further info: the property is located in melbourne

biggest problem is obtaining finance.banks normally wont allow for anything less than 50m2

Yeah, In a cases like yours, make sure you get your broker to 'harass' your bank to speed up the process. I had a case like that a while back with the vendor threatening to to take the deposit and void the contract. 

You should put in an exit strategy!What if their situtaion changes and wants out? All well and good but you must think of worst case scenario

Why not get a pen and paper and draw one up before you meet him?It's fast, basic and will save any unnecessary expenses.

May I ask what suburb/ state this house is located?I've seen land less than 700m2 be subdivided into 3 titles before…sounds very odd

Thank you again Mike for the additional reports

Mike, Thank you for the Report. You're a Top Bloke!

Anything above 5.5% is good considering that a savings account returns approx 5%.Purchased an inner-city apartment for $310k, rent at $415pw. Gross yield at 7%Properties like these are out there, you just need to find 'em

Like yourself, my girlfriend and I (both aged 23) brought our first property last year where we lived in it for 6 months (getting the FOHG) and have never looked back since. We're about to buy our second IP.Unlike many investors on this forum, we went down the old fashion path of placing the 10% as deposit as opposed to using Vendor Financing,…[Read more]

No worries Tugger!May I suggest you use gumtree.com as there are people who advertise that they need rental properties.The good thing is that advertising on this website is free and gets allot of traffic.HOWEVER! be very careful as most people on this website were not successful in obtaining leases from agents.So double check references and i…[Read more]

As an Accountant and a fellow Investor, I suggest putting up the rent and ignoring the tax benefits.In my opinion, a loss will be a loss!At the end of the day, a dollar in your pocket is another dollar for you to invest in before tax time!I'd rather gain an extra $1 than save $0.30cents in tax gains. Get the drift?Only works when you have a…[Read more]

Following on from SNM's comments, go to the consumer affairs website for TAS and read up and print the contracts, forms etc…In Victoria, we use http://www.consumer.vic.gov.au/CA256EB5000644CE/page/Renting-Landlords?OpenDocument&1=910-Renting~&2=20-Landlords~&3=~I've been doing this for the year or so, not so hard!just make sure you take out…[Read more]

Hi Nat,You should try auctions held every Wed and Sat.They are new or ex demo and generally at 70% off retail and below wholesale prices.There's GraysOnline and Fowles Auction as well as others in Melbourne.Good Luck! 

Hi Lucigoosey,Since my apartment is nicely located in the inner city as well as being nicely renovated, i had the reverse problem of which tenants to choose!I did not use the services of an agent and paying the 8% commissions + advertising fees + listing fees etc.. saving me about $1,500-$2,000 paI did the whole thing by myself and found that I wo…[Read more]

Research, Research and Research!Knowing the area is very important as well as your target market.In my case, it was young professionals so i purchased the apartment close to the city, close to trains, trams and the bars on chapel st.80% research, 20% luck

Hi xya,This is my first ever post but thought i'd share my experience with you.I purchased my one bedroom apartment back in Aug last year in South Yarra and the agent told me that the rental return was $280 to $320 a week. 6 months later, i leased it out for $420pwAlso didn't bother to use the services of an agent so also saved on their fees &…[Read more]