Hi Sonny, i'll start with what basics i know.  You will need to speak with the planning department at the local council and if you tell them the address they may be able to tell you straight away if you can do it firstly.  Maybe they will not allow a subdivision on a 600sqm block (maybe only single storey) depending on where it is located. (speaking from experience).

There are new guidelines in regard to if it is a 2-3bdrm you need to be able to have a car turn around and drive out forward instead of reversing up a long driveway (this takes up a bit of space) and i think you need 45sqm open space for a yard (in one area). 3yrs ago this wasn't the case.

In regards to a tenant having a problem with it, if you put it in the tenancy agmt that at some point the back may be subdivided (which takes a minimum of 3mths anyway to get approval) and their may be another dwelling erected.  You could offer a small discount off the rent or they may not care anyway if they work full time.  You obviously wouldn't want a tenant with children (due to safety).

This is all i know from my experience and my council. good luck hope it helped a little.

Hi Clovies, my personal opinion if it was me, i would not think any tenant was in a position in the current market to be negotiating with you on rent / terms.  If your rise is reasonable (i don't know where it's located so hard to tell) but i would think you should look out for yourself. 

I had a situation with a tenant recently where the boyfriend (on the lease also) skipped out and the woman neglected to tell us and fell 14 days behind in rent.  Well investing shouldn't be personal and i could of had a new tenant within 12hrs in the current market where it's located.  I gave her till 5pm the next day to come up with the rent or face being issued a notice to vacate.  Well the rent was paid and is now up to date.  It is not my place as a landlord to listen to stories of why the rent can't / isn't being paid.  I'm sure someone out there will not agree with this hard approach, but business is business.

Your property manager should be acting for you, not negotiating on the tenants behalf.  You need to be firm with the property manager, did he/she recommend an increase (they should be if it is under the median for the area).

good luck with it

Altona / Altona Nth / Altona Meadows are all completely different suburbs.  It's like comparing Williamstown with say yarraville.  Altona has properties selling right now for $500-$2mil where as altona meadows the top price is 500k roughly.  Altona north top price is around $450.  but they all buy you completely different things.  $500k in altona will buy you a knock down on 700sqm, A 4bd brick home on 700sqm in Altona Nth and a very nice brand new 4bd home on about 700sqm in altona meadows.  You need to decide what you want, can you live in an older house and do it up over time or do you want brand new now. would a townhouse suit your needs?

Back to your original question Suffragette – go to realestate.com.au and look up altona meadows and then look at properties in Altona Bay (which is closest to Altona but seperated by the golf course and Apex park along the beach)  Houses are older but worth a bit more due to the land.  A friend of mine just bought a house in Seabrook, it's not bad for your buck. just a thought.  PM me if you need more info or help or recommended reputable agents. I'm happy to help.

Just remember depending where you are buying your investment property, usually if it is a high growth / expensive area your rent return is a lot lower than say regional or cheaper areas.  Don't over extend yourself, you should keep in mind interest rates may go up and your IP will be negatively geared anyway.  Depending on what sort of investor you are, remember Higher capital growth areas equals more money out of your pocket each mth to cover the loan (even if it's interest only) and regional areas attract a bigger return but still usually only about 5-8% but don't usually have the same capital growth.

I am only offering this insight due to your PPOR being 100% loaned (and this is considered Bad Debt) where as IP's are considered Good Debt (especially if you are on a high income) but i think only if you can safely cover both.

Good luck, (i guess it's up to the mortgage lenders anyway as to what they will let you borrow)

Sorry Matt, i forgot to mention if you aren't working or at uni you could embark on a few reno's in some suburbs with growth potential and then rent them out and then in 10yrs time develop on the blocks for further growth and depreciation.  Suburbs close to any beach and within 10kms of a capital city usually are your best bet.  Research, Research, Research….Location, Location, Location…..

What a shame you have had some bad experience, that can be quite stressfull especially when you should be happy and excited about buying an investment.  All you can do is think, it all happens for a reason and the right property is out there somewhere for you.

An example i have of my own is where we previously had a 30 day settlement on a property which secured us a better price to purchase but the vendor stretched out settlement for 4mths!! (great for us) the reason was they had so much junk and furniture and more junk to move out.  I was concerned as to what state the property would be left in so we had our conveyancer send a letter 2wks before the final settlement telling them we expect the property to be free of junk and left in a clean order.  This worked for us as the house and land could not of been cleaner if i did it myself.  I made sure i inspected the property 1wk before hand also (driving 2hrs to do so) just so they new i was serious about it being clean.

Another example is where we offered a 30 day settlement (with a council) and our lower offer was accepted, we made sure we had a clause in the contract that stated we are able to show potential tenants through prior to settlement (as the place was vacant anyway) and that if after 30 days they could not settle we were entitled to rent out the property and we would pay all rates, bills from that date on.  It has been almost 7mths and we still haven't settled (that's coucils for you) and we have a great tenant which we have been collecting rent from since xmas. 

Let me just say that we have only had a win on both these properties after learning the hard way before.

Good luck with your ventures,

Blogs, i think you're being a bit hard on teachers. i know two teachers and believe me they mingle in private schools with professors and doctors.  Who taught you how to add up the numbers in your investments, oooh a teacher i presume.  Be constructive, we are all here to learn and share… not pick on newbies like we are AT school! 

We have several investment loans through Onedirect and we deal with one person and he is great, we have found their service and response time great and a good rate too.  We have found dealing with them over the phone and via email wonderful and easier for us than going in to see someone. 

We have 80% loans and it has been an easy process for our 30 day settlements.  We had one issue on one property where they couldn't settle and we were charged by our conveyancer and the seller and Onedirect reimbursed all of these costs promptly.

So far, so good ,

One more thing which is interesting…. my husband can remember when no one wanted to live on the Esplanade in Altona (due to seaweed smell) they all thought Queen Street was better, so hence why there was a lot of vacant blocks their and small cheap houses until a few years ago.  Who's laughing now, small 700sqm blocks sell for no less than 1mil and rising fast.  It's all a matter of perception, the seaweed smell is still there!!!!!   Keep in mind the new Laverton / Point Cook township that was announced not long ago.  First home buyers will be FORCED WITH NO OPTIONS into the outer west and of course they need shops, schools, roads, public transport.  I believe in good time Werribee will boom due to infrastructure improvements (on top of what is there now) and all the new schools in Point Cook and surrounding areas.  I wouldn't snubb my nose up at the West, we have a lot of improving to do, but when it happens – watch out.