Checked out the link, FireCeasar.

Did not understand how it worked, the explanation was not exactly that clear.

I saw nothing that compelled me to give it a second thought. Can you give us some more detail as to how it works?

neo25x5,

Are you able to pass on contact details for your broker? Have spoken to 3 or 4 brokers, and while all have been professional & competent, none have really impressed. Would like to find one that really understands what you are trying to achieve and actively supports it.

Regards,

eeshole

Stuart,

Lender 1 has no exit fees after the 1 yr intro period.

Lender 2 has $1800 in the first year, $1200 in the second year, $800 in the third year, then nil after the end of the third year.

I think Terryw made a good point. Things change. Lender 2 may not always have a lower variable rate than Lender 1. After the 1st year, I may be able to…[Read more]

Given that you don’t have a lease it appears that legally speaking you won’t have a leg to stand on. Having said that, a verbal contract is still legally binding, but you would have to prove somehow what the original agreement was, and the intentions of the parties when making the agreement. If there’s nothing in writing, and no independent…[Read more]

Remember that at $300p.w. and 7% management fee the PM is only making $21 a week from managing your property. Hardly an incentive to leap out of bed each morning and shout the praises of your IP from the rooftops.

You could perhaps give them a deadline to get a tenant (and also set a minimum rent) then move on to a different PM if they can’t do…[Read more]

Agree in principle, woodsman, but in this case mum is doing it tough and the 16 y.o. is old enough to take some responsibility and help the family out. It’ll be character building too. A couple of shifts a week at Coles or McDonalds would certainly give them that taste of working life without impacting too much on studies. At award rates that…[Read more]

Hi guys, can I have people’s opinion on which is the better deal?

Lender 1: $1750 up front fees, variable rate 7.7%, no ongoing fees, will lend 70% LVR

Lender 2: $820 up front fees, 1yr intro rate 6.99%, thereafter std variable 7.8%, $35/mth a/c keeping fee, will lend 66.67% LVR.

Given a lend of 66.67% in both cases, I figure you will get an…[Read more]

I went to a Henry Kaye seminar a few years back. Not the $15,000 one, just the intro where you paid $49 and got to bring another person free. There was a money back guarantee.

At the seminar there was nothing groundbreaking, just very general strategy to buy off the plan on long settlement with deposit bond, then revalue just before settlement,…[Read more]

Most lenders won’t touch anything under 50sq.m. Difficulty in getting finance leads to a lack of potential market of buyers should you wish to sell at any time. Lack of buyers means less price growth.

Having said that, the market will determine the price, and even a bad property can be undervalued.

The other thing to consider is that at the end…[Read more]

Hi JoeBorg,

Here is a link to the ATO website which explains how it all works. http://www.ato.gov.au/individuals/content.asp?doc=/content/17023.htm

Here is a link to download the form itself.
http://www.ato.gov.au/corporate/content.asp?doc=/content/43572.htm

Basically I think you fill it in, lodge it with the ATO, they send you back a document…[Read more]

It should also be noted that while the official line from the RBA is that the interest rate rise is due to potential inflationary pressures in the broader economy, Ian McFarlane (RBA Governer) did make comments in a Herald article a couple of weeks back that we have erperienced a wealth effect from passive increase in preoperty values, and it has…[Read more]

JasonBourne,

How do you go about getting to speak directly to the vendors? Do you ask the agent to pass on their contact details? Just wondering how easy it is to get to the vendor, I would think the agent would try and control the whole sales process.

Regards,

eeshole

I concur with the recommendations for Hunter House Hunters. I have personally met with the proprietors and the impression I got from them was that they were sensible, down to earth, and very experienced property investors themselves. They go all over the country researching not just property, but towns, regions, infrastructure development plans,…[Read more]

Hi there learningtoinvest,

The question you have asked opens many cans of worms and cannot be adequately answered in a forum such as this. You need to speek to an accountant/lawyer to get some advice as to how the different structures will affect your particular situation.

Having said that, I and the others on this forum can provide some general…[Read more]

Dazzling,

Can you tell me who your lender is? I’ve shopped around a bit and can’t find any fixed rates below 7.7%+. I’ve tried ING, IMB, Suncorp, Westpac, Citibank, Public Trustee NSW, and spoken to 4 different brokers. Are you getting a special deal or is that what your lender is offering to the general public?

Zippys, have you made any…[Read more]

Or you could leave it as is – I think you can still rent it out as 2 dwellings – you’ll just need to find a way to apportion the electricity & water between the 2 tenants. Perhaps charge a set monthly fee for these from each of the tenants and pay the bills yourself.

A good property manager should be able to advise you on this.

I believe to do this you might have to strata title the property, or subdivide it.

I’m not an expert on this subject, though.

Monopoly, I honestly don’t remember ever saying I was 16 (well at least not in the last 19 years or so). I think you might have mistaken a post from someone else.

Never mind. Sorry if I did suggest it inadvertently. My wife would agree with the mental age bit.

Back to the subject, it seems Westpac has reasonable commercial fixed rates, and they…[Read more]

Hi Calvin, thanks for your post. I take your point about child care costs taking a big bite out of the second income. In fact my wife stopped working after the birth of our second child for precisely that reason.

When I made that comment I was more thinking of families where all the kids were at least at school and therefore childcare costs…[Read more]

Qlds007, thanks for the reply. I’ll try Orix.

A broker told me apparently Suncorp will do smaller loans too. Rates are quite high though.

Monopoly, why do you think I’m only 16? That’s probably my mental age, but I can tell you it’s been a looooooong time since I was remotely close to 16.

Sometimes I wish I was 16 again.

For anyone else…[Read more]