Hiya AMDS,

With 200K cash or equity at your age is absolutely marvellous – well done. You are streets in front of me at the same age.

Assuming you have a high powered income to match that marvellous equity level, you could certainly do some amazing things in the next 2 or 3 years with a bit of leverage.

It’s only my opinion, but purchasing a…[Read more]

Hi Michelle,

For me it makes sense to do the calculation on 0% deposit, that is borrow the lot, plus all of the legals to get into the deal….using your existing equity.

Then, I simply take the nett yield of the prop and compare it against the cost of funds.

Eg ; cheapest money that I can buy right now for what I invest in is 7.10%…..so,…[Read more]

….or just get another job until your savings are not “minimal”….

Dazzling.

Just do it. If it doesn’t work can’t you always go back to what you are doing now?

Done…..put the resignation notice in….coming back to Oz.

Let’s give this thing a whirl…..

Thanks everyone for their views.

Can’t help you there with that one Gatsby….but I do have some news….I just quit my day job.

I work with about 7 other expats – mainly US and UK folks, ranging from 57 thru to 64….and they are planning my retirement party for my last hitch in July. Seems a bit weird with me being 35.

The cost of missing my wife and 3 girls growing up, back…[Read more]

This is a really really tough one and involves so many factors it’s almost impossible to accurately pin it down. Opinions will prevail and cold hard facts will go straight out the window. There are a bunch of economic factors (alluded to above) and then there are a bunch of family / emotional / touchy feely ones. Chuck all them into the mix and…[Read more]

Great to have you back Brenda.

How are your many deals panning out ?? What are you looking at currently ??

G’day mspartal,

Congratulations on your purchase. Looking at your numbers (what else matters right – in this game we play )

Gross yield = (200*52) / 235,500 = 4.4%

Outgoings : Not sure you’ve included everything. You’ve got rates (I presume you mean shire and water) and body corp fees which should include insurances…..what about Land Tax…[Read more]

Excellent Lee – congratulations on your recent purchase.

Care to share some numbers so we can all learn from your recent experience….after all this is a numbers game.

Well done.

Thanks everyone for their great support and stories. It’s marvellous to hear successful property investors all doing different things and all making a go of it. You all sound very busy, although that reno work sounds very difficult….back breaking and dirty work. We’ve only ever done it once for a residential place….after the tenants trashed…[Read more]

A tiny 400 odd sqm strata titled block in one of my hunting grounds just sold for $ 132 K. About 11km from the Perth CBD. Probably not suitable for what you are looking for though.

Same here…..

OK, good luck trying to extract more marlene, but….. unfortunately the chaps at the Tenant’s Advisory service have beaten you to the punch on this one. They had alot of input into the drafting of the RTA and hence there is a maximum you as an Owner of a residential property can charge as an entry cost to a tenant.

If you go over the maximum,…[Read more]

He said he will pay but then said I had the bond money anyway

Hi marlene,

I’ve heard that so many times during the last good while. What they are really saying is that you money grubbing rich Landlords have got our money anyway and as a special leaving bonus you can have the pleasure of cleaning up our disgusting mess. Marvellous choice…[Read more]

If worst come to worst, what will happen to average joe with a few IP’s and not much extra cash to play with to compensate recession prices and interest rates ??? Do we stand a chance?

Hiya mumofthree,

Being a mother of three, that’s exactly the sort of question my wife would say as well. I suppose my response would be something like the best…[Read more]

I’m not an accountant (thank the Lord for that !!), but the legislation specifically states 2 hectares are CGT exempt for your PPOR.

1 hectare = 10,000 sqm
1 hectare = 2.471 acres

Therefore the ATO will exempt 4.942 acres. Your parents other 5.058 acres will attract CGT if you go down the sell option, unless it was purchased prior to 1985, in…[Read more]

I prefer to see people stick to well performing middle class residential real estate or similar.

Oh well….I must be a great disappoint to you Simon…sorry mate. [biggrin]

Hmmmm……drooling…..

Thinking of all of the fantastic property deals I could do with 100MM…..it most surely would not involve anything that had the words DHA or residential or anything of that nature…..

As a former Westpac shareholder, I’d be writing a short letter to the Board letting them know whomever authorised that deal needs their…[Read more]

Depends on the dirt value of course, but I reckon a large house with nice pool and big garden in a decent area would be worth about 400 to 450K.

Lets have a look at your nett rental with a gross of $ 285 p.w. (gross yield of say 3.7 to 3.3%)

Total PM fees, say 13% of gross takings : $ 37 p.w.
Shire rates, say $ 1K p.a. : $ 20 p.w.
Water rates,…[Read more]

You say “if I want to sell”….but what is your intention for the property ??

We only have one strata place and would never buy another. If you left the strip of four shops together on one title, it would be more attractive to a buyer like us.

What is your intention with them ?? Sell if the price is right, split up if the price and headaches…[Read more]