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check out http://www.land.vic.gov.au in victoria I know it is ten years. click on contact link and you will get all the web sites for Australia’s valuer offices but I am not sure if you can purchase 10 years of data from the other states on CD.
You could buy a cheaper house say 50 km from Melbourne in SE suburbs at $170,000 and use all your resources to pay it off as quickly as possible.
Pay fortnightly rather than weekly. Once it is paid off you could sell it and use the proceeds to buy into a dearer house later. Deposit 5% plus hidden expenses is approx 5% to 6%
that is approx $17,000 minus first home buyers grant $7000
loan of 160,000 would be $307 a week in interest. Alternatively use an offset account to put the extra money into as a saved up future deposit and to reduce the interest on your loan. This is a baby step towards owning a dearer house.Having spent four years without a wage I have decided to give up being employed for a wage completely and have started a business. A book that might be good is Rich Dad Poor Dad and cash flow quadrant. I haven’t made a profit yet but I am looking at the long term rather than the short term.
Property goes up in value by 7 percent p/a averaged over the longer term. To work out a future income you need to add the CPI figure to your today figure of required income every year and 7 percent every year for your property value and work out a yield based on probably 4% of the property value. A spreadsheet in excel can forecast this based on a per year over a number of years time frame.
if you rent out the house you may find the first home buyers grant will no longer apply and you will have to pay it back. I remember a news story of a service man who was posted overseas and rented the house out and got into trouble with the first home grant. Would be a good idea to check if this condition exists .
Have you tried liquid magnet made by advil located at 121 cecil street, South Melbourne vic 3205 phone nymber 9693 0500. I bought it at a hardware shop and it seemed to take a lot of oil out of concrete. Acid
could cause concrete to be pitted as lime will dissolve from concrete with an acid.I have purchased property on 30 days. Make sure you have landlord insurance. I use CGU myself . Why I am mentioning this is that a bank may not lend you the money until you have the investment insured and some insurance companies won’t insure until you have occupancy. Also you should be talking with a property manager about getting a tenant as soon as the settlement date occurs if the property is in good order as time wasted is rent lost.
Planning and goal setting are important. If you can project a picture of the future where you can afford more things without any problem due to investing in property this may help your cause.
Dazzling, Try not to be to hard on your partner. It is human nature to spend 110% of your income on instant gratification. To invest in property requires a long term outlook. Maybe you could work out the figures on what the depreciating assets you own will be worth in 5 or 10 years time. Maybe a graph would work better than just figures and then do a graph on what a positive geared investment property would be worth in 5 to 10 years based on a 7% p/a average increase.
You could agree to saving a certain percentage of your income towards property and do the investing yourself.
Also making excuses has more to do with fear of the unknown. Rather than asking why try asking your partner how they feels about property investing.If you had spare cash and invested it in a normal account the interest would be taxed and then inflation would also erode your investment. If you stick it in an offset account you have an advantage of being able to draw on the money if needed , where as if you reduce the loan you might find it a hassle to get a redraw.
Offset accounts are mainly designed around normal home loans rather than investment properties. Primary residence home mortgages are not tax deductible. An offset account by reducing the interest on the loan means that each repayment pays off a little bit more of the principal. This can make a huge difference when compounded over 25 years to your loan.
Also the offset account balance cannot be more than the loan balance.Having done some research shared housing is not covered under section 530 of the Victorian residential tenacy act 1997 it was repealed in july 1998. Try researching the tenacy union victoria web site for possible information.
Also talk with the local council town planner on likely requirements and laws with shared housing.Check on fire regulations.
Contact the local town planner of the council and discuss your shared housing plan. They may steer you in the right direction.From memory it is on the saphire coast in NSW. Merimbula is close to it. Just over the Victoria border. I have heard that it is famous for its game fishing. Bega is an inland town near it famous for its cheese. SEE http://www.sapphirecoast.com.au/bermagui.htm
http://www.southcoast.com.au/bermagui/
http://www.southcoastleisuretimes.com.au/eurobodalla/bermagui.html
I have only been as high up as Merimbula myself .Don’t fall for the mistake of not putting up the rent for a few years as the tenant will realise in 3 years time that they are on a good deal. While other properties have higher rents they pay less and they will soon realise that it will cost them more to find another dearer rental.
My own experience was that my tenant let the property run down and then abandoned the property when I put up the rent after 7 years by $5 a week. While the property was abandoned the local kids came in it and trashed the property.
The first owners grant makes it easier now for a tenant to abandon or trash a property and then purchase their own home.If you use positive gearing you can afford an infinite number of properties. If you take a certain amount of money out of your bank account automatically for investment you will find a way of making do with what is left over.
Byronet,
The term Dog comes from a corporate portfolio matrix developed by Boston Consulting Group in the early 1970’s.
A dog refers to an investment that will not produce the required investment outcome you are looking for like capital gain or income.References
Robbins, S, 2000, Management, published by Prentice Hall 2000, 2nd edition.Booms and busts are also controlled by demand and suppy. As the price of property increases less demand by buyers occurs. If the supply of sellers is greater than the demand of buyers then the market will adjust to reach equilibrium. This adjustment occurs via the price. When inflation rises RBA tries to control it by increasing the interest rate which causes people with loans to incurred more costs which leads to increased sellers. During a slowdown the RBA reduces the interest rate to increase the growth of the Economy which creates more buyers due to cheaper finance. Fiscal policy has an effect as well being the first home owners grant. In NSW the vendors tax has slowed down the property market and reduced the governements revenue from stamp duty (API Jan 2005)
This is general financial advice and you should seek advice from a licenced financial advisor who knows your situation.
Shares are more likely to change price up or down due to their high liquidity.
Banks will not loan you as much money against shares as opposed to property.
Property can go down or the price can stagnate in between boom times.
Property can be invested in over a long time period where as shares may need to be monitored more frequently.
Fully franked dividends have 30% tax paid already and franking credits can reduce the tax you will pay on the dividend earnings.
Property gives you control of the investment and you can add value, this can’t be done with shares.
Shares don’t have tenants,land tax, insurance,rates, water, stamp duty or maintenance.
If you plan to hold the shares for more than 12 months you will get a 50% capital tax discount.
Shares could be a way of spreading your investment into more than one asset class rather than tying up large amounts of money in one property. With shares you need to assess your risk tolerance.
Speculative shares have a higher risk than blue chip type shares.
If you wanted to take out insurance for the shares you should study how to hedge your share investment through put options.
Shares can be invested into with smaller amounts of money like $1000 .
If you wanted to start investing in shares you should read books on share trading and start with small amounts of money while you are learning. You would need to contact a broker to set up a trading account or an online broker.Check the brokerage charges before committing to a broker.I forgot to add that the flues are made of asbestos which also requires an approved asbestos removal company to dispose of.
I have two housing commission built houses in Victoria and have had to replace both hot water services. This is due to the Vic Government mandating the removal of inside gas hot water services in bathrooms. If buying a house with an instantaneous gas hot water service inside the house it might pay to check the state gas regulations. This law change was brought in after a bird built a nest in the gas flue and a tenant fatality occurred from Carbon Monoxide fumes.
