Totally agree.  $220 is cheap to sell though, must have needed work. Many are over $260K now (not that I'd pay that).

That's OK. More for me.

But why would you buy in a country town and "hope" for capital growth when you can buy in Sydney. As Terry said- plenty under $300K with 6% yield. I do a quick reno and get 7.5% yield on mine plus an instant $30K increase in equity. So even if it stays flat for years I can sell and still make a profit as it's costing me nothing to hold.

Everyone has different investment strategies though. Buy what you are comfortable with.

So is your house worth more than the median?

If it's worth $350K that's only a $20K increase so only an extra $16K to borrow which won't go far.

You may need to wait a while longer unless it's worth more than the median.

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As Scott said.   But answering your question- It depends on the area and what the expectations are by buyers and renters.

We recently bought a house with a small bathroom and separate toilet. Normally I wouldn't combine them for a house but by combining them we can add a freestanding shower (instead of over the bath) and this outweighs the advantage of the separate toilet.

Unless there is some gain by combining them, don't.

Where did you get the $50K from. He didn't even say how much the property costs.
Assuming it was $800K holding costs would only be $50K if it took a year. But they are not paying rent while they are doing it so it's considerably less.

It's doable of course (lots doing it already) but make sure you take into account ALL costs to determine if it's viable for you. You can make big bucks with more expensive property but the outgoings are a lot higher.

I have used a buyers agent twice. I have found good properties myself but needed a break from spending all weekend (and nights) looking on the internet, ringing agents and going to opens.

Now everything they presented to me wasn't wonderful but I did get 2 under market places. Yes they were on the internet but I would have overlooked them due to poor marketing.

One the BA had negotiated a 12% discount (on market value). Doesn't sound like much but it was more than 6 times their fee.

I was not particularly interested in auctions (I could do those myself) BUT the BA did get one that was so badly advertised that no-one else turned up. The BA got a call telling him to be there as no-one else would be there and there wasn't. BARGAIN!!! There have been a few like that.

This is how they do it. Networking and time on the floor. Who has that time? Me sometimes but not enough to purchase often. Plus while I'm renovating I don't have time to search for the next one. It's good to know someone is looking so if a bargain comes up I can grab it with very little effort on my behalf.

So basically I do my own research and buy stuff myself but the BA looks too and rings me if something comes up. Best of both worlds.

Maybe- If you have to wait until you make a good couple of mil before you give to charity I'm willing to bet you never do.

If you have money to spare to invest you have money to give to those less fortunate than yourself. Pity everyone if only millionaires helped charities.

Agree with above. Ditch him. He obviously just wants you to take out the max loan through him.

The only way the LOC is an issue is if you mix it with personal use. If it is solely for investment then it is tax deductable. What makes it tax deductable is the USE of the money.

Just go to the bank and tell them you want to access your equity for deposit and legals on an IP. AND you want a separate 80% loan on the IP.

Mario everyone is different. Some people have more time than money. Others have more money than time. So that's why investing is different for everyone. You do it the way that suits you. There is no right or wrong way.

As you said the numbers need to work. Bottom line. I have a friend who buys similar houses to me but he pays people to do the work. Sure it costs a bit more but he earns a lot more than me at his job (long hours like yourself) and spending days/weeks on a reno is not financially wise. I have time so can do it easily. Liking the reno process has a lot to do with it too. Life is too short to waste doing things you don't like.

Good luck with your journey.

You can just ask. You may not get an honest answer though. Ask if they want a quick settlement. That is good info to have. They may have bought elsewhere and you can negotiate around that. The more info you have the better your chances for negotiation.