The West Sydney market has already boomed heavily, I’ve had revals on clients properties rise 75-80k in one year in these areas (20%+ rises).

If you are concerned about yields, I would be looking interstate than Sydney at this time. Brisbane still shows growth potential and OK yields (after factoring the holding costs), Adelaide is chugging along with strong yields as per usual and the larger regionals of NSW look OK – but whether there is going to be price appreciation in the meantime remains to be seen.

There’s great investments all over Australia, the key however is to establish your strategy. An investor with a strategy early on will achieve a lot more than someone using the scatter-gun approach. Find something that you’re good, and do this repeatedly. I find this has been the unique factor that the most successful investors do.

Unfortunately I’ve yet to meet a person with a 100% accurate crystal ball. :)

I’ve had a lot of clients buying in those areas recently, and I can understand why. Some of these properties are selling for discounted prices to what they had sold 4-5 years earlier, whilst rents have tracked upwards. Prices have been rising back up to make up for the low bases prices are coming off.

I’m still a huge fan of the outer northern suburbs however, where you can buy large developable, cash flow positive properties – many of these have renovation potential.

But horses for courses, there are a lot of options in sleepy old Adelaide.

at 84% LVR you should be near at a point of being able to access more funds in no time.

Very hard to quantify, it comes down to what profit value any developer can derive from this deal. If I were in this situation, the best I would hope to do is work collectively in approaching a number of large developers with the ability to option contract the entire area – letting them know there are multiple parties being approached.

Once the funds are used and balance owing, interest will accrue. As the loan would IO and on a monthly cycle, the next payment cycle interest would be charged.

Added you to the list. :)

I find the easiest way clients establish their strategy is to find their goal and work their way back. If you know where you are currently (start of the journey) and the goal (end of the journey), it’s a more manageable case of working out the easiest way of going from Point A to Point B. It’ll all come to you as time goes on and you grow your knowledge.

Pretty uncommon for clients to purchase in a trust, less than 10% I’d say. Usually they are self employed and looking for asset protection, or income splitting in *some* cases.

Financing trusts isn’t that difficult generally, just an extra layer of paperwork and supporting documentation. Hybrid discretionary trusts have a very small range of lenders who will lend to them and have fallen out of favour with most investors as I’ve noted. Unit trusts have a large numbers of lenders who are happy to finance through them, and discretionary/family trusts are as common as it gets.

Buyer beware. Generally this goes terribly wrong, as you’re both tied to the hip financially. What happens if one person wants to get sell but the other doesn’t, or if only one party wants to access equity for another purchase etc.

What if one partner gets a nasty ex who tries to take half of their share?

By both being on the loan, you are both liable for EACH portion and most lenders will look it that you receive 50% of the rent, but 100% of the debt – which in turn affects your serviceability moving forward.

70k is a reasonable deposit, you’d both be able to make your own purchase individually and not have any of these potential risks.

My understanding is that you also would have had to have claimed it as your PPOR initially at purchase, then move out at some point and rent for up to 6 years.

Better upload a pic. It could either just be corner protectors for transport, it might actually be required to stay on. :)

If it takes more effort to manage the manager than to self manage the properties yourself, it’s time to move on.

The big thing for me is maintenance requests, a PM should be able to handle these to make sure any *real* issues are resolved quickly, but also filter out any unnecessary requests/issues.

You pay for a PM to make the investment as hassle free as possible, after all.