Hi Maternic,Auctions are a different ball game as Jac has highlighted.By all means go to the auction but keep your hands in your pockets – use this one as a learning experience and then spend some time understanding the legal intricacies of auctions. They are different.

duckster wrote:
I was reading the newspaper the other day and it stated 11,000 houses ($2.5 billion) had been foreclosed on in the last 5 years

Hi Duckster,Going back four years or so I happened to hear Michael Matusik speak at a seminar in Brisbane and one of the stand out comments for me was the number of people claiming 'mortgage stress'. At…[Read more]

HI Igino,Was with the big four – I understand the limitations are still (as at end of 2010) in place. I don't live in Melbourne so I am not across all suburbs. For me you need to ask yourself the question why Melbourne again? For what it is worth I suspect Melbourne (in general terms) has run its race for a while, especially given the good…[Read more]

Hi BelleStar,Admirable aims and goals for sure.A key aspect of being a property investor is borrowing money. This should be your primary focus at this stage. Maximise your chances of being able to borrow money by establishing a savings pattern, ensuring you have no bad debts, haven't taking out personal loans and/or motor vehicle loans which…[Read more]

We have always used QS that actually visit and inspect the property. They are the experts and know what they are doing. Remote QS reports – meh.

Need to be sure you can onsell – otherwise you will be required to settle on the property. This stragety was marketed big time to many investors who bought into Docklands etc in Melbourne 7/8 years ago. The early birds did OK – the latecomers got caught holding the baby.

Also look at the ATO website for general tax information relating to rental properties.http://www.ato.gov.au/content/downloads/IND00237831N17290610.pdf

Hi Igino,I understand a lot of marketing companies sold a lot of properties to investors in the Point Cook and surrounding areas. The sales were so out of proportion the mortgage insurers would not provide LMI to loans over 80% in the area as recently as 15 months or so ago as they felt over-exposed.I do know rents in the general area have flat…[Read more]

Hi WS,It really does depend on your 'bank' and what their policy is.One of our banks has just rolled our I/O period out beyond year 10 without batting an eyelid. Mind you they did say they wouldn't extend the I/O period for five years beyond Yr 15. Mind you they did say that after year 10 too. Another one of our banks has also said they will…[Read more]

website?

She keeps a MYOB record of all the ins and outs for each of our properties + other investments I have + business accounts. At the end of the financial year she produces a hard & electronic copy of each 'job' (I think that is what they are called in MYOB)She also balances the books for me as each bank statement comes in – there are a 'few' and…[Read more]

Some useful tips herehttp://www.docep.wa.gov.au/consumerprotection/PDF/Publications/Renting_out_your_property_2010.pdf

We use lever arch file for each property similar to house call including depreciation report but excluding all other tax papers. These are filed in a separate combined file as are related bank statements. I employ a MYOB proficient book keeper for electronic records of property transactions. The electronic file is provided to my accountant at tax…[Read more]

Off the plan has a number of potential issues you will need to consider before proceeding. 1. Get a reputable and independent solicitor to check contract documents.2. Off the plan plans often allow some developers leeway to adjust plans slightly. This can see some adjustment to sizes etc.3. Long term off the plan properties can be problematic from…[Read more]

Too many small and very old units in Glendalough for my liking. Still money being poured into Midland albeit slower than 8 years ago. The Midland redevelopment project must be getting close to completion by now. Don't neglect some southern Perth suburbs – rent returns in these areas can be better than those achieved in the northern suburbs.…[Read more]

Not only is it an issue of size but also an issue of 'banks security'.Investing in property is often about borrowing money – no point trying to invest somewhere if the major banks/mortgage insurers are uncomfortable lending you money to buy there. If you have somewhere in mind make sure you ask the broker about lending suitability of your chosen…[Read more]

You are the one who signs your tax return and the onus is on you to declare things properly. I am sure there are individuals out there who do not fully disclose matters in their tax returns. Doing this puts you at risk of gettign offside with the ATO. In my humble opinion – not worth waving a red flag under the ATOs nose as there is more to be…[Read more]

But keep all purchase and sale records to prove CGT exemption. An audit by ATO may show rental income earned by the property but no CGT exemption. This may lead to ATO wanting to know why there is no CG declared.As with all matters tax – speak to an accountant before doing anything.

Property Passion wrote:
OK well i waalked into the bank "

Therein lies the problem – don't walk into a bank, see a broker. They have access to a range of products and lending institutions and should be able to help. Banks are limited by their products brokers are not.

Hi Kidja,Just doing a bit of browsing when I cam across your questions.Given your home is purchased pre 1985 then you have significant capital gains advantages that I would preserve under all circumstances – that is do not sell. Questions 1 and 3 are, to me somewhat similar with the only difference being whether or not you retain your existing…[Read more]