@crj : no I didn't factor in the interest, that's a good point from a purely financial perspective.  I think all told it would have swallowed about $100k in cash during the ownership period.   If this was in the bank earning interest, after taxes, there's probably $10,000 there.If I had rented during this period and put that $100k into, say, a re…[Read more]

Scott : add back in the lost weekends searching for a new place to buy and the removalist problems for that, and it's about even.devo76 : it's not necessarily a no brainer.  Sure, convential wisdom is that it's a no brainer, but I doubt many people really sit down and work it out.  For some people, in some situations, it's better to rent, p…[Read more]

I've enjoyed reading this thread, but I'd like to address the other side : property supply.  There clearly isn't enough properties in places where people want to live.  This is because the state governments have a monopoly on handing out licesnses to build a residence.  Monopoly = shortage to keep prices up.  Everyone is in on the game, inc…[Read more]

Expected result of a joint property investment??= tearsUnless you have in writing an agreed plan on what to do when:- one person needs to bail on the investment- how the property will be valued if one party wishes to buy out the other.  Who pays the stamp duty on transfer of the title into one name and the associated costs – is it the buyer or…[Read more]

Well my answer would be – where can you make the best return on your money.  If you can exceed the 12% interest with your investment, then you should invest the money as you will earn it back at a faster rate than you pay the interest.However, this has a caveat : it must be a SURE 12%+ return, not a 'hopeful' or prospective return.  If there is a…[Read more]

I don't want to sound too presumptious, but given the continuing tax cuts on offer by both sides of the political spectrum, are you paying that much tax now?  Yes I agree that tax should always be avoided where legally possible, but doing complicated transactions to 'save tax' needs to be looked into very carefully – don't end up spending $1 to…[Read more]

Given you can't get out of the current mortgage, and you aren't planning on doing anything for 3 years anyway, I"d consider paying the maximum amount off your mortgage.   Many mortgages now allow a small number of redraws per year of built up principal above and beyond the payment schedule, so you could always pull it back out if necessary (for i…[Read more]

Under my stairs is a lockable cupboard.  You can fit all sorts of things in there, but you do have to leave room for the door to swing…

The post topic should really be 'never do any type of investment strategy that doesn't suit your personality and investment goals'.Handy people who love getting their fingers dirty will always find renovating an rewarding experience.Desk jockeys who like to think and analyse will always regret opening a tin of paint.Neither is right.  What is…[Read more]

Well I live on the Sunshine Coast in QLD, and we have very good rainfall and full dams.  Maleny is a very lush, green area and some people are attracted to that, although I see it as 'bonus' issue rather than the whole reason.  What I mean by this is that people who are already thinking about moving to somewhere like Maleny will justify it to t…[Read more]

One thing not answered so far for you was to do with Capital Appreciation.   The scarce thing in Real Estate is Land.  Realistically, the only thing that makes Real Estate go up in value is the scarcity of the land underneath the building.So in terms of Residential vs Commercial, the major determinant of capital appreciation is (a) how de…[Read more]

Nothing wrong with renting to friends. It’s just very difficult to ask friends for money when things go bad. Just realise you may have to face a moral dilemma one day. Sometimes it’s great to forgive a debt to get a friend back on two feet if they do fall into trouble.

So I think rent away – but make sure you fill out a proper condition…[Read more]

Think about your extended family and friends. There is probably someone in that group who has made a bit of money from real estate. Maybe a long lost uncle, a friends’ parents, and old boss – someone.

Ring that person up and ask politely if you could come and see them and have a quick discussion about real estate investing. Unless their heart…[Read more]

Frankston probably has markets within markets. My sister lives in Frankston and has a large home on a large parcel of land, surrounded by large homes in a peaceful verdant street with views of the bay. It is all very pleasant. HOwever I tell other people from Victoria that my sister lives in Frankston and they look at me with pity, as though…[Read more]

Just to add to that…

The price of anything is determined by the supply of the thing and the demand for the thing.

The supply of land in any area is fixed. You can’t create more land. The supply of houses is not fixed. You can build pretty much as many houses as you like. Even on the one piece of land – it’s called a highrise.

The demand…[Read more]

I think you’ll find that most agents won’t reply to email enquiries unless they look particularly tempting. They probably get a couple of hundred emails per day, and if someone is overseas they aren’t likely to be seen as a ‘hot buyer’.

I don’t know what format you are sending your emails in, but I’d suggest compiling a short list of agents in…[Read more]

My sister put vinyl wrap doors in her kitchen about 7 years ago, and she swears she’d never use them again, but I think they don’t look too bad.

The thing with any kitchen surface is that it will depend on the treatment. You can get 20yo laminate that looks OK if it was in a decent colour to start with, and if it has been looked after. 2 Pack…[Read more]

Are you talking about the complete block of flats, freehold? If that is the case the flats every time. It’s not the house that makes houses better investments than units, it’s the land underneath. With a single unit in a strata titled investment (flats, townhouses, apartments ect) you only get a fraction of the value of the land underneath.…[Read more]

Firstly, an agent must present all written offers. Remember that they are a negotiating professional, while it sounds like you aren’t that experienced in price negotiation.

As already answered, write down your offer on a contract for sale, attach a $1000 deposit check to it and instruct the agent to submit the offer. Whether you seem keen or…[Read more]

…not until I’ve had my two cents…

I think everyone, especially younger people, should firstly forget about ‘baby boomers’ and ‘gen x’, ‘gen y’ etc. This is all just marketing BS that someone made up so they could stereotype a whole generation.

The same with median house prices. It’s just a statistic and not a very good one. Where I live…[Read more]