Hi JP,Never bought one – probably never will. Being OTP there will be significant financing issues you will need to consider as the vendors and their contract will require you go unconditional within 30 days (or similar) BUT the bank will not provide unconditional finance until they can value the property – and this only happens right at the end…[Read more]

Not a broker so take what I say with a grain of salt.An early in the morning post but things I look for are:1. Serviceability – this is the biggest for me.The other factors considered, and in no particular order, are:.2. Loan to value ratio on offer for the property being looked at. 3. Length of interest only period.4. What is involved extending…[Read more]

Yes

Freckle wrote:
Someone can correct me if I'm wrong but I was under the impression that with regard to property there is a legal requirement to disclose anything material to the sale and that "buyer beware" is not a defense. In contract law (tort) deliberately misleading a buyer would be considered as reason to seek damages and have a sale…[Read more]

brizziegirl wrote:
Two years ago we refinanced and moved to Commonwealth Bank and created a LOC. We have used 2/3s of the LOC and we previously both worked full time making $100k and $50k. Now we make $100k between us.

When assessing your serviceability the banks will assume your LOC is fully drawn and their calculations will be based on a…[Read more]

Reckon you are better off with someone who owns and runs the business and who are also property investors themselves.Plenty of brokers on here who have gone on the line to share their knowledge without them being 'exposed' for a lack of knowledge. I'd give them a call first.

REIWA Rivervale StatsClose to the city – has Great Eastern Highway as its major access road. Currently undergoing major widening and realignment. Would endorse WI comments – much of Rivervale has been targetted by developers and suitably zoned property will attract a premium. Mixture of old and new property in the area.

wakebrownb wrote:
  Recently I have read quiet a bit about this not necessarily being the best option for long term wealth generation.

Hi Wake,Cashflow V capital growth is one of the never ending property debates.People who tend to follow one strategy over the other is often in a position to make a good case for their preferred strategy and,…[Read more]

Shiny_Suit_Man wrote:
However there maybe a fair bit of stuff in there that you might not understand, but thats what mums and dads are for..

Not necessarily so.Sometimes parents are the last place you should be looking for property advice from.  If your parents are into property or actively encourage their kids to spread their wings then they…[Read more]

I would also add http://www.rba.gov.au/ to the list. Nothing beats reading transcripts or hearing various speeches, meeting minutes, market & economic reports from the national decision makers IMO.Also look at SQM who do a weekly report/newsletter thingy at http://www.sqmresearch.com.au/news.php

Some random thoughts early in the morning!You will need to consider the purchase price she is asking.What price are you prepared to pay?Whether or not she has family who may have their noses out of joint if is is perceived that you have lowballed her.Is she wanting to remain in the property? If so……………………….Is she going to pay you…[Read more]

Hi Liz,I am not a broker so take what I say with a grain of salt.It sounds like you are a little fixated by interest rates – interest rates are only part of the finance equation as you also need to consider serviceability, or, in other words, how much you can borrow. Thanks banks have different servicing calculators and you may find that another…[Read more]

dangermouse99 wrote:
 im trying to start a portfolio so I can eventually quick work (5-7 years) and live of the income from these IPs. Dean

HI Dean,That timeline is very ambitious – you may want to adjust your time frame a little.Nothing wrong with what you want to achieve – might need to be a little more circumspect as you will need…[Read more]

Hi Brokota,Given your stated goal is 35 yrs away this means you have plenty of time for your plan to be fulfilled. Quite simply the more time you have the more chance you have of succeeding. Keeping an eye on both the growth and cashflow aspects of what you are doing and you should be fine. You may wish to fine tune things a little after taking…[Read more]

zanymrie wrote:
Then they will put together a plan to pay off own home sooner by capitalising the interest on the investment property.

Hi Marie,The ATO has recently ruled that capitalising interest on the investment property is no longer allowable from a tax deduction perspective. On this basis you may want to re-think this aspect of the…[Read more]

Hi Dub,Not only are there the financial consideration there are also the emotional considerations.A 'lot' of our lives revolve around work including hours per day and our social circles. To a large extent the daily patter of our lives is semi-organised for us by virtue we work 8 hours per day. Take away the 8 hours per day and a gaping hole is…[Read more]

Cattleya wrote:
ATO will only approve your PAYG Tax Variation based on your previous year's tax return. if you did not get any tax return last year, you would not get any tax variation this year.

The PAYG ta variation is a forward estimation of next (or the current) year and has no relationship with  the previous years return. While last y…[Read more]

Hi RJJK,Approval delays can be minimised a little by working with people who know what they are doing, buying property with long due diligence clauses so a lot of the work can be done before you pay anything and thereby reducing your costs, talking at length to the relevant planning departments and so on.  Developing is very much a risk V reward…[Read more]

option 2 can be profitable and, at the same time stressful. Such a business venture should not be entered into without extensive discussion. Make sure you have a good broker and accountant onside to outline the pitfalls of such a venture. How stress proof is your friendship? It will be tested – moreso is the case if neither of you have development…[Read more]

On topics found these couple of articles. The effect of working longerReverse Mortgage Article