Hi Jamie,I notice the article didn't really touch on finance issues. To me OTP finance is one of the greatest 'worries' with OTP and the longer the OTP the more complex it becomes.

Hi MJP,Nice typo in the subject heading "goof"

JackFlash wrote:
The PI market is completely different to just a few years ago. The old buy anything it'll go up days are over. PI now requires actual investing skill.

Don't disagree with this comment at all.

Put $360K into a property renting for $1100/week. Comparables currently sell for $525KPlough all of the rental income into the mortgage and costs – own the property outright in ~10 yrs. The property will deliver me $57K/annum in rental income and be debt free. N.B. All figures are today's figures.

Hi Tony,It is also called the Retirement Standard. Google is onto it. Just make sure you are looking at the latest figures. http://www.superannuation.asn.au/RS/default.aspxGets updated regulalry (quarterly – from memory) and currently states couple need $55K/annum to be comfortable in retirement. Note the standard assumes the home is paid of,…[Read more]

Hi Beau,I tend to keep things simple. Percentages of growth and nett rent return all sound fine but what do they mean in real dollars?It is the real dollars that will determine whether or not you have achieved your goals. Work out what you need/want in retirement in todays dollars and work towards this target. Don't forget to upgrade your…[Read more]

One more thing – will the work required consume all (most) of your projected profit?

If the property is hsowing signs of 'wear and tear' now definately get an inspection done and then weigh up your options. If the property is showing signs of wear and tear now will it require additional hands on involvements from yourself? Is this feasible?You may also need to consider the extent and nature of the overall report and, with the…[Read more]

Don't know the whole picture so some of my comments may be off the mark. While you will have a mortgage of approx $40K left on your existing home loan I would think that would be very manageable. While your initial aim was to clear the debt entirely getting all but $40K is a bloody good effort I would think. Who knows what the market will be doing…[Read more]

As a rule thumb I would not be adverse to selling the IP even if it means realising ~$45K less.But before I preovide some more thoughts I just need to clarify – are you saying if you sell the IP you'll only be left with a mortgage on your home of ~$40K? If not some more numbers would be helpful.While waiting for a response – have you factored CGT,…[Read more]

Hi JAck,Property is a long term investment and you made your purchase pretty close to Perths peak. Since then the market has flatlined at best and dropped in other parts.In spite of this it looks as if you have managed to make some profits (albeit paper ones at the moment) in the same time frame. For me I would be hanging onto this property…[Read more]

As JAc has said for question you have to ask is what LVR can you get on these properties. 90% on a student apartment may present some challenges.

Hi abcd,Notice the summary text states "our meticulous research' and 'the town is screaming out for' and 'actively seeking better quality housing' Sounds like a marketing spiel to me.2500/3000 still seems too small.LMI being available is a good sign though. I live 20kms from a major regional city in WA and our local market bears no similarity to…[Read more]

Richard,It's that Qld broker speak – gets me everytime.

2500 people – too small for me to even look at.A town that small is subject to the vagaries of the main industry, commercial activity or mine. A sneeze in that sector of the economy could result in a major knock to the town's economy and employment numbers. Being a small town may also see additional finance hurdles you need to jump through. I…[Read more]

Asea – if the home you are looking at could become an Investment Property at some stage in the future, and replaceed by another home, you may wish to consider an offset account structure. This will give you some flexibility with your funds moving forward.

HI QM,By all means speak to a couple of brokers to find out what they suggest BUT do not get two pre-approvals done. Pre-approvals will result in an entry on your credit records and if you have too many of these other lenders may shy away. The brokers should be familar with the various banks policies and should be able to determine your borrowing…[Read more]

I use PIA.Find it pretty helpful.

Check your package details Henry. The packages I am on allow one free valuation (from memory) per year.

Hi Scott,Adding to your question.A 'few' years ago I grabbed a 'Become a Franchisee With Us'  DVD set from a large financial planning organisation when I had a bit of spare time. At one point the DVD explained small FP's struggle to get their heads around a broad range of financial products due to compliance requirements. The DVD went on state…[Read more]