What about dual income – ie house + Granny flat ? we have just purchased one, with a 8.5% return. We have done a quick facelift to increase the rental on the GF from about $160 p/w to $190.

HI Chris

Everyone’s situation is different, you would have lots more to consider than just the “1% rule”, that’s for sure. Have you read investing books? Lomas, McKnight, etc? and scroll through the forums here as well and you will find heaps of info, different scenarios and people who are generous with giving advice/sharing their point of view.

Hi Tony,

You should probably ask your accountant, but just so you know, the stamp duty isn’t a borrowing cost. It is not claimed a deductible expense against your rental income, but it becomes part of your cost base, and only comes into play if you sell. to offset your capital gain.

We also bought a property this week, so it will settle 18/6 I…[Read more]

Hey Phorsha
If it’s any comfort, i am aware that property managers in Perth/bunbury area are a lot more expensive than what we were used to paying here (in and around Brisbane). We were surprised too, and tried to find a better deal, but didn’t really get anywhere with it. It was a family member’s property, I did the bookkeeping for the property.

oh yes, done all that, thanks. I haven’t fully looked at the tools on there yet.

I guess the idea with that report might have been that you can see the longer listed properties and maybe have some bargaining power. But no one has ever menitioned SQM on this forum except for the vacancy stats. So thought I’d ask.

Ta

GOM, or anyone(?)
As you mentioned SQM above, have you used their “home discount reports”? Just wondering if it is of value if one is researching an area?

Thanks

Jeffro, see how you go but maybe you should start a new thread with your question? this one may have been started by someone just trying to sell valentines day presents!

Hey, if i could find a PG property that wasn’t mining town, we i would definitely buy it in my name, or do a trust. Just not confident enough to buy in those areas at the moment.

You have started to pay off your capital on your IP’s? Good for you if you already own your own PPOR outright. We are still working on ours, so our investment loan is…[Read more]

House Call, you are very lucky if you already have 2IP’s which are positively geared (is this what you meant – you are making money, cash in hand?)
I thought from your original question that you were just starting and so on? I am a bit confused.

If you can go out there and buy more positively geared properties in your wife’s name, maybe you…[Read more]

I believe that technically, positive gearing is when the income is greater than the expense(implies you have borrowed, when you use the term gearing). The income is taxed. If you make a substantial cash deposit, you would likely have this situation.

Positive Cash Flow or CF+ as it is referred to sometimes, is when your rental income plus your…[Read more]

Good for you for not signing!

no worries, I appreciate the discussion. It seems most people here do go through an agent these days, not sure what the history of that is as only been an owner a few years.

So far we have always met and known our tenants as well, as we are not just sitting around making money, we are hands on. So it’s people in the end, not just money that…[Read more]

Hi PT,

Interesting to hear your perspecitve. I think you are right, the agents can make or break the whole thing. I do find the that ‘rental manager” we are using is getting younger and younger and the other girls in the office are very young too, so no doubt they have not much perspective for either the renter or the owner.

From the owner…[Read more]

DD, Thanks for that, we are real DIY people, but sometimes that translates into some things taking a REALLY long time to do, or worse, not getting done at all.!

yes, thanks

ok, there are 2 Punchbowls in NSW, 2196 (sydney) 2460 (hunter and north coast area). I aasume you mean the 2196, but thought I’d better ask.

GOM
Thanks for your reply, yes we do have an experienced broker, recently helped us to set up better than before.
looking at the stats that were talked about earlier in this post, it was helpful to note areas which are projected to decline in growth, or minimal in the coming years around QLD and NSW. Lots of areas tipped to grow massively.

We…[Read more]

GOM
You must be pretty experienced with what to look for, and you have areas that you are comfortable with. Or do you buy all sorts of properties in all sorts of different areas? Do you invest fultime, and for how many years have you been doing this? I am interested, because i want to learn myself, and not have to use buyers agents etc. Though I…[Read more]

yes same one I found. thanks

interesting, yes, know those areas well.

i see on your blog that you have the NSW Population projections – interesting info there.

I’m going to look for the similar Data for QLD. it seems to be there at oesr.qld.gov.au.