You might need to expand a little more on what non-profit developments are – and why you want to get into them (obviously not profit!).

Considering the competitive nature of property in Australia, especially in the development sphere, I’d save the vast majority of social based development is backed by State governments. There are some projects…[Read more]

Why invest in a declining market?

There are multitudes of markets in Australia – keep jumping across to the next viable option.

I would say the most of our most successful clients have built their portfolios this way – moving around between markets. Let’s call them Nomadic investors. :)

Why invest in a declining market?

There are multitudes of markets in Australia – keep jumping across to the next viable option.

I would say the most of our most successful clients have built their portfolios this way – moving around between markets. Let’s call them Nomadic investors. :)

If you’re thinking the market is sliding, why not wait out until this eventual collapse? Else you may find you buy well but have any ‘profit’ eroded.

Obviously if you had the property purchased for an exceptional discount (20%+) that would likely insulate from any issues, but the chances of success are going to be a lot lower than lowballing in…[Read more]

Government regulation largely insulates and reinforces the prices in Australia – primarily through planning laws.

Unrestricted planning laws would definitely be the biggest threat to most investors in Australia.

The historical average for rates over the last 30 years is circa 7.5%, so if you work back from this as a worst case and then compare against the reality you’ll have a good understanding of where the property sits on the risk/reward spectrum.

Another silly sale in one of my pockets of interest – Nailsworth 5083.

http://www.realestate.com.au/property-house-sa-nailsworth-120664725

Guide of 550k, expected to sell in the 575k range – sold for 640k prior to auction. Tiny kitchen which is falling apart, hallway bathroom with only a shower. Otherwise quite neat, but block too small to do…[Read more]

The changes in response to APRA have been rolling on for a number of months now – I originally wrote an article here: http://www.precisionfunding.com.au/apra-the-evolving-lending-climate-for-investors-challenges-and-opportunities/

In short borrowing capacity has reduced for all, maximum LVR’s for a large numbers of lenders reduced or restricted…[Read more]

Good way to look at it Pete – especially if you can use the funds to pay down your mortgage, freeing up equity for further investing.

Agreed – Supply/demand is certainly going to keep prices cool in a lot of these areas.

Hey Pete, what area is the IP that you’re currently selling?

Any reason why you’re offloading it in particular?

We rarely suggest pre-approvals as necessary or beneficial to the client, except in specific cases. In the industry they are known as sales tools more than a protection to the client – quite a few were voided across a number of lenders with the recent changes in lending rules.

Are you offering subject to finance? Get your broker/an investment…[Read more]

More that brokers who have years of experience and dedicate time for themselves and their staff get annoyed that there are fly-by-nighters who give advice to client’s based on what they read on a forum instead of doing in-depth research.

You’ve been in casual employment for long enough for this not to be an issue – have a lot of casual employees in our client list who have built strong portfolios.

It’s a reality that more and more of the population is moving to casual employment, and lenders policies have slowly been moving to recognise this.

“What’s going on in Whyalla?”

Absolutely nothing.

Absolutely nothing.

Numbers are fairly accurate, you would want to be estimating at a higher interest rate considering the current rock bottom rates aren’t indicative of long term averages.

In reality I wouldn’t be bothered with an ex-HT in Salisbury North, you’re looking at the bottom of the barrel for tenants in the area, whereas for a marginal amount more you can…[Read more]

mddedf: When you redraw funds, it’s counted as borrowing again in the ATO’s eyes. Tax deductibility is determined by the usage of the funds – so unless you used the redrawn funds from an investment purpose it would NOT be tax deductible.

This is where interest only with an offset account becomes so important, as you can pile the funds into the…[Read more]

That particular one was 2.5k for cabinets + handles. 2Pac cabinetry, soft close drawers blah blah.

Rangehood was $120, installation $660.

Splashback was $80 for tile, glue and grout. (it’s nice to get out of the office occasionally and get on the tools) If you were that way inclined and had some spare time, installation for these kitchens is…[Read more]