That is if you don’t mind hanging with a 50 something. Don’t worry I don’t sell finance, insurance, paint, laundry detergent or ponzi schemes. I just like to talk with people who are like-minded.

Angel

One simple advice: Stay Away From Them.

Angel

Hi Swampy30,

You have a good problem to have… A lot of available equity and good income, what to do?

Firstly, what you can borrow depends on what disposable income you have left after all existing financial obligations and living costs. This has nothing to do with the value of properties at all.

The solution is to visit with a lender and…[Read more]

Hi Gang,

In answer to your question, “yes, interest charges would be tax deductible.” But you can’t keep redrawing from it again and again as calculating which interest portion is tax deductible or not would be too complicated. Having said that though, if you using the LOC exclusively for the purposes of banking the rental income and then…[Read more]

MJ,

In a situation like yours, it is best for the family to go to a Financial Planner. Preferably, someone who works for the bank, who is on a salary, not commission.

I’m not implying that Financial Planners on commission are only after the your money. All I’m saying here is that those who work for the bank have not other motivation than you…[Read more]