The only concern would be if the reduction in property values is followed by a reduction in rents or a difficulty in finding a tenant (maybe no one wants to live in that area any more, hence the decrease in property value).

In this situation your position would obviously be affected (but not until your current lease expires), otherwise, as the…[Read more]

The numbers alone look great.
Certainly +cf (assuming no extraordinary annual payments for whatever reason).

The one thing that may detract is the area they are in. For example; is it a mining town where the mining company pays large rents on behalf of it’s employees, but if the mine closes down….

That sort of thing.

If it’s a “normal” sort…[Read more]

I’m not an expert, but I believe that Australian Self Managed Super Funds (SMSF’s) cannot “borrow” for the purposes of investing.

Therefore, you can’t buy an IP with the traditional deposit + loan arrangement – you have to go and buy the IP outright.

Hope you have enough money in your Super Fund for that one!

PS, could someone confirm the above…[Read more]

I think the last two posts (from Marc1 and resiwealth) are getting closer to what’s needed.

Some sort of common area (whether by search or by listing) where people can find generic information (“how do you calculate the 11 second rule?” for example) and then people swing into the forum itself and ask a more specific question which is then either…[Read more]

Hi Chris,

the first thing to consider is that you own the property, not the tenant. Therefore, it is for you to decide whether or not you want to make any improvements over and above it’s current state.

If the tenant won’t live there without the improvements they request, they can always go elsewhere.

However, it is quite possible that the…[Read more]

For information about Development Applications and zoning laws you will need to refer to the specific local council.

Whilst there are general principles that apply across each state, the DA submission requirements differ from LGA (Local Goverment Authority) to LGA.

Again, each LGA will give you access to it’s current zoning policy. Many have…[Read more]

With regards to renting it out now or waiting for the “right time”, try this exercise;

1) Wait 2 months now, rent it out in January and then keep re-leasing every January.
RESULT: A definite 2 months of no rent.

2) Rent it out right now and then try to re-lease it next November. If you can, great. If you can’t, well just keep trying until the…[Read more]

Hi padmaa23108,
I’m not going to answer your questions about whether to hold or sell as they are the sort of things I’m asking of myself right now. If I come up with an answer I’ll let you know though

With regards to renting to students;
1) Follow Derek’s advice – time your rental period.
2) Consider not trying to lease individual rooms.…[Read more]

In the interests of getting back onto something resembling the topic….

I looked at CBD carspaces around 2000/2001 (but bought a house to live in instead).

At the time, CBD spaces were around $70k – $100k (asking price – not sure what the final sales were) and were renting for a bit over the $100/week mark from memory.

Some on the city fringes…[Read more]