I don't know the stats but I bet my last dollar that almost all sales in Australia would be effected by a REA.

Real estate dot com seems to be the one used by the great majority of agents.

Better question to ask what your agent will do to sell your property. Make sure you have you listen carefully to see what they will bring to t he table.

Hi Jerome,

Thanks for the follow-up – further reading tells me 'affordability' as per the report is wholely and solely based on purchase prices. There is no consideration of rental yields in the research as they are looking at the properties as if they were purchased by owner occupiers.

Property Observer has a summary on the report in an article…[Read more]

Thanks for clarifying that – geez, who would be an accountant?

I must admit I am not sure of the costs as that is something our development manager handles. But if it is any consolation we had to do something similar for some projects in Karratha.

These newer and somewhat surreal 'flooding' restrictions are being placed on developments by a few councils in WA (& probably Australia) as a follow on effect of the Brisbane floods where councils allowed developments in some areas below 100 yr flood mark.

As a result of newer properties being inundated some insurers have initiated legal action…[Read more]

Hi Jerome,

Did the report define 'affordable"? Was it a dollar value? Comparison to rental income? or ???????

investhut wrote:
  am I trying to do it too soon.

When to go (or go again) is not so much an issue of time moreso it is an issue of finance and from a financial perspective you look well placed to start your investment journey.

Before you make a leap make sure you spend some time trying to work out what you are trying to achieve as this…[Read more]

No worries – make sure you are extra diligent on this one.

4 years is very young to have problems of this nature.

I might add with 88 units in the complex your capacity to add value and outperform the other ones is very limited. In many respects your growth will impacted (negatively and/or positively) by all the other units in the same building…[Read more]

Derek wrote:

If the property you inherited was someone else's PPOR you have 12 months to sell before you start incurring CGT pn the property, A valuer can determine the value of the property at the time you took ownership.

PS Should be 2 yrs

Terryw wrote:
That changes things The cost base will be the market value at the date of death.

Is that because property was bought pre-1985?

Not an accountant so seek expert advice,

If the property you inherited was someone else's PPOR you have 12 months to sell before you start incurring CGT pn the property, A valuer can determine the value of the property at the time you took ownership.

If the property was an investment property then you will be liable for CGT from date the…[Read more]

Hi MrLV,

Don't know Sydney suburbs well enough to make a valid comparison to Sydney suburbs.

Link to Dianella statistics and profile for your information.

Light rail will have a positive effect on property prices in the vicinity of the rail route. About 8 years ago Michael Matusik did an analysis of properties in the same suburb to see which…[Read more]

brmiau wrote:

I also read somewhere that if you plan to stay in your current home for a long time, its better to pay it off over the period of the loan and concentrate on putting excess money into IP's. Is that true?

Surplus money should always be directed to paying off non-deductible debt (your own home) rather than deductible debt on…[Read more]

Hi XDans,

Like Richard – those sorts of faults in a building 4 years old is not a good sign. It will need further investigation.

You also need to double check the building warranty issue. From memory (and it has been a while) if the property is multi-story (above 4 storeys) or has an underground carpark then you may not be covered by the 6/7 yr…[Read more]

Hi YG,

As Jamie said SANF = sleep at night factor.

In otherwords if you are worrying about cashflow, meeting bills etc if rates rise in the future then it may be appropriate to fix some rates if certainty of expenses is something you are chasing.

Qlds007 wrote:

Derek, sorry noticed i missed one of your earlier questions.

No 90% is not the norm in fact far from it and only 2 lenders who will go that far.

Happy to PM the lenders to you if you need them.

Hi Richard,

Not necessary – I just like to try and keep a light finger on the general market, including finance developments if…[Read more]

brmiau wrote:
, then possibly move to a larger property on a couple of acres worth $800k+ and use the money from selling this house to help fund the move. 

Nice plan – be aware that the zoning of the land can effect the amount a bank is prepared to lend on a property. If the land is zoned rural then some difficulties may occur.

Try and stick…[Read more]

Could be a good time for those looking to resolve SANF with certainty of expenses to lock some of their loans in.

Anyone locking their rates should way the SANF benefits with loss of flexibility.

Hi Future,

Your thread title suggest you are also looking at Terry Ryder's Hotspotting reports.

To me Residex and Hotspotting reports are two entirely different beasts.

Residex is very much statistically based whereas Hotspotting (certainly the reports I've read) are a summary of govet and private investment decisions which are likely to…[Read more]

Hi JL,

Following the predictions of the popular press who love the 'Hot Spot' phrase as a marketing tool for their magazines, website, email list, feature property article etc is not a recipe for success.

Property Observer did an analysis of last years 'hot spot' predictions in two popular property magazines – here are the results.