Hi guys,

Please keep in mind that not all banks/financial institutions offer 100% offset accounts and also the interest rate will be higher if you are doing IO with a 100% offset account.

Please feel free to correct me if I am wrong.

Cheers
Paul

Hi Disprinforte,

You must be in a good growth area or done extensive renovations if you bought you house for $415k and think you can sell it for $500k?? That a 20% increase in 1 YEAR!!! Why would you want to sell your house?? Seems very strange to me

Have you actually had it re-evaluated or where are you getting these figures from?

Cheers

Don’t be a TOOL HookhamC.

These forums are for helping people, if you don’t know what you talking about or your going to be a smart-ass then go somewhere else.

I get offended when people try to comment on stuff they clearly don’t understand.

I actually am a structural engineer and know what I am talking about. Not my fault if your just an IDIOT!

Hi,

I agree with tools that this is not the case.

However, as a structural engineer, double brick houses will require a lot larger footings because their is a smaller tolerance for movement in the footings to prevent cracking.

However, if you have non-articulated double brick house then it may be alot harder to find a builder because it is…[Read more]

Hi James,

Firstly congratulations on taking the step to buy three investment properties. I believe that the buying costs to buy the properties and the high selling costs you pay to sell the property makes it not worth selling the property unless you absolute have to. You would probably pay $10,000 + commision to sell the property which makes it…[Read more]

Hi CT,

I have actually done quite a bit of research into shares as well as property. In fact, while I was in Adelaide I attended a 6-week course at a company called “Trading School” on Greenhill Rd, however they taught more about trends which don’t suit the cheap “10cent shares” as much as your top 200 bluechip shares. So its a different type of…[Read more]

Hi Richard,

I am 22yrs old and am looking at buying 5+ properties over the next 10years. I also already managed to save $25k in 13months of working and that includes living away from home.

When you talk about making sure you get correctly setup for the long haul how would you recommend setting everything up a single male which great dedication,…[Read more]

Hi Kum Yin,

I lived in Port Noarlunga (borders Christies Beach) for 5 years and i’m currently living in Victoria for 12months. However, all the areas around Christies Beach (Hackham, Morphett Vale, Noarlunga, Old Noarlunga etc) around priced around 180-220K for a nice 3BR house.

My personal opinion is that if you can find the right place in the…[Read more]

Hi again,

I forgot to mention Wallaroo on the Yorke Peninsula – I am 95% sure their is a new marina being built their as well. I know that vacant blocks (~600sqm) one or two streets back from the waterfront were selling for around $65,000.

Cheers
Paul[suave2]

Hi Art,

I’m sorry to bust your bubble but their is no inland marina in South Australia. Their is a new marina being completed in Port Lincoln, but most of those properties have already been sold, their is a new marina/subdivision someone in Port Adelaide that has been advertised for a while.

Just before Christmas their was an article in the…[Read more]

Hey mate,

Looks like you are doing very well to be saving $2k a month? Can I ask what you are doing to be able to save that much a month and go to university?

I graduated with a engineering degree in 2005 and if i’m a total tightass can save about $1800/month but thats in the months when I don’t have to pay car rego, insurance, sports…[Read more]

Hi Enigma,

I’m a structural engineer and have dealt with these types of problems before. Their are two options in this situation that I generally use. Firstly, is to total remove the inground pool (a bit expensive).

I generally call up a low strength concrete (say 2-10MPa) which for your information 2-3MPa is about the hardest you’ll compact…[Read more]

Hi guys,

I just thought of something. Can you pay yourself a 10% property management fee and/or charge yourself and hourly fee to look after a property? So therefore you could still claim 10% PM fees? If you think about it, by doing all this work you are losing money/time that could be spent doing something else. Therefore could include it as…[Read more]

Hi Richard,

Just clarifying: So to avoid x-collateralisation in the example you made you would need 3 individual loans?? The existing loan on the PPoR, the $40,000 equity from the PPoR and then $160,000 for the IP?? Is this correct, and how would you then go about paying off all these loans?

Do any incur extra fees and interest rates or…[Read more]

Hey Wayne,

Thanks for your response!

Just to clarify, so those costs include closing costs when you purchased the property, ongoing mortgage management fees etc??

Did it also include the interest on the loan because that would probably be the largest thing??

Cheers

Paul[suave2]

Hi Wayne (& Lisa),

Firstly I’d like to say a HUGE congratulations on what you have achieved so far. I don’t think their would be many people in Australia that would be in your position at 26yrs old when you did it all yourselves!

Just a quick question: You mentioned that you bought a couple of vacant properties obviously for CG purposes. Did you…[Read more]

Yeah, its called re-financing….

However, you might want to talk to an accountant to make sure that the increased interest that you are paying on your IP will be tax deductible.

Cheers

Paul[suave2]

Hi,

Unless you bought property 5yrs ago when it was still possible to find cashflow positive properties you will most likely find that you will have to work full time to maintain the repayments on the loan because it is VERY unlikely you will find a property that pays for itself and can allow you to stop working.

I personally didn’t find Steve’s…[Read more]

Hi Ray,

I thought you said a good return?? That rental return on this property is only 5.94% plus I would need to come up with 5% closing costs and it already needs work.

Sorry, but it doesn’t sound all that great to me. I can get 6.25% interest for leaving my money in the bank at the moment with no hassle.

Thanks anyway

Hi Guys,

My parents just had a similar situation. They have bought their first IP property but when they went to the bank for a loan the bank valued the house $40,000 less than they are paying for it. Their reasoning being that the property is in a new area and their are no similar houses to compare prices. I feel very nervous for my parents at…[Read more]