Real Estate Industry is not the best industry to be in if your ultimate aim is to be a property investor.

Remember reading about 10 yrs ago a quote from the REIV President (?) of the time claiming only 1 in 5 REA is also a property investor.

Slow down and work out what you really want to do – with your property investing.

I have done the REA…[Read more]

Hi Dan,

Not quite.

All banks have their own policies with respect to calculating your serviceability – how much can you afford to borrow. What Merlin was doing was using 80% of rental income and adding this to your income to determine how much you can borrow. I suspect the bank uses 80% because they tend to be conservative by nature – rather…[Read more]

Ballpark maths – allow around 11% in WA. This tends to cover PM fees and all of the costs associated (letting fees, monthly charges, inspeptions and so on) with getting your property managed in WA.

Shedin wrote:

We do have a broker whom we have purchased the previous 2 properties through and whom we are very happy with, but always happy to expand and not have all eggs in the one basket
 

Hi Shedin,

While that is all well and good – your loan structure doesn't look that terrific. and I wonder if the loan structure you have is because…[Read more]

Adding to Scott's comments about Kangaroo Point.

Noticed you are paying P & I – is there any reason for this? Can it be converted to I/O?

Being an apartment any growth you get (or not) is inextricably tied to the sale prices achieved for similar units in your complex. You have no means of adding value and the property will just track the local…[Read more]

danfresh wrote:

Also – how much should I be expecting to pay a broker for the whole "first home" experience?

Brokers earn their income from bank commissions – you shouldn't pay anything.

HI Yobbo,

Without knowing your full position – why are your looking at using cash for your next purchase?

If you use cash then you have lost any flexibility the cash can provide you with. For what it is worth I would prefer to put  the money into an offset account – (a bit like earning approx 6% tax free) – and, if possible leveraging off you r…[Read more]

Hi Matt,

I wouldn't be frustrated with your 'predicament' if I were you.

You have saved $15K as a student and secondly at the age of 23 you are already looking to make investment decisions for your future.

Both of these are big achievements in themselves so recognise you are a long way ahead of others at the same age.

As a starting point work…[Read more]

Hi Yobbo,

Just to clarify – is this your first investment or do you have property already?

Might help others to frame their responses.

Hi Hermelinda,

Of the three options you have provided I would always choose real estate investment. Mind you if you  posted exactly the same question on a share forum you will get a high proportion of people saying shares.

You are the one that is going to need to make the choice on this and the sum of money you receive will also play a part in…[Read more]

Given you'll be exempt from stamp duty (that is the big one) you'll probably cover the others for around $3K – does depend on a few things like which bank you are using.

Settlement Agent (not solicitor) Fee Guide for WA here

You'll also need to factor in building & pest inspection fees – allow around $500 (give or take)

Bit of debate about NRAS property here

Hi Dan,

I know you directed your question at Jamie but as a ball park figure you'll need a minimum deposit of approx 5% (give or take a little depending on the property chosen)

So if we use the $500K as your buying mark around $25K would be a reasonably good guide for you to aim at. You may need a little more for loan establishment costs,…[Read more]

And argue till your blue in the face if the conveyancer tries to charge you anything.

HI 99Ivan,

Seems to me that you have approached this whole decision making process the wrong way.

As a bush fire fighter I enter situations with the mind I am not going to do the tasks assigned to me and my crew until I can be convinced it's safe, achievable and is part of a bigger plan. Investment decisions should, in my opinion, be approached…[Read more]

HI YU,

Adding onto an earlier comment about selling your existing property to fund the new one.

I assume your current property is in Vic – if this is the case then it might be worth your while investigating spousal transfer to maintain deductibility of your existing home.

I am not sure if can apply to your existing property as it is owned…[Read more]

Extending on the previous comments – all properties have costs (loan interest, rates, insurance etc) – a depreciation schedule can offset some of these thus increasing your overall cashflow position.

And get a solicitor asap. This conveyancer is not looking after your interests.

TheYoungUnprofessionals wrote:

Our advisor is the director of Port Finance in Melbourne – a company that has a few different specialists, each dealing with different areas of financial matters…  Heard of them?

Cheers

I don't know Port Finance so cannot comment – sounds like you are now armed with multiple questions to work through with…[Read more]

Hi YU,

Your plans will need to consider the limited amount of equity you have in your property at the moment.

Based on the numbers you have provided currently your loan to value ratio is at 91% – the capacity to release equity from your existing PPOR is extremely limited.

When making plans and/or talking to your advisor make sure this issue is…[Read more]