Hi Bindin,

The 5 year timeframe is going to make things difficult to achieve.

Paying off your LOC of $234K (see Terry's comments above) in 5 years is going to be a hard task. I am not sure that I could manage that. The downside of this is that you only improve your cashflow by around 16K/annum at 6.5%.

Let's assume you have managed to pay off…[Read more]

Further to Plummers comments.

Most of us are aware of the need for smoke alarms to be fitted into properties. Most of us are also aware that batteries need changing every 12 months (ever hard wired alarms).

But not a lot of people are aware that the alarm only has a life of 10 years – it needs to be replaced after this. Just down my own house as…[Read more]

Hi Plummer,

I wonder if the property was self-managed and if it was professionally managed did the inspection reports mention new wall and 'other beds'

Message to all LL makes sure you go through your inspection reports with a fine tooth comb and attend to items identified.

True – this so much.

Hi Bindin,

What sort of timeframe are you looking before you retire?

If we look at your current situation (all estimations) and in todays dollars.

Total rental income = $35K
Ongoing costs = $7K
LOC Interest @6.5% = $16K
Loan I@ 6.5% = $35K

Pre-tax shortfall (loss) = 23K

Obviously paying off the LOC would be a start but even if you managed to…[Read more]

Hi Bindin,

I assume you are frustrated by the lack of growth in the two properties since date of purchase. Is this correct?

Are both of your properties in Armadale and do you live there too?

Your situation is not unlike too many other property investors who bought in the Perth boom of 2006. Hopefully you bought at before the boom was daily news…[Read more]

MosicLandscapes wrote:
Just came back from a holiday in Cairns and am now very interested in investing up there

A recipe for disaster – holidays and investment decisions should be made a long way apart.

You indicated the Cairns rental vacancy rate has dropped by 1.3% – what is it now at?

I agree with Bardon – Cairns has a degree of 'one…[Read more]

Hi Ante,

Well done and welcome.

I enjoyed Peter's books – a different slant on property investing.

I would get your dreams and aspirations onto a piece of paper so you have a grand plan in mind.

Then once you have a plan in mind and if you want to get serious about property investing I recommend you start building a team around you:…[Read more]

Hi Rob,

Given you have experience with sub-dividing & developments I would go that way again.

Start small and build up rather than trying for the 'kill-shot' with your first (second time around) effort.

My thoughts FWIW

Hi Kate,

Oops – I can't keep up with Govt Department name changes.

DOLA = Landgate

Thanks for reminding me

RPData is probably your best option.

I am not aware of a free site of that information.

DOLA do a title search facility at $24/search.

HI JL.

Not sure which state you are focussing in on but http://www.reiwa.com.au provides a snapshot of each suburb & locality. The stats are sifted from ABS census data. At the  moment though the census data being used is only 2006.

Link for an example – note I do not consider Donnybrook a Boom Town

Josef wrote:

I have heard of PIA software however my understanding of this is that is only shows you how your properties are performing not an over all financial position.

Hi Josef,

PIA is used for analysing cashflow of an individual property inclusive of tax deductions (where relevant). It is also possible to input some details related to…[Read more]

Terry Ryder http://www.hotspotting.com.au does various reports including 'Boom Town' reports. Dymphona Bohault (sp) recently produced a 5 set series of Boom Town reports.

I might add the resource world has changed a fair bit since most of those reports were produced so extra due diligence is required.

JacM wrote:
I cannot understand why this lady (the property  owner) has chosen this course of action.  Nice way to say thankyou – not !!

Hi JacM,

Is it just the blame someone else syndrome which is all too prevalent in some people?

Hi Joel,

Without more information it is difficult to respond with any degree of certainty to your question. Some more information would be useful.

Some companies suggest investors put all of their rent into their own mortgage and then let the interest on IP loan capitalise.

The ATO disallowed this strategy sometime ago – a read of the Harts…[Read more]

Interest only is as low as your repayments will get, barring a reduction in interest rates.

Hi Merahma,

I am always cautious about property sold with tax incentives as the big carrot. A key question I would ask of myself if I was looking at a NRAS is – would I buy this property without the NRAS incentive?

If the answer that question is 'no' then move on and find something else.

HI have had a couple of experiences with NRAS property.…[Read more]

Qlds007 wrote:
there are still lenders who will go to 90% lvr on a standalone basis.

Hi Richard,

Haven't touched NRAS for a long time – but am curious to know if the 90% is widespread. No need to divulge who.

Be interesting to see the whole equation. Does the debate consider all ongoing property costs such as rates, insurance, repairs, etc all of which are borne by the land owner?

The other point seemingly overlooked is that interest rates are very low at the moment – what happens when rates increase by 0.5% – how many suburbs fall off the report on…[Read more]