Hi Cham,

A reality check needed here – make your targets realistic. 100 properties in 3 years may have been achievable 10 years ago. Not so sure now.

From memory that property portfolio was what Steve managed to achieve. From memory Steve also had a knowledge and skill set complementary to his property investment journey. Do you have this?

So,…[Read more]

Hi Steven,

I am not sure where the 58 properties came from but the key when starting out is to get to the start line and start the journey. In other words focus all of your efforts on number 1.

When that one is tucked away then look for number 2, then 3 and so on.

Property is all about one step at a time.

Jamie has given you some ball park…[Read more]

TonyLyn wrote:
There are still properties around priced between $100k – $150k that are cashflow positive. You could potentially use a $30k deposit to buy one of those. I know Steve McKnight recommends buying with a 20% deposit to avoid Mortgage Insurance but in the end the banks will probably lend higher than that depending on your ability to…[Read more]

You claim what you are charged in interest – in your case $36K/annum.

When the loan moves to P & I you will only be able to claim the interest (in your case $36K).

If you mix private, non-deductible expenditure in your loan (or LOC) account then it becomes messy from a taxation perspective as you can only claim the portion of the interest that…[Read more]

Certainly borrow the LMI – keep your cash in an offset account linked to your home loan.

Hi Iljay,

Studio apartments are often sold on the attraction of perceived high rent returns. You need to understand that a serviced apartment often has significant ongoing costs and these can seriously erode your net cash flow – there is a huge difference between gross and nett cash flow.

Banks see studio apartments as a higher risk and…[Read more]

Thought I'd let you post this one Jamie

What state – some states have cooling off periods, others don't.

Hi Mukesh,

You don't necessarily need a 20% deposit. It is possible, in some cases, to reduce the size of your deposit required.

I suggest you repost your comment/question in the finance section under a new topic and a number of brokers will provide you with some feedback.

For WA – try http://reiwa.com.au/home/default.aspx

Market Info TAB has suburb price and rental information along with suburb profile detail.

This might help

ATO Subdividing Land Notes

I am sure the good folks at SS would be able to provide some advice for Mel.

Hi Mel,

Commbank are running an investors night in WA in conjunctin with Andrew Winter and the Sunday Times. Not sure if there are plans to do the same in other states – but might be worth a look. 

In terms of seminars. I would try and work out what basic strategy you want to employ before attending any seminar. You can do this through books and…[Read more]

Hi Rachster,

With a few exceptions new properties usually come with a 6 year warranty. Check out the builders services authority in your state for exact details. On top of this new properties also have a defect warranty period from time of practical completion (not settlement) – once again this may vary from state to state so a google search will…[Read more]

Terryw wrote:
Yes, the broker must be part of one of these groups selling properties – probably $40k commission build in.

My thoughts exactly.

Was the broker 'recommended' by the company selling the house and land package?

Nothing wrong with neutral gearing if the property goes up in value.

Rental returns may be able to increased or you can pay down debt (if there is no non-deductible debt on your balance sheet) both of which will increase your rental returns.

Hi MIck,

I suspect the $1400 completely covers both buildings and the $2600 is an agreement between owners to maintain their halves of the duplex so values are maintained.

Is there anyway you can check the figures?

They are much too high for a common driveway in my opinion.

Either that or it is a veeeeeery long driveway paved in gold.

If the figures are correct I see scope to reduce costs pretty easily.

Mick,

Sounds like you have a common driveway and that is all. If so are those figures correct?

$1400/annum to cover a driveway & $2600/annum  for a driveway sinking fund.

Doesn't sound right to me.

I must admit I am intrigued by the KRudd – media relationship.