Just more on melbear’s ‘tenants in common’.
If there are two names on a contract then this is the legal structure automatically used.

According to the ATO both parties are deemed to own 50% of the property and receive 50% of the income whether they have some other arrangement or not.

I think you may have missed management fees – assuming you are planning to use an agent. This is usually 7.5 – 8.5%.

Repairs are impossible to predict so as previous poster mentioned your positive cashflow could easily turn negative.

Another point I discovered in analysing my own investments…
Buying units under $100K makes it harder to achieve…[Read more]

Thanks Quentin,
I have chatted to deppro already and they sounded quite good. I’ll mention the Woodward case and see how on the ball they are
Ben

The last time I thought about this I concluded the main benefit of these companies was in actually finding the right property due to their “superior market knowledge” (take that with a grain of salt) – all the other benefits are really conveniences that you will pay for.

BTW, I still like going to seminars because it fuels my thinking and you get…[Read more]

I talked to a whole bunch in the area whilst I was shopping around buying and formed my impressions that way.
I went with the most professional agents, not the ones who went the most out of their way to impress me – that kind of attention is short-lived.
So far I have been very happy with the decision. Especially happy considering I live…[Read more]

Call up the ATO. They will send you the Guide to Capital Gains Tax booklet for free.

Some developers just want to keep their builder mates busy when the housing economy is quiet

quote:
I think it depends on where the property is. We have property in warmer states, one with and one without a pool. We got about $40 less rent a week for the one with no pool compaired to a rental in the same street with pool.

It does depend on your strategy a little but in general what you would gain in rent you more than lose in the…[Read more]

quote:
Hi Ben

You could refinance now, but beware of exit fees and Application fees for the new loans. If you just want to use the extra equity you could just approach your current bank asking for an increase. Also beware that the bank valuation may not come in as high as you had hoped.

What was the LVR when you purchased? You can generally only…

[Read more]

I think there’s a book on creativerealestate.com.au by Barry Black that shows how he managed 179 properties with 1 x A4 folder!

My take on this is based on the fact I am young, have no dependants and live in the currently maxed out market of Sydney. There is no way I can get the same returns on a home here than I can on an investment in say Brisbane.

e.g. rent income pm in Brissie = $950
– rent paid in sydney = $150
– mortgage payments = $800

$0

e.g. rent income pm in…[Read more]