All of the above are good points. I know that some councils have rules that residence with more than 5 occupants are classed as bording houses.

So my understanding is that if you have a four or five bedroom house it could be very legal.

Talk to the relevant council and find out. Also talk to the insurance company to ensure that you are…[Read more]

And how do you find good buyer;s agents?

Good question, I have not heard an answer on that one yet. Also where do you find good buyer’s agents?

There are heaps of organisations supplying this for a price.

I know a SA site that provides 10 years of data for free up to 2003: http://www.upmarket.net.au/chart/ChooseChart.asp

The site below provides general statistical data, which is quite useful when assesing different…[Read more]

If you do not feel safe there because of the previous tenants, plus the skill and time that a good real estate agent will invest into your property, I would strongly consider paying the 2.5% for the agent.

To find a good agent you may want to go to some of them as if you were looking for property. You will very quickly get a feel for them. Then…[Read more]

I would certainly advise you to get it independently inspected (especially if they are friends of yours) after it is finished.

Remember BUYER BEWARE.

Even if something is wrong which the builder has to rectify, a building inspection will save you a lot of hassle down the track after money has exchanged money..

I suggest you make the contract…[Read more]

Richard, what is GR lending?

And did you mean my example is standard practice? Because I understand if I buy a property and build a house, you get finance on land and house price combined. But here I only pay $240,000 for the property, but will get loan on about $400,000 after subdivision plus extra for houses.

Please clarify.

I agree with the above statements.

I have my own business with 12 employees, which gives me a different kind of perks.

I do not intend to give it up, but rather spent my after hour time to build a nice portfolio.

Another point Chris.

If you purchase through a trust, I advise to make the loan in the trust name with you and/or your partner if applicable as guarantors, rather than putting the loan into your name. The banks do not care, but it may affect future loans.

I think you and terry are right, but I give you my current project as an example where I should get finance on valuation, not purchase price:

– Offer made now with 12 month settlement period.
– Subdivide property into 5 parcels over the next year.
– Get new valuation and five loans for existing house and four new parcels with building contracts…[Read more]

FHOG rules are dependant on the state you live in. EG in SA you have to move into the property within 12 month of purchase and live in it for at least 6 month.

Check out http://www.firsthome.gov.au/ for further information.

I am from SA and buying in SA.

As far as I can see there a no straight forward cf+ deals around.

But I just found a property in a regional town with 3200m2. It has a 1920’s 4BR house on it which needs some TLC and a stone granny flat which needs a complete internal fitout. I expect to subdivide it into 5 properties, build 3 more houses , keep…[Read more]

Try this as an approach:

Buy a cheap house needing TLC on a longish settlement (3 month) with right of early access.

– Do the house up with minimum of expenses and maximum of effect. Their are several strategies to make this successful.

– Get the house valued before settlement to increase the needed funds or onsell it before you even have…[Read more]

Richard,
this seems to be an issue where you and Steve are miles apart. I am trying to sort through this myself.

Steve says at several occasions (especially book 2 pages 114-115) that he believes selling is a very important part of his strategy and he believes that it helped him grow so quickly.

Steve calls it multiplication by division and he…[Read more]

Hi Unreal,

while everything Richard says is true, I do not agree with the never sell attitude. Read Steve’s 3rd book where he gives samples and suggestions. He has an exit strategy for each and every property. In my understanding this is twofold.
1. If a property does not perform to his expectations, he gets rid of it.
2. If he had a lot of…[Read more]

Give the newbies a chance, they want to learn. [grad]

For me the scams are most annoying. [grrr]

I am happy to answer any question even if it was posted 1,000,000 times before. It is very hard for newbies to go through old topics and try to dig out the gems they need for their current situation. [strum]

I think if you are looking for capital gains, now may not be the best time to enter the market.

I am in the moment looking in regional centres with the aim to renovate and subdivide. I am following the advise from Steve’s third book. He calls it Problem + Solution = Profit. I rather call it unlocking the hidden equity in a property.

By doing…[Read more]

Totally agree with Marc.

Also be aware that the market has flattened. Don’t expect the 17.4% to just keep going. I heard of house in Sydney the other day that was bought for about $450,000 a couple of years ago and now had to be sold for !!!$270,000!!!!!!!!!

I think in the current market you are better off looking for something with good…[Read more]

Steve Knight’s book are a good start, especially the 3rd one (0-260+ properties in 7 years), but there are heaps of others.

1. As a rule of thumb you are right about land going up in price.
– Apartments may give you better cashflow.
– Apartments are often strata/community title (you have to deal with others parties and a different set of…[Read more]

Lets agree to disagree.