Hi Devo76,I'd be cheesed too !Perhaps it was an oversite on behalf of your current PM, or perhaps the alrm bells should be ringing, as Xenia has eluded to above.I would very strongly but politely ask the PM what they are going to do about it.  If the property is being "held" for them, why haven't they signed a lease yet ?  When will this tenant s…[Read more]

Hi Pman,Mortgage Insurance usually is triggered by the LVR – loan to value ratio of your borrowings – and usually kicks in at or around the 80% mark, depending on the lender.  Therefore if you keep your total LVR under 80%, then there probably will not be any mortgage insurance.How do you keep the LVR under 80% ?  Either borrow less, or save m…[Read more]

Hi TK79,Maybe it's worth spending an equal amount of time in searching for a sensational Property Manager in your target area (Rockhampton, or where-ever) as well as a the property itself.As Newgen has already suggested, a Property Manager is potentially THE key ingredient – especially for non local Landlords such as potentially yourself.I'm s…[Read more]

Hi Devo76,I'd probably leave it as it is, but this is my opinion only.  If you set it all up – as you have done – and then get a pay rise, then you effectively get the best of both worlds.It kind of comes down to a choice – pay less tax now and thus not get a tax return at the end of the financial year, or pay more tax now and get a tax return c…[Read more]

G’day Reglinda,

A regular forum contributor – Dazzling – started a most informative discussion on this very issue entitled “Unmotivated Partner” in this very forum.

This discussion went on for many pages over several months.

This link should take you to it. Have a read, because in my opinion it was a great…[Read more]

Hi Dr X and Grossrealisation,

Thanks for your responses and suggestions.

I am not sure that I understand the full big picture in what you are both suggesting – make sure that agency agreements have lasped, or are cancelled in writing, and that there is no mention of the buyer (ie me) paying any agents commissions in the sales contract.

Once…[Read more]

G’day Padraicc,

I’m not totally sure, but in short, yes I think it is possible to do what you are suggesting.

However, if in the future you decide to sell, you will most probably be hit with Capital Gains Tax, due to the fact that the property will be deemed to be an investment, rather than your “home” which is not subject to CGT.

I am happy to…[Read more]

G’day,

Just thought people might like an update :

I still have not heard from the agent with the grumpy trousers on. And at this point I doubt that I will !! Excellent !

However, I have spoken to the Vendor – a couple of times – and the long and short of it is we have done a verbal deal together, and contracts should be signed later this…[Read more]

Hi Jindou,

The good thing about “numbers” is that you can get them to say anything you want them to.

You could argue that if you are redrawing on available equity in property A to buy property B, then “your” cash on cash return could be zero (because you borrowed the lot and paid in full).

Or it could be inifinty (because you borrowed the lot…[Read more]

Hi everyone,

Thanks for the fantastic replies and suggestions.

In regards to negotiating price – I am trying to take the “cheeky offer” approach as per Michael Yardneys newsletters, all the while being conscious of the Jan Somers concept of “pay a reasonable market price and you can’t go wrong” as well as the “you make your money when you buy”…[Read more]

G’day Going For Broke,

Another suggestion, if you haven’t done so already, would be to refinance your IPs with a Fixed Rate Interest Only loan, fixed for 3, 4 or 5 or more years. This will make your repayments lower, and also be “locked in” for however many years you wish it to be.

Also, fix the rate on a portion of your actual home.

This will…[Read more]

Hi JG,

APerry is right – absolute bare minimum deposit a bank would require is 30%, but quite probably more likely to be closer to 40%.

Body Corporate fees in these Melb CBD apartments are enormous – lifts, pools, garbage collection, gyms, etc. A “cheap” fee ( ie building with just one lift ) would be $200 + per month…yes – per month = $2400…[Read more]

Hi krs,

I, like Shwing, changed careers after a period of time furthering my education in between. I took the “leap of faith” after I did the investigation and found that the long term gain far outweighed the short term loss. And I was right.

If you and/or your partner have done your homework and research, and it all says to go for it, then go…[Read more]

G’day Maruco,

My personal opinion is to hold for as long as possible, and therefore there is no real “end date”…

With proper maintenance and regular care, properties can obviously last hundreds of years. Even a hastily built apartment block will probably last longer than you or I.

Everyone probably would agree with the concept of “If I knew…[Read more]

Hi Leoau,

4 weeks and the rest, probably. I live in Monash councils zone, and they want all you have mention, and more, even if you are just thinking about planting a rose bush in the backyard.

And this is why, if you caqn deal with the grief, your property will most likely go up in value. If it’s hard, most people won’t do it. If you…[Read more]

G’day,

Friends of mine live in Sydney, and they rented their house out for two weeks to a family from Finland during the Sydney 2000 Olympics for an absolute fortune. They suggested that we do the same during the Melb Games coming soon.
My initial research suggests that my family home in Mt Waverley would rent for $2000 plus (and possibly even…[Read more]

In response to Dazzlings comments – I don’t think it is necessarily a case of “dropping everything and giving the tennant what they want”. It is more of a people management, priority and decision making process. Some things on the tennants over the top wish list are exactly that – over the top. However, some other items may be legitimate things…[Read more]

G’day imooney,

There lies one of the many million dollar questions that can really only be answered by you…

Option 1 – Keep re-negotiating a new interest only loan when the old one expires.
Pros : interest only is cheaper repayments, and you can budget for an exact amount each month.
Cons : You never pay it back ( but in 20 years time the…[Read more]

G’day Shushar,

Yes, I agree that if an individual actually does want to buy property in a particular area, then a letter drop to the residents in that area is a great way to go. I have actually done it myself on one particular house that I wanted to buy – the owner actually got back to me and said “thanks, but no thanks.” Fair enough.

It was…[Read more]

I agree Aussierogue !

The other day in my letter box, I pulled out a typed letter from “Anna and Paul”, addressed to The HomeOwner c/o my address. It said “sorry to contact you like this, but we are looking to buy a house in your area, and if you are interested in selling, then please contact this particular agent at this particular agency and…[Read more]