mattsta wrote:
  If it were me though, I’d invest somewhere in Melbourne, preferably the east side

Why's that ? Melbourne would be amongst the last places I'd be looking at the moment. Seems to have overshot the market in recent years, rental vacancy rate heading north when I last looked, inner city over-supply looming when I last looked an…[Read more]

Small towns increase your level of risk. Make sure you increase the amount of research done if you are looking at smaller towns.

Entry level in Port & South Hedland is very high. BHPs outer port construction has received final approval and will move into construction mode. Hedland council is currently undergoing a major zoning/planning review of all land in the South Hedland area.

If I was in your shoes I would go with Terry's suggestion. Whichever option you choose just make sure you do not over extend yourself. Interest rates are set at pretty low levels at the moment. When doing your sums make sure you factor rate increases into your household budget.

Hi Steve,Give Deppro a call – they do have a Perth Office. http://www.deppro.com.au = there will be other companies try google search.

HI WI,Century 21 Safety Bay manage my property in Rockingham. T: 9527 3300Solid, not spectacular, but might be worth a call.

You need to find out how the $30K is funded and where it is coming from. Until you know that all is pure speculation.

wendywoo wrote:
What are the questions I should be asking myself to work out more clearly what I want to achieve?

Hi Wendy,A key question you may wish to answer is, '"How you intend to use the properties in your 'retirement'"Very basically and simplistically if you see yourself living off rent then you need to focus on cashflow. If, on the…[Read more]

Hi Wake,If you have $30K sitting around I would suggest you plonk it in an offset account linked to your home loan while you work out the next phase of your journey. The key issue you'll need to address is your apparent limited equity – sometimes there is a time to wait while growth occurs and equity is released. You may be at that stage. I…[Read more]

Hi Jim,Is there any particular reason he has only saved $5K at the age of 48?This may sound harsh and without knowing the 'ins and outs' of your mates position I may well be totally off the mark. If so apologies in advance. Based on the limited information provided the first question your mate needs to ask himself is – does he have the financial…[Read more]

Tracey B wrote:
When purchasing I always ask myself:  Will this purchase take me closer to my goal or further away?

This is a great question Tracey. So simple yet oh so important. Wendy – without trying to pull the rug out from under you or anything like that.  You really need to understand what you are trying to achieve and Tracey's qu…[Read more]

Hi Mick,There is a nexus between depreciation and capital gains tax but the key thing is the ATO can make a calculation based on what you could have claimed rather than just what you have claimed – see below extract from the ATO's "Rental Properties Guide 2011" "You must exclude from the cost base of a CGT asset (including a building, structure or…[Read more]

Hell Terry – Kris will now spend another 3/4 years learning about trusts

Find out how your friends got their properties tenanted and follow that trail. Some companies have preferred agents in selected localities. I suspect the bigger companies prefer to work with agents as they like a 'professional'  in the middle between them and the landlord.

newbiebeginner wrote:
buying an investment holiday unit on the sunshine coast,

Generally speaking holiday units do not make good investments. Make sure you speak to a good broker and talk through the financiing of this particular property. You will probably find the lending institution will see increased risk in this type of investment and will…[Read more]

Hi Mandy,Terrible news. You should also speak with the bank to let them know of the looming hardship. Make enquiries about converting loan to interest only immediately – this will relieve some of the financial pressure you are under. Also recommend speaking directly with the bank about their hardship provisions. They may/should give you a release…[Read more]

Shiny_Suit_Man wrote:
  Does the offset account come into play with the equity or is it literally based on what you have paid off the actual loan? 

When assessing your level of security banks will assess you on the limit rather than the balance of the loan.  

west57 wrote:
  I would conservatively estimate current market value to be $350,000. I have $90,000 still owing on the mortgage.

The bank will assess your asset level in conjunction with your income level. Based on the information provided your equity position is assessed as follows: 80% of property value ($350) = $289K less existing debts ($…[Read more]

I wouldn't even stop to buy fuel in Roebourne and that was 20 years ago.

I might add the outlook for the Melbourne unit market is not attractive. Over supply and much in the pipeline with a rising vacancy rate make inner Melb unattractive at the moment.