Hi DaOne,

Those questions can only be answered by seeing a copy of the contracts you signed for each component of the deal (land and construction contract). The terms and conditions should all be outlined in there for you and have remedies for events like the ones you have stated above not proceeding. Of course if the contract is silent on those…[Read more]

Go to http://www.homepriceguide.com.au and type in the postcode you want to know about. That will bring up the number of days to sell for either houses or units in that area. If you want to specifically know about a direct comparison in the area, that will have to be done in much more detail. That is, you will need to know when it was put onto the market…[Read more]

I have Muswellbrook houses as a current rating of 150/500. Basically you wouldn't want to be an owner in the area at present and from a statistical point of view I wouldn't waste another minute of time on it.

The stats are as follows:

Typical Value
$324,000
Days on Market
93 days
Vendor Discounting
6%
Auction Clearance Rate
56%
Rental…[Read more]

The answer to that question is pretty simple. You will be no better or worse off by increasing the loan on one side and reducing it by the same amount on the other loan. The net loan ratio isn't changing and the PPOR that the funds are being drawn from isn't an investment property, so there is no tax benefit gain there. In any event if the offset…[Read more]

Hi Juichi,

Its a pretty big topic the topic of property investment area research and one where you will have many people tell you their method/data is superior to someone else's. Basically I have done a thesis on property research at Uni, invested in many properties of my own, built and developed around $50 million worth or high rise unit…[Read more]

Hi Craig,

The only real way to illustrate this is by taking an example and seeing what the difference is. Lets assume the following for the purposes of the illustration (based on your numbers above):

Income – $75,000
Property Purchase Price – $540,000 (House and Land)
Property Rental Income Yield – 5.59% p.a.
Annual Vacancy Rate -…[Read more]

Where do you currently live?

Harry,

A few others have correctly outlined that the first port of call is ordering a valuation for your IP so you know where you stand if it is sold and what debt you would have remaining against your PPOR.

If you mail me the address of your property, year it was built (approximately), condition of the property (below average, average, above…[Read more]

Hi there,

If the repairs were deducted from the last tenants bond and you have a documented record of all of this (as you have stated), then its pretty easy. Write them a letter stating that they have 48 hours to issue the funds and report to you or you will be reporting them to the Department of Fair Trading. The last thing any agent wants is…[Read more]

Hi Kylie,

There are a few amazing opportunities in the Brisbane market at present, and of course now is a prime opportunity to get in as there are still quite a number of apprehensive people about the region. Fundamentally there are a few extraordinary x-factors that make the Brisbane market a prime target for investment right now and some of…[Read more]

Hi Brmiau,

At present you can buy nearly any investment property in any area and provided you earn around $75,000 per annum your investment property will  be positively geared with as little as a 5% deposit. 

There are obviously many variables that contribute towards a property being positively or negatively geared, however the major factors…[Read more]

If the question is whether you should finance your investment properties stand alone or using cross collateralisation?

Using the information you have supplied, in that you have a 20% deposit for each property, you should set up each property with one loan. That is, the security the bank takes will be on that property only. In the event that a…[Read more]

Hi Ozman,

You can also pro rata the annual water rates, council rates and any insurance you are paying on the building for 2/12th's of the year.

Hi Getafix,

I have now developed over $50M worth of property over the past 8 years (including 1 large $23M) and can offer this advice:

There are many skill bases you require before even contemplating development, especially one the size you are considering. Some of these can be summarised as follows:

Negotiation Skills (Most important)
Design…[Read more]

Hi Flowergirl,

On the face of what you have said, it is categorically a repair and not a capital works deduction. You aren't able to replace the damaged pipe with a steel replacement these days, so replacing it with a copper pipe and claiming a deduction as a repair would be a very unlikely outcome to be challenged by the ATO.

I have quite a…[Read more]

Let's have a look at the facts based on what you have posted about the property you are considering purchasing:

Rental Income – $1,300 per week (3 year lease in place)
Rental Yield – 12.75%
Risks – Commodity prices could decline which results in mining companies putting staff off in an attempt to reduce overheads. 
Property can only be leased for…[Read more]

Hi James,To illustrate how unrealistic these timeframes are, think about the following:Generally when you purchase a property (not including the time it takes to locate and agree on all terms within the contract), the settlement is generally 6 weeks after the contracts are exchanged. This basically means you have to exchange a contract the day you…[Read more]

Hi Carpe,I have now developed over $50M worth of property over the past 5 years (including 1 large $23M at present) and can offer this advice:There are many skill bases you require before even contemplating development, especially one the size you are considering. Some of these can be summarised as:Negotiation Skills (Most important)Design…[Read more]

Without looking at the detail in detail, I would not recommend this path without some serious consideration. Think of what you were doing 4 years and 10 months ago and how your perspective on life/business may have changed in that period to the present. There are many variables that would need to be considered before you remotely entertained…[Read more]

Hi Anthony,I have a detailed knowledge of what you are asking and the rules as stipulated by the Corporations Act (Chapter 7) in relation to raising money without an AFSL.If you still want to ask any questions, please e-mail me dward@parkstoneplace.com I have been a property developer for 5 years and have dealt with this a number of times.Dave.