I even pay IO on my PPOR so that I achieve the best possible cashflow and this increases my servicabilty and ability to invest further. I make money faster with an extra investment property than I could if I put that extra cashflow a P & I loan to pay off the PPOR. I locked in to a fixed rate IO @ 6.29% [biggrin] a couple of years ago.

After…[Read more]

I prefer to use a switched on solicitor that specialises in conveyancing because I get legal advice and conveyancing all in one. If something goes wrong with the deal, I have a very smart lawyer on my side and that has been a huge advantage for me in the past when people have tried to rip me off.

Todd Burns
http://www.freepropertyhelp.com.au

I own three IPs that I have never seen with my own eyes. I bought two that I saw on the internet and another one through a buyers agent.

It can be done without having to visit the property yourself and now I actually prefer to do it this way. I use a stack of online resources to research potential properties and I have a good network of…[Read more]

There really is not enough information here to give any sort of detailed opinion but 9% is a good return for a new property as long as you don’t pay an over the market rate price for it. You need to consider how long you want to hold the property and what sort of market rent return you will get when the builders lease expires. The location and…[Read more]

I get archicentre to do my building inspections on newly constructed properties and I don’t pay the final installment until all the contractual finishes have been completed to my satisfaction.

This process has been followed by a friend of mine as well and it made sure he got a lot of rough work remedied before he made his final payment. The…[Read more]

I second that. He’s my accountant too. He knows property VERY well.

Todd Burns
http://www.freepropertyhelp.com.au

Consider that you may be pushing things too far, too soon. It may be prudent to take time for some more equity to build up in your properties. If your gearing is high then you ARE in fact in a high risk situation and wanting to push the risk even further. Is that really where you want to be?

Todd Burns
http://www.freepropertyhelp.com.au

I suggest you consult an accountant specializing property investment because there are so many variables in your situation and to work it out properly would require exposure of all your financial details and I don’t think that’s a smart thing to do over the internet.

Also consider the capital gains issues that will impact you in different ways…[Read more]

Hi Kayee,

First of all I would like you and Solo to look at this link and see what has happened to the TAS property market. If the rise in prices from 2000 to 2005 is not considered a boom then I don’t know what is-
http://www.independentvaluers.com.au/content.asp?pid=1742

I suggest you do some number crunching yourelf or go to an accountant…[Read more]

It depends on how much it is costing you to hold. Is it a drain on your finances or are you getting a good rent return on it? There are better areas to invest if you are looking for capital growth but you are going to lose quite a bit of money by getting out and getting back in again. It would pay to carefully crunch the numbers on this one…[Read more]

Strict rules apply to boarding houses now in terms of fire safety and general health and safety related issues much because of what happened in the Childers and Kings Cross backpaker fires.

Make sure you have been in touch with the local council and you make sure that the boarding house conforms to all regulations before purchase and make sure…[Read more]

You should be able to find something suitable in or around Kalgoorlie if you try hard enough. It is not a one horse town. I have a great CF+ IP there.

I know of particular cashflow positive deals in various areas of WA but they are the type that require a bit more risk in order to get the cashflow. Risk vs return is something you will need to…[Read more]

There is usually a supply and demand issue here. If the lease expires and there is a high demand at the time, it is likely that you will get more rent because the tenants will probably not want to move and try and get somewhere else, especially if they will just have to pay around the same rent anyway.

If the tenants are moving out and new ones…[Read more]

For something a little different you could try a Google adwords campaign and include keywords such as ocean front or ocean views. That should get you some good exposure.

You could also set up your own website quite cheaply to market your house. You could try listing on http://www.owner.com.au and a few of the other online private sale companies.

I…[Read more]

Hi TDC,

Studios can be hard to get a loan for because of their small floor space. Anything under 50m sq is usually an issue for the lender. They are more difficult to sell for the same reason. They also tend not to appreciate in value as much as the other standard types of properties. There is usually not that much of a depreciation benefit…[Read more]

Hi Sean,

I have bought properties sight unseen 3 times and I just made sure I did alot of research and got professional people to check them out for me. Here’s a few suggestions-

Call some different realestate agents/property managers to get more information on the area (as others suggest)

Download google earth http://earth.google.com/and see…[Read more]

Hi All,

Inflation has just crept over the top of the RBA target range so something may have to be done to reduce spending and lower inflation. However, the rise in petrol prices may do the job and if so the interest rate may not need to go up.

The recent rise in petrol prices (if sustained) will equate to a 0.25% rise in interest rates for many…[Read more]

Hi FHB

How do you suggest that Bobby8 goes about getting a copy of the report because I know some banks are reluctant to provide a copy.

It’s crazy really, because most of the time the borrower is paying for the valuation in the loan application fee but the lenders often treat it as their own exclusive information. [angry2]

Todd…[Read more]

Hi fishman,

It is difficult to suggest because I am not clear on what you want to ultimately achieve. The strategy you choose to employ will depend on what your end goal is eg; Do you want to want to retire in 2 years? keep working and create a passive income ? keep accumulating wealth ? or do you simply want to have enough money to cover…[Read more]

Hi Bamute,

I have a line of credit on my PPOR. I have sub accounts that I have split off to take advantage of my equity.

Each sub account is used for a different investment purpose and this makes it very easy to keep track of. Just be aware that some lenders charge a monthly admin fee for each sub account. However, I don’t mind paying a bit…[Read more]