Far be it from me to paint a rosy picture and indeed i share obiwan’s concerns about a number of generalisations.
I share Mark Twain’s views about statistics. Rather than use average weekly earnings, maybe average household income would be a better picture.
Second there will be a spectrum of people eg
own PPOR no debt
buying PPOR Debt $
IP no…[Read more]

Maybe investing in a listed property trust could help while you build savings.

Others can probably help you more specifically, but as someone who has had some involvement with Armidale over many years mainly distance ed residential schools, it seems to me Armidale’s major asset is its educational and cultural activities. When I was doing some looking in Armidale a couple of years ago, the agent told me most leases were 12…[Read more]

If your Golden Bay property is an asset of your Super fund, you will not be able to use it as security for a loan unless you want the wrath of the Australian Taxation Office to fall on you.

Can you find out anything about the owners and their motivation for selling eg from neighbours. Might help you in negotiating. My suggestion is look at the total you are willing for the property to cost you over the next few years eg price you are willing to pay plus interest you will be paying on whatever you borrow less income from property or…[Read more]

In relation to caveats, if you are buying from the registered proprietor (owner) and there is a mortgage or caveat registered on the title, the owner has to give you a clear title ie a discharge of the mortgage and either a withdrawal of caveat or otherwise have the caveat removed from the title at or before settlement.

If you are buying from the…[Read more]

What I meant was that it strikes me that in the regional cities I follow there are a few sub-markets for strata units eg say $120,000, then $150-$160,000 then say $195,000.

Depending on the location, building etc, if these sub-markets exist where Snowgum is looking a more extensive renovation might increase the price. If that kind of market…[Read more]

I agree there’s a lot to consider. Obviously increased borrowing capacity is one and no doubt the possibility of being able to free one flat from a mortgage so you can use another lender when making further investments. My comments are looking at the things to be considered in whether the strata title is feasible. There might even be a better…[Read more]

If you want some more detail on questions 1 & 2 read “$1,000,000 in property in one year”. Your local library may have it.

The book might not dot every i and cross every t, but it answers a lot of your questions. How these people achieved what they did differs, but they’re certainly inspiring examples of people who set goals and aimed for them.…[Read more]

Derek’s points are good. What suits one person might not suit another, what is a good strategy for one person at a particular time in their investing cycle might not be at another time.

In my case I made an investment a few years ago with a shortterm P & I loan. The income from the property is making the payments. I can and have accessed the…[Read more]

I’ve got a small block of flats and from my experience about one-third of gross rent or slightly under seems about right for expenses – managing agents, rates, insurance, repairs, lawnmowing. But you should be able to check most of this.

In relation to strataing the flats a couple of things to look for are:
a. does the building meet current…[Read more]

I think you may find it is income tax. There was a Business Review Weekly article touching on issues such as this. I think 4 March 2004 issue

I’ve seen a number of properties recently where the returns are cf+. The issue is whether the towns they are in are good risks, prices in many of the smaller towns have dropped, some of the smaller towns based on agricultural industries in NSW particularly in the north west where irrigation farming has been a driver of employment are going to…[Read more]

There seems to me to be a fundamental difference between a disclosed vendor bid and dummy bidding. In the first instance the vendor is saying your bid is too low and you know it is the vendor, it’s just a different way of negotiating and more honest than the chestnut some agents use in private negotiations ie someone else is interested.
In the…[Read more]

Not having attended any seminars, it seems from this thread as if the principles are based on Steve’s new book ie problem plus solution equals profit.

I like to look at a number of scenarios, worst case, medium and best case and prepare a cash flow over a number of years. If I then consolidate the cash flow with my other investments I can see…[Read more]

We’re not slow in the country – that’s just what can happen in guaranteed rent offers.

As always you need to check whether the rent paid reflects the rental market in the area

1. Purchased 1 property. Increased rental return by 3 x, so it’s CF +, still potential to increase return as property not fully let.
2. Finished M Comm by distance ed and 3 more subjects in MBA
3. More involvement in church activities

For 2005

1. Investigating 2 more IPs.
2. Taking a break from formal study
3. Looking at some business ventures

Gross rental yield is annual rent/(price plus closing costs) converted to a percentage. I prefer to include closing costs as they are part of the purchase price

This is different from calculating the percentage for cash on cash return which looks at the cash you receive after payments out divided by the cash you have put into the deal

Whilst your anecdotal stuff is relevant, you might not need a high proportion to make the “sea-change” “tree-hugging” demography work. Eg if 1 in 100 retired to the “coast” 20 years ago and 2 in 100 retire to the coast in 10 years, there is still going to be solid demand for city dwellings, but there might also be a substantially increased demand…[Read more]

You might also find that a vendor won’t want structural alterations done before you pay. After all if you start, don’t finish and don’t complete your purchase, they’re between a rock and a hard place