Hi Sue,

I have had lots of dealings with councils in my work and I have learned to avoid them whereever possible.

They want all kinds of totally unnecessary plans and documentation, charge a lot of money and normally do not have a clue.

Ask yourself what could be the worst possible scenario if you do not apply. If you erect an illegal…[Read more]

I just checked out their website. I would be very careful.

The interest payments get added to the principal of the loan.

This means the property is not really cashflow positive. The hope is that the property value will rise quicker than your debt.

Would be interesting to find out if they foreclose if the LVR gets too high as the market does…[Read more]

“I’m not sure I would class adding and ensuite as not requiring council approval. Particularly if it is to be connected to Council services such as stormwater and sewerage.”

As long as you do not change the outside walls of the house, I would not go to the council for approval.

This is from the Randwick City Council Website:
“Exempt development…[Read more]

Oscar, there is no such thing as buying below market value. Whatever you pay IS market value.

I have found one property that was cashflow positive. It was a commercial shed for $235,000 at $1,800 rent per month plus outgoing. But it was only a periodic lease and I was not sure enough that I would attract a new tenant, so I gave it a miss.
I…[Read more]

That is a tricky one.

I would probably try to buy now. It will be really hard to predict when the market tries to cash in on the new road.

Do some research. What are the vacancy rates now? How high are the rents.

Spend time in the town and talk to lots of people (in cafes, shops, real estate agents, etc, etc). Get a feel if your assesment…[Read more]

That is a very good point tassie.

Considering the boom in nursing homes, maybe you don’t even have to subdivide, maybe they would love to buy the land off you and all you have to do is move the boundaries.

I would approach them informally. Firstly find out who owns the building and who owns the nursing home (maybe two different parties). Then…[Read more]

Good point demkel.

Some more hints:
Don’t rush into anything. Talk to lots of people (morgage brokers, accountants, real estate agents, friends, etc, etc).

Read books about investing.

Research different areas to determine which may be good for investing.

Look at lots of houses in different areas and how you could make them work.

The more…[Read more]

To access equity in your own home, you must increase your loan. As you are already over the 80% mark (and I assume you did this recently), you may have trouble accessing more.

If you had the property for a while and the value went up a lot, yes you have to either refinance or increase your morgage with your existing bank. It would definetly be…[Read more]

thanks millions, millions

A couple of really good ideas coming through. Here is another one:

– If you know somebody (eg a friend of your parents) that has an IP, they may be willing to give you a rental reference. But be careful that you do not go to the same agents with this reference that you told last week you never rented before.

The key is be creative. Good Luck

There are certainly ways around it. Eg I believe that if you own the trust but your wife (if you have one) rents the house, you are legally not renting and can treat it as an IP.

But I will certainly pay to check with your accountant.

Depreciable Expense means that when you buy an expensive item in a business, you can claim it over several years in your tax return. Eg if you buy a TV for $1,000 and the ATO says that if can be depreciated at 25% you can claim $250 off your income each year.
You can also claim depreciation on your floorcoverings (carpets, vinyl, etc), curtains,…[Read more]

Rental Yield is calculated yearly rent/purchase price

Rule of thumb is you need 10.4% (weekly rent is 2x purchase price/1000) for positive cashflow.

You will not find many properties that you can buy for positive cashflow these days. Some comercial properties may be, but only because the lease is about to run out or it is a periodic lease.

To…[Read more]

If you use a vehicle of over 1 tonne, you can normally deduct 100%.

I would strongly advise you to make a list of all the things you want to do and find a good accountant with knowledge in real estate investing.

Run your ideas past him and get his opinion on the best structure.

Important points to explain to him:
– are you having a buy (,reno)…[Read more]

thanks guys, will look into it

Thanks bootlace, that was what I meant. Appreciate your clarification.

I appreciate your comment wayne. According to my broker I do not have to declare my income, but so far I did not need a lodoc yet. It will be interesting.

Yes, but the agents either follow instructions or have their own criteria.

The idea of going with an older person has a lot of merrit. Sometimes it also helps if you can get somebody (normally mum or dad) as a guarantor.

Where have you been living before? If you shared a house with friends, you may be able to get a reference from them and/or…[Read more]

Are you trying to buy a PPoR or an IP?

Because I think it is very hard to make money from land packages. Somebody else is getting the profit for their work. If you want to make money, look for deals that you can improve. Remember Problem + Solution = Profit

It is up to you.

I believe that a building inspection and a valuation is a very cheap investment. For about $250 each you get peace of mind and more importantly avoid real lemons. If you only avoid one $5,000.00 mistake in every 10 houses you are ahead.

The other advantage is that you have some real bargaining power. with a known fault or a…[Read more]