Was going to mention flying solo. I did spent some time there in the past.

Your decision to NG or PG needs to framed with your disposable AND taxable income in mind.

I don't see a lot of point negatively gearing a property if you are scratching to make ends meet every pay period. I appreciate that may seem a silly thing to say on $130K but I have seen enough people earning similar (and more) without much in reserve.

NG…[Read more]

Sounds like you are self-managing.

As others have said – grab a copy of the tenancy laws in your state and follow them to the letter of the law. Just because you self-manage doesn't mean you can operate outside the tenancy laws in your state.

Always handy to have a copy in your files even if the property is professionally managed.

Hi SNM,

Reading the OP he/she did suggest that his previous offers had been rejected. I assume the offers were submitted through the agent/office now chasing their share of commission.

On this basis there should be a paper trail as proof.

Most listing contracts have a clause in the agreement which covers this exact situation and based on what you have written it would appear as if the agent has a legitimate claim to commission.

But, as Richard as pointed out, this is an issue between the vendor and agent. You make your offer on what you are prepared to pay and then leave the…[Read more]

Your expenses will still be deductible while you are seeking a tenant.

Avoid renting to a friend at 'mates rates' – there is a reasonable expectation held by the ATO that any rental arrangements are at 'normal market' conditions.

As Jamie said – why not get a property manager on the job too?

Hi BigO,

Given you signed the contract to purchase this property two+ years ago I wouldn't be making any grand plans until your valuations are in and both properties have settled.

The Melbourne unit market is a very different beast now to what it was two years ago and there are a number of things that can throw a curve ball at you even at this…[Read more]

Hi Jewel,

Methinks time to reduce your offer if you still want the property.

Christmas, vendor has waited a few weeks, agent looking for a sale just before quiet time at Christmas. Could be an opportunity for you.

Hi Jact,

Let's leave the tax questions to one side for  the moment and only focus on the strategy you are considering.

At the moment you are paying $5K/month into your portfolio and want to redirect that into your own home mortgage while allowing your LOCs debt levels to increase by the same margin.

On this basis I have a couple of questions…[Read more]

hbbehrendorff wrote:
Yes, I agree with much of what you said… though one thing that really bugs me is when your sorting through hundreds of different property's and they all say lines such as…

 "WOW, Great Investment Oportunity !" or "GREAT RETURNS" or "INVESTORS ONLY!"  though most of the time they don't say how much they rent out for

And…[Read more]

Seems ASIC is making moves to provide an educational course on financial skills which goes as low as 8 year olds.

Link to an online story here

Not sure why Melb. RPData, and others, are reporting declining vacancy rates are reduced market activity.

I think other markets would provide better investment options at the moment.

Any chance you can get vacant possession and remove the problem entirely?

Probably too late now but maybe next time.

Not a broker & not Richard – can be done.

The bank needs security over their loans before they lend money. In some cases a bank will accept cash in a term deposit as security.

For example you want to borrow $80K but you want to retain the cash you have (a bit like OP situation).

Some banks will allow you to deposit money into a term deposit…[Read more]

Hi EW,

The first steps are always the hardest and asking questions, as you are, will help you clarify your thinking.

By asking questions you will get to understand some of the 'ins & outs' of property. Bear in mind you will, from time to time, get contradictory advice and comment (see above comments as an example) the challenge for you will be…[Read more]

Congrats on starting to think ahead – having lived in northwest mining towns I have seen people burn their high income earnings on 'toys'. I have also seen people make good use of their high incomes while they are there. Looks like you fall into category 2.

Grab yourself a decent broker so any move you make from here minimises the amount of cash…[Read more]

Hi EW,

I am not a broker but I agree with Tom's comments. I think you should be able to borrow more than the banks have indicated in your original post. Grab yourself a broker who can work with you over the long haul and one who understands property investing. They will be able to work with you to make sure your borrowings are maximised and…[Read more]

Hi JPS,

Sounds like you are covering the bases pretty well.

Make sure you get assistance with  your conditions that you want to insert in the contract. They need to be written so there is no ambiguity and that your interests are well served through them.

All the best with it.

What are your total BC fees?

Lifts are one of the most expensive items a body corporate needs to cover each and every year.

Is there a pool? Also expensive to maintain.

Offset rather than savings for the very reasons Jamie mentions.