It’s called Vendor financing,. Google it.

What is the incentive for the vendor to give you a 5% discount and no recourse if you back out of the deal? Because you’ve paid no deposit.

Banks usually require proof of savings also.

You can ‘t pick one house in a sub urb and work out what the suburb is doing.

Sometimes people sell properties to relatives or their company cheap for tax reasons.

The Penrith one may have had a major renovation. Although a capital gain in Penrith of 400k in the last 2 years would not be uncommon.

I’d say that was pretty typical of…[Read more]

Ok so it’s approved as a games room. So it is NOT approved as a grannyflat, ie as habitable dwelling. Be careful then when dealing with council. If they are friends could they not share a letterbox (and bins?)?

I’m surprised your insurance company will insure it as one dwelling when it is rented as 2 dwellings.

I could not find any that…[Read more]

Terry what is your book called? Where do you get it?
Thanks

Selling in a boom is obviously the best time. Heavy bidding drives the price up.

But it really depends on your situation. Will you be buying a new home? If so your buy price will also be high.
Can you buy before selling this one? If so buy before the boom then sell this one in the boom.

There are buyers markets and sellers markets. Obviously…[Read more]

You need to speak to a property savvy accountant ASAP.

You can claim all outgoings on both properties if rented out. And also declare the rent on both of course. You can rent out the PPOR for 6 years without having to pay CGT. I’m not sure about your tax because you are not an Australian resident. That changes everything.

I doubt you’d be…[Read more]

Hi,
Is the granny flat approved?

If not be VERY careful. Insurance will not cover it and if there is an accident you may lose everything you own (and then some).

Ok so I’ll assume it is legal.

You cannot rent separately if the power and water are not separate. If it is together most people just rent as a whole then the tenants sublease the…[Read more]

Work out what the net yield will be for 2 $350K properties VS one $700K. That way you know what the holding costs will be. Lower priced properties often have a better gross yield (but, as mentioned factor in rates etc) to get a NET yield.

Holding 2 cheaper properties helps alleviate worries for new investors. What are the chances that both will…[Read more]

Yes think 5 people is too many.
Maybe for a short buy/reno/flip but not for buy/hold.

What happens if the couple separate or one person gets in a relationship and wants to buy a home?

Even with a trust or company people change and go in different directions.
If you simply cannot go it alone maybe just get with one other person. But you…[Read more]

No, I’ve only heard good reports about Granny Flat approvals. He gets lots of customers from Somersoft forum. He’s a regular poster there under the name of Brazen. He has been very helpful to people asking questions on forums.

He was very helpful to me when I split a house in two.

Rents were not typically $400+ a week in Mt Druitt. I don’t know where you got those figures. Or are you talking a different Western Sydney?

Rents rose sharply in 2012 and have been steady or down a little since then.

It’s all part of the cycle.

Rents rise, sale prices rise, wait a little while and rents will have another rise.

In order to…[Read more]

Friends of mine used

Granny Flats Sydney – Use The Experts

If you are going under SEPP you are limited to 60sqm so I wouldn’t try to fit 3 beds in that. I think 2 bedroom is great. Layout is most important though. No use having 2 bedrooms if there is a tiny living area.

Read the website it has lots of details about things like that.

Make…[Read more]

I’d recommend speaking to a good broker.

I know with a few units I have, upgrading fire ratings have been an expense. Mainly adding fire sprinklers etc.
I don’t think anyone could ask to build firewalls etc (which are the current regulations). This would mean MANY buildings would need to be demolished. But you do need to comply to basic regulations.

You need to ask Council if the…[Read more]

Unfortunately you just missed one on 27th October.

http://somersoft.com/forums/showthread.php?t=84714&page=14.

I think they meet regularly. There are a few investors in Addlai de on that forum

Also Google meetup.com and type in property Adelaide.

Good luck. It’s great to network with others, its hat gave me the kickstart to get going.

Thanks for the clarification Corey. I read somewhere it eas double. I knew it was bad but not that bad.

I know early on when money was a bit tighter we were told to get rid of one of our credit cards even though we paid them out each month.

Banks count your credit card limit as double when applying for a loan.

So if you ave $20,000 limit on a credit card the bank counts it as you having $40,000 loan do this will affect your borrowing capacity.

Keep thinking. Or you could just work more and save quicker.
Or look for ways to add value to the property you be, revalue, withdraw equity.

I really doubt that you would have to pay CGT from the beginning. I would seek advice from a property savvy accountant if someone doesn’t steer you to the legislation here.

My thinking would be that you would get a valuation done when you build the granny flat and CGT would be calculated from there.

I’m interested in this as friends are doing…[Read more]

I’m assuming you want to have it 50/50 as you are both working and getting tax benefits because of the property.
Let me guess, one of you will not be working later when you sell so you want it all in the persons name with no income?

Changing it for those reasons is called tax evasion and is illegal.

You can change it later but you’ll have to…[Read more]

Hi, Congrats on the bub and the new car.

The $30,000 loan will also restrict your borrowing power. I’m assuming it’s high interest. Get rid of it.

OK the car- yes a new car is nice but will it do anything the old one won’t? In the end it come down to what you want more financial security or a nice car. To me “things” don’t give me as much…[Read more]