Yes, as Corey said If you speak to the others and find out who is interested then approach some developer yourself you can add many thousands by cutting out the middleman.

Developers pay big bucks to people who source deals for them.

• This reply was modified 10 years, 4 months ago by  Catalyst.

I meant the right hand side of your block.
if the driveway is owned by council (or energy company) then really they should pay.

I would get the neighbour to contact them first and see if they ask you for a portion.

Ok. That’s clearer. If it was on the right hand side I’d say your calculations were correct.

It’s probably easier to assume your calculations though.

But- Who owns the driveway? Does your land finish at the fence or at your boundary?

If the energy company owns the driveway then they should pay for the fence as it’s half on their land and half of the neighbours. ie they should pay $3500 and the neighbour pay the other half.

If it’s a shared driveway (as in you both own it) you may need to pay half.

• This reply was modified 10 years, 4 months ago by  Catalyst.

That must be heartbreaking for your parents.

I doubt the daughter would leave and default on her loan. It sounds like she wants her money. Without strata titling it sounds like thy would have little option than to sell, unless they can borrow the money to buy her out. This may be possible as the rent would help but it may not cover the buyout ($460K?).
Don’t let it get to a mortgage sale. If they have to sell then do it before it gets to that. As they have no mortgare at least they’ll have decent amount to buy something else.
I hope it works out.

Hi, you are in a great position.

Have you read any property books? If no, start now (and read property forums). If you have, what type of investor do you want to be and what strategy do you want to start with. I say start with because lots of investors start simple then progress to more complicated ventures.

Firstly I would speak to a goopd broiker (not all brokers are created equal).

He/she will help you with what you can borrow and the best way to structure. I’m not a broker but the way I would do it would be to put your cash into the PPOR (Principal Place of Residence) and therefore have a smaller loan on that. Or better still put your $150K into an offset account on your PPOR. A broker will explain the advantage of this.
It’s always best to pay down non deductable debt (such as your home). Then borrow the maxmum for investing. Once you find out your borrowing capacity you can get started. Decide what type of properties you are interested in then start looking. I’d set up a LOC against the PPOR to use as deposits then borrow 80% attached to the Investment property. As I said I’m not a broker but that’s worked well for me. He/she may advise differentlty but avoid Cross Collaterising IP’s with you PPOR AT ALL COSTs.

Regarding companies beware. There are some good ones but there are MANY that just take your money.
This group is in Sydney and helped me when I got started. They are a buyers agency (as i they source properties for you) but they run fortnightly meetings near Parramatta for only $10. They or not pushy and don’t sell properties so won’t try to push you into deals. The meetingsd are informative and the topics are relevant and current. It’s also a great way to network with other likeminded investors. I think they are a great sarting point (even if you don’t want a buyers agent). You can talk to them and they will sit down with you and discuss your personal situation. There are a few good brokers that attend the meetings that you could talk to also.

Get there at 6.30 to chat before the meeting and hang around afterwards. Networking is THE key to success. Learn from others.

http://www.rightpropertygroup.com.au/

Good luck on your investment journey. Be careful it’s addictive. LOL

Who paid for the fence? Were quotes given before hand? Did you nost discuss it beforehand?

If someone else built it, how much are they asking for?

Your post is a bit confusing.

• This reply was modified 10 years, 4 months ago by  Catalyst.
• This reply was modified 10 years, 4 months ago by  Catalyst.

As Jane said- What bits are you renovating? Kitchen/bathroom (replace or do up)? etc etc.

One thing for sure is- you need to start the bathroom early. It takes time- strip out, plumbing, waterproof, tile, grout, put in fixtures. You cannot do it in a day like they show on TV.
Also- unless you want a flatpack kitchen, order that as soon as you exchange. It can take 6 weeks.

Yes of course you need council approval (for ALL of it).

You need to get plans drawn up and get approval to change your house from one dwelling to 2 dwellings.

You will most likely need a firewall between the 2 residences.

If you want to charge each side for water and to have their own electricity you will need separate meters for each.

There shouldn’t be a reason why you have to use a particular agency. The fees sound about right. You may be able to get 7%?

Why not ring some of the local ones and talk to them, get their rates and ask about their service. It’s not always about the % fee. You want a good agent. Check out their adds to see if they use photo’s their wording etc. Do their adds make you want to look at their listing?

If one agency takes care of “all” the rentals maybe it’s a good idea to use someone else. Especially if there’s a lot for rent. Why would they push your one over somebody elses?

Speak to a property accountat to make sure you get the proper tax deductions you are entitled to. Also check to see if you need to get a valuation on the property for when you later sell (for CGT purposes). If you do not buy another PPOR you can use the 6yr rule where you don’t have to pay CGT.

It’s good that you are thinking of your end goal but- Are you aware of the differences in costs along the way?
There are differences in land tax exemptions and lots of other things.
You may end up paying a lot more in the first 10 years to “hopefully” have a postviely gearedd property at the end. You may not even keep the properties long term, negating all the extra costs along the way.

As others have said, do your homework.

BTW- I would not be happy with a property that was negatively geared for 10 years. IMO that’s not a strategy that will see you retiring on rents any time soon. And I don’t put any cash in. I borrow ALL the costs.

• This reply was modified 10 years, 6 months ago by  Catalyst.