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  • Profile photo of Brian_qwertyBrian_qwerty
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    @brian_qwerty
    Join Date: 2007
    Post Count: 2
    March 12, 2013 - 3:57 pm

    Freckle,

    Found your frightening article while looking for a graph of interest rates (spoilt my evening :-) ).  I’m still thinking about it.  But in the meantime I’m refinancing some loans.  I would be very interested in your opinion on whether to fix, for how long, and most of all WHY.

    Thanks

    Brian

    Profile photo of Brian_qwertyBrian_qwerty
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    @brian_qwerty
    Join Date: 2007
    Post Count: 2
    January 8, 2013 - 2:31 pm

    I've done a couple of these in Perth, and agree with the above posts. Both of my blocks sold for about half what I paid for the original house. But the second one was twice the price of the first. That block took a lot lot longer to sell.

    For my next subdivision I will aim for a price point where there are lots of buyers. Time is one of the biggest costs, and can cause you to run low on cash, which is not nice.

    First house reduced in value by about 10%, second by about 25%.

    Consider if you can rent the house as soon as you buy to keep cash flow. That way you just get some negative gearing while you wait for the council, etc, etc. Get a tenant without small kids and who wont mind the works nearby.

    Talk to a good accountant before you buy, there are things you need to do.

    Always be nice and polite to the council even if they are talking rubbish! In WA they can be overruled if necessary.

    Get a good surveyor and be aware of any retaining which can be very expensive.

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