HiI'm suprised you're finding an abundance of positively geared properties for sale given the current climate.  So the house you're about to buy for $405k has to be returning rent of 29.5k per annum or $600 per week to cover the interest rate?  Seems high rent for country towns but if so good on you.Carpe

Hi NathanFrom a basic mathematical aspect most investors want to buy a property that is going to given them 5% rent on return or higher. Your property is returning 40k per year hence the property might be attractive at 800k (which is 5%) to some investors. Most of us look to buy properties that return a higher percent return on our investment…[Read more]

Hi AndrewI would leave the debt on the investment property ie the unit.  You owe 70k so the interest per year is about 6k including rates, mtce costs and the income is about 4.5k so not much of a loss that reduces in a small way the tax you pay on your work income.  In my view your primary goal should be to have no debt on your home (it is not a t…[Read more]

Thanks Bec.  Xenia.  I'm not certainly expecting anyone to hold my hand on this and I'm not expecting magical answers from anyone.  However this site has always been an excellent source of inspiration for me and I'm sure there are people on it that have done things like I am now pursuing.  Where I have got with my property wealth has not been eas…[Read more]

Hi BJA lot of the discussion on this is very interesting. I have been investing in property for years and have done very well. I have done some calculations on your situation based on the kind of modelling I used for my own situation. I am just providing some feedback but of course you need to get formal financial advice before you make a…[Read more]

Thanks ProDev and Redwing.  Just to clarify a few things.  My home has no debt (net 1.2) and investment properties have debt of 475k (value 1.1 and net 600k).   The  30k income  is from these properties (7 to 8% yield).   My plan is to sell the home in 3 years as it is in a 3 storey redevelopment area in a premium Canberra city location (or eve…[Read more]

Trajik…..thanks re suggestion to consider SMSF. I had not considered this at all. Currently I just use Comm State Super Fund and have the investments spread over a range of investment options like Aust Shares, Global Shares etc etc. Compared to a SMSF approach this may be weak way to operate as I I guess I can do much more with SMSF including…[Read more]

Oops ignore the last para of my previous shorter version and forgot to delete it…..I abandoned the shorter version to give you a bigger picture
Carpe (it pays to preview submissions!)

You mention for investment purposes so I’m not sure you’re buying it to live in? If you are the two important things for you is to have a low mortgage and a property that is in the best location to assure you of capital growth. You have to like the property to some extent if you plan to live there a long time ….be it brick, fibro…..in the…[Read more]

Thanks Bruham. Like the developer who cannot develop his two blocks without my consent I cannot develop my block without his consent. He may approach me in terms of putting together plans for approval of all 3 blocks (my block with plans to suit me) and I could then develop my block separately. He has more to lose of course in waiting around for…[Read more]

Well surprise, surprise I got a registered letter from the developer today expressing that he wants to buy and make me an offer if I’m seriously interested. I expect this will lead to a sale. Thanks for all your comments…..I just love this site especially the generous contributions being made.

The sale of this property shows up the…[Read more]

Thanks Stuart. In fact I wasn’t interested in purchasing but tried hard with the daughter to get her to list it with a Real Estate agent rather than dealing directly with the developer. However she caved in worrying about the cost of using an agent and perhaps no one else interested…..it being the middle block or meat in the sandwitch. She…[Read more]

Thanks APerry ….I have already given him a high ‘price’ but he has not made contact again to negotiate so I do think the ball is in his court. I’ll ponder your view however and make a decision in the new year.
Cheers
Carpe

Thanks for responding Wanelad, APerry and Mathewc 73.
He is a professional developer but as I’ve discovered today he has actually rented out this new addition. He bought the first property about 4 years ago and has been renting it also. There is nothing he can do with the two properties unless he has my consent hence it has increased…[Read more]

These kind of investments are available in Canberra. I’ve seen them advertised around the 120k price and I recall seeing them about 2 years ago for 100k so they do seem to have a good capital growth as your example also shows. I’ve never got into this type as I’m more focused on the land as others have said. It does look like a good investment…[Read more]

Sorry for lodging this question….I just noticed “Rexilla” has raised this question for a Brisbane property just a few down from mine!
Carpe

Hi to All
This has been a most facinating topic as I’m about to enter into borrowing off equity to live. I raised my alarms of my poor cash flow but a fairly high level of equity on this site quite recently seeking help on what to do. My problem has been a quick exit out of the workforce because of a brain aneurysm operation and other…[Read more]

The best way to do a rental is on a monthly basis to be paid on a specific date each month. If the rent is $200 per week then multiply it by 52 weeks in year and divide by 12 for months of the year. That comes to 866.66 per month. So if the new tenant moves in on 10 March then he/she is to pay up front 866.66 and then until the lease expires…[Read more]

In my view if you’re going to be working for a number of years and really want to make money in property then forget cash flow and focus on location of the property in terms of growth. Whilst a 10% yield on say a property that you’ve borrowed the whole purchase price of say 300k on gives you a positive return. That is, 30k pa (that’s a rental…[Read more]

Dear Derek, Zeng, Colin, Terryw, Benny, ptn and Marvellous Milly,
Just a note to let you know I haven’t forgotten you! I’m pleased to tell you I’m going quite well after two more medical procedures on my head – radiation for benign but pressurising tumour and transposition of the nerve that controls the left side of the tongue to elsewhere in the…[Read more]