Hi,
Your Body Corp fees will cover insurance on the exterior of your property only, not internal fittings or contents. You will also need landlord’s insurance to cover any loss of rent or damage by tenants and their guests. Remember that tenants tend to stay longer in houses compared to units so you could have more vacancies. Banks don’t lik…[Read more]

Hi Sark,
I agree with Ethan and Corey. If you take the 80% loan on IP3 then you will have access to the surplus funds (equity) of $80K for your next investment when needed. An offset account holding the surplus funds linked to the new loan will keep your paperwork neat, alternatively, you don’t have to draw down on the full loan. Have you…[Read more]

Have you asked your broker about a tentative on completion loan? If you can give clear details of the completed reno ( example of kitchen with materials to be used etc) the valuer should be able to give you a final “on completion” valuation which will save you having to apply for a new loan or loan variation later. Don’t forget to factor in your…[Read more]

Thank you Steve and your wonderful team for the 2016 Mega Conference.
The message I received loud and clear was that we all need a mentor who keeps us on track and accountable. We are responsible for our own successes but it’s much easier when we have a support team around us. Your negotiating skills which you generously shared with us are…[Read more]

Hello Touchingcloth, My son is in a similar situation to you, but in Tasmania.  Because he didn't fulfil the six months residency he has to repay ALL of the FHOG and stamp duty he received.  But because he didn't inform the State Revenue Office (purely out of ignorance which they acknowledge) he has also received a 25% fine.  The only way he co…[Read more]

Hello Guitarchick,

Good luck with approaching banks for a mortgage. If you know what your borrowing capacity is, it’ll make the searching for a property a whole lot more fun.

If you have difficulty obtaining a loan because of low income, consider this:
In Tassie the State’s Dept of Housing has a program for home owners who find it difficult to…[Read more]

Solutions,

You could approach investors such as those who use this site to partner you in a joint venture. Other sources are solicitors, accountants etc who are on the lookout for profitmaking ventures for their clients. If you have a good idea, let people know.

[gossip]

Something to consider:
Set up a trust before you buy the property (in the name of the trust), and consider selling one of the properties on stratum title. I’d recommend the older house because of the maintenance issue plus you’ll probably get better rent for the new unit. How do the numbers look now? I expect your cash on cash return just might…[Read more]

Any manager of a Caravan Park could easily buy all the sites. They sell them for a reason. They can maipulate the tenancies in those sites they do not own. Why wouldn’t they keep their own sites full and only rent yours out when there is nothing else left? There are quiet times in tourist areas as well!

Hi bmcg

I looked at buying an onsite…[Read more]

Hi Ajsov1

We tried an offset account for 12 months. Our loan was quite small and the interest saved was identical to the additiional fees. I also found that i was spending more at the supermarket than previously because of using a card. Used to running a tight budget with seven kids, but kept losing track of weekly spending at the supermarket.…[Read more]

What have the locals been saying about the market in Darwin? Have you asked any real estate agents for their opinion? I’ve been wondering if the slower growth rate means a longer period of growth or just that the market has reached maximum capacity. Just interested too.

Ann [whistle]

If you’re thinking of renting the land to a farmer, usual return is 6% of land value and they can flog your soil if intensive farming with potatoes, poppies etc. (I’m from Tassie.) If you’re going farming, the best farmers in the country average a 6% return on their capital. The national average is only 2%! If this is a lifestyle decision, GO…[Read more]