John – also if you are selling something like this get onto rp data and do the comparables for every sale for the last 18months for your postcode. If you want to be thorough do a postcode check on a nearby but aspirational suburb to see sale prices in the better locations.

You will be able to compare listing price with sale price and this will be…[Read more]

John – my personal experience is that otp sales are harder just because some buyers and agents cannot visualize the project, that is, what it is going to look like. Your designer may be using revit or another program that is going to help you build 3d models etc but it may not give you the correct renders and art work that you would need for a…[Read more]

Todd – as the others have said there is no issue with this. NRAS would be an example – or a property that simply pays for itself. Depreciation is always a great reminder to me that it is our land that is appreciating and not the building we own placed upon the land. Bradley could speak to this but getting reports done on older properties is…[Read more]

Okay, have not really been on the forum since march. This was a huge conversation starter(not). Few things have changed since then. What about now? Who is willing to reveal the burbs that are paying for themselves?

James – does he work in Japan or work in OZ?

Would have to agree with Kristin on this one. Generally, it is better to go for a specialised policy. Probably the most significant risk to a landlord is loss of income from illegal occupation. This happens when a tenant for one reason or another decides that they are not moving out and also not paying rent.

You would want a specialised policy…[Read more]

In addition to the options mentioned above have been having success recently using 6 months business banking statements rather than bas returns for low doc clients. The annualised income from the last 6 months will need to reflect what you declare. As stated not a lot of info to work on here. Rate is better than most lenders standard variable at…[Read more]

HI Zehra – you have mentioned that due to certain circumstances your cash flow is a bit tight. If you are considering refinancing for this reason it is important that you sit with someone you can trust to have a look at your cash flows now. Why are things tight? Is is just the mortgage or do you have other financial pressures that are causing the…[Read more]

Firstly what are your capital growth expectations for your location. That is, why did you buy there in the first place and what will make the area grow. Capital growth is the end game and the cash flow of your portfolio is merely the fuel that drives the car.

On an IO loan depending which institution you are with you could probably save around 1%…[Read more]

The answer to that question will probably depend on your investment goals and strategy. The main issue with NRAS that I believe is most critical is how much of your equity or cash you will need to use to get into the investment – what lvr is on offer (of course you would not even be looking at the location and property type unless the…[Read more]

I think 25bps is a good call. Leaves the RBA plenty of room to move on monetary policy. Don't forget we still have the highest cash rate (in the world?) or up there at least.  There is still a lot to do in the area of fiscal policy reform and a downturn may speed things up in this area, who knows? Not that we would wish it.Company tax rates need…[Read more]

Its a good one – I just got an email yesterday that they are back in the studio market but i think the property mentioned here is just too small.  Maybe for Kirsty L find a better property ( one that makes better use of her equity ) combined with that product or something else might get her going on the right track.

Richard – do you think the cba property share might help – sep loans over the same security. Can't seen them doing 30sqm though?

Yes Terry and people who could be significantly worse off because they are still being told to "leave information out" of applications by accredited fp's and brokers because it seems to suit at the time. It is still happening. Craziness. I am getting a couple of these a week ie people who say they were advised to omit facts from applications.…[Read more]

In the current market ( and really just to throw in a short commentary and not get to involved) when seeking cashflow it is critical to ask:

1) Is the property CF+ (cashflow positive) because prices are falling in real terms. Are asset values falling adjusted for inflation?

or

2) Is the property CF + because you have a situation where adjusted…[Read more]

Qlds007 wrote:
By the way we charge £995 as a sourcing fee for the UK which is circa $1400 AUS.

Richard a sourcing fee of 1400 is very reasonable for that type of work (given how much effort goes into getting contacts and starting things like that up) particularly if you can get direct access to vendors. Think you are on a winner with your uk…[Read more]

Last time we painted out an IP we did it ourselves because the tenant left early and we only had  few days to do it. The paint was really cheap – but for a reno (sale)? i think best to get at tradie on a fixed price unless you are a gun painter. They might give you a level of finish from 1 to 3 in their quote and detail the number of coats etc an…[Read more]

The person I would recommend closest to newcastle is in cessnock. Too far? Otherwise I can organize a quote through our online service for you.

Watch funding costs carefully and make sure you know the exact point at which your funding costs will make the property neutral. Offset. Non Deductible debt first but here is the MOST important thing. Put your extra cash somewhere you can get it back if you need it. Eg if you pay out your car loan that cash is gone. Think cashflow casflow cashflow…[Read more]

Wait 60 days!