Jack

I will bet you what ever amount you want that within 5 years property will NOT loose half its value. The pilbara is a large area and cannot be defined by one city.
Your comment sounds like a prediction from an economist. I remember Western Sydney associate professor of economics and finance Steve Keen bet Margaret Lomas that house prices…[Read more]

Hi Charlitayla,

I remember when I got into property and became a property seminar junkie. I would keep my eyes and ears peeled for all the free seminars and spend my weekends going to along and listening to all the different speakers telling their stories, and if I follow in their footsteps I can achieve financial freedom.
One thing that I…[Read more]

Not sure if its just the wording but the tax deductable interest repayments go back up in with a redraw too.
Do you mean that I can still claim the interest as a tax deduction if I take that 20k out and use it on a car. ie the interest on my car repayments are also tax deductable assuming I used the 20k from my offset account?

What is the difference between an offset account and a redraw?

I know there are a lot of people out there who are not very fond of the commonwealth but we just finished negotiations with them today and have a rate of 7.0% with them. That is a 0.8% off their standard variable for the life of the loan with an offset account that has no fees/charges for making withdrawals plus a gold card and they have waived…[Read more]

We had quite a lot of trouble with ANZ. We refinanced with ANZ and got a line of credit in the process and that was all fine. All in my wifes name. The two loans we refinanced were meant to be interest only but we noticed there was something wrong once we started making repayments. My wife rand them and pointed out the error and they said she…[Read more]

I totally agree with Pullright. There is nothing wrong with buying regional/rural towns if that is the only way you can afford to get into the market. Its is also unrealistic to say believe that you will not see any capital growth in regional areas. There is plenty of data to support the fact that, sometimes regional areas can out perform capital…[Read more]

luke86 wrote:
Better than my interest rate- I am paying 7.1% with Commonwealth Bank. But I have easy access to equity via Lines of Credit so I am happy with my deal at the moment. I probably should shop around for a better deal, next IP I will be talking to a broker.Luke.

Luke you should look at trying to get onto Commonwealths…[Read more]

One strategy that i have seen used successfully, (by my partner's father) is create as many incomes as possible from the property. things suchs as converting a bungalow into a self-contained flat, or splitting a 2storey house and renting out the top and bottom levels seperating are ways positve cashflow has been achieved by receiving more…[Read more]

I would rather just go to the "Positively Geared Property" shop and buy one. Much easier!

haha…….Yes I am biased but that's because I know how good the REI(Real Estate Investar) tools work and how much time they can save you!You are right, you dont have to buy in rural areas but the problem with finding +ve geared property in a capital city is that it takes a lot more time and your negotiation skills have to quite sharp. Same with…[Read more]

Hate to sound biased but the best way to find positive geared properties is using Real Estate Investar. I just performed 2 searches, 1 with a minimum rental yield of 8% returning 94 results and the 2nd with a minimum of 9% yield, returning 32 results. Even with an 8% rental yield you are doing well. These searches combined took me less than 10…[Read more]

Been having a closer look at the suburb of Reservoir and it seems to be a hot little suburb. Looks like the sellers have caught on to the fact that there are developments popping up everywhere. Not many properties on the market at or below the median!Did find this one though. You have probably already seen it but seems to be the cheapest getting…[Read more]

I did a quick valuation using pricefinder and for a block of 799sqm with a 3×1 weather board home un-renovated on Oconner St, Price finder estimates a price of 454k with a probable range of 391k to 517k. All the comparable sales looked very similar so I think 450k would be a fairly close estimate.I dont know the area at all but I can see that…[Read more]

Azalea,I think the Wembley/Glendalough areas are possibly some the best areas with a budget of 300k. Other good area where you can pick up townhouses for around 300k is Yokine, and even Bayswater.  Otherwise you may have to look in areas such as Koondoola or Girrawheen.One thing to remember is that while some of these areas are perhaps less…[Read more]

Hi marq001Yeah Margaret walks the walk and talks the talk. Her book – "20 must ask questions" is the bible when it comes to finding the right place to invest.One thing to mention is that if you dont have foxtel you can purchase episodes of her show "Property Success" from her website for a small fee. In each episode she does a town spotlight on…[Read more]

Hi Reeen, I think what it comes down to is how much risk are you comfortable with? Sunshine and Braybrook are suburbs that definitely have potential and have experienced some great growth in the last few years like wise with  Dandenong and Noble Park. I even think that Terry Rider had Dandenong listed as one of his hot spots early last year. But…[Read more]

Wattoette,It is a liitle bit hard to say that "melbourne" prices were around $300 -400k ten years ago and still are now. What do you define as Melbourne? Richmond, Camberwell, Kew, Footsgray, Sunshine, Altona,  Knoxfield, Boronia Ferntree Gully, Frankston, Seaford, Mornington? It is a little bit hard to compare inner city to northern suburbs to…[Read more]

Yeah Paullie you are right, it doesnt matter where the money comes from, it depends on what it is used for. If you use it to buy a new car the interest component will not be tax deductable. But if you use it for an investment property the interest IS tax deductible.As for the higher interest rate, it may be slightly higher like .2 or .3% higher.…[Read more]

Paullie,Sounds like you have a lot of equity sitting in your PPOR. If I were you I would be looking to take out a line of credit against your PPOR. I cant see why the CBA wouldnt give you at least 600k line of credit. The best thing about a LOC is that you only make repayments on the money you spend rather than the whole amount. In some situation…[Read more]