Hey vluu27

I’m sorry to hear of your predicament.

I suggest that you make a journal of all your dealings with PCG – write down the details of every single meeting and telephone conversation you had with them. Try to remember dates (even if it’s a month if you can’t remember the exact date), names and even times, if possible.

That’ll help you if…[Read more]

I can honestly say that every single financial adviser that or anyone I know have consulted has universally shied away from property investments other than the family home, and instead strongly recommend investments in managed funds and shares.

Call me a cynic, but I think ksheather is right – because they don’t get a cut from recommending…[Read more]

I’ve heard of this too, but I know exactly how oyu need to structure things in order not to run foul of the self-managed superannuation fund restrictions. One of those restrictions is that you can’t mortgage superannuation assets. If you stuff up and break the rules, your super fund will become non-conforming, and you could get slapped with 48.5%…[Read more]

Oh well – it’s all a learning experience.

Feel free to ask more questions!

Hi Hamster,

My WA accountant said the same thing to me – I didn’t pay too much attention to the details, because I’m not planning to sell until after I retire. I think there’s a technicality in the ITAA which gives you some CGT exemption.

It’s definitely worthwhile checking it out before you do anything, because you’ll probably have to ensure…[Read more]

I’ve been trying to do this for a block where I own a unit. It’s harder said than done, I’ve found, since everyone wants top dollar for their unit. I think it’s much easier for smaller blocks. But I’ve seen it done for fairly big blocks before. And yes, the selling prices are substantially more, and people actually buy it.

One idea you might…[Read more]

Hi Fishoholic,

“Releasing” the equity in your home simply means that you put it up as collateral for a loan you take out to buy another property.

For example, your home is $380k. Assuming it’s fully paid off, 80% is $304k.

You want to buy another property for $300k. 80% is $240k.

This means that you could borrow 100% of the purchase price of…[Read more]

That’s great TrueBlue – sounds like a good example of self-management done the right way. But how much time do you have to spend on managing the properties? I work fulltime (hopefully not for too many more years), and it’s hard enough for me to find time to sort out my own stuff, let alone manage tenants.

Cheers
M

You’re welcome Kavita – keep asking those questions!

I own my property in my own name, but am investigating putting future purchases into a trust structure for various benefits.

A lot of people have been recommending Chris Batten’s report – http://www.chrisbatten.com.au

I’ve ordered one, but haven’t received it yet, so I can’t say for sure whether it’ll work for me.

Might be worthwhile for you to check…[Read more]

picjal,

I thought I was on the 110% loan. But I’ll go home and check, and let you know.

Wow that is cheap, especially for all the benefits that you’d get from using an agent (which everyone else has already posted on). Also, agents will usually be able to get you access to really cheap landlord’s insurance (I think it could be less than $100 per year in some cases).

I would only manage a property myself if I was renting to a close…[Read more]

Westan is right – don’t just give up when you’re so close!

I was paying around 8.5% on my Liberty loan, as recently as June 2003.

I’m still looking to buy, although I’m extremely fussy about what I buy, and always set a realistic price limit on what I’m prepared to offer.

But I have to admit, it is very hard to find a property where the vendors don’t expect to get $20 to $30K more than the market price.

Hi wombat,

The strength of your bargaining position really depends on how your termite clause is worded.

From experience, most termite clauses usually let the seller walk away if he or she doesn’t want to pay to fix the problem.

If your termite clause doesn’t really help, then it’s up to negotiations to try to come up with a win-win…[Read more]

Duo,

This sounds like a great opportunity to get some free money!

If the Vendor reneges on their contractual obligations, they’ve breached the contract. This could make them liable to pay you damages. And if they sell the property for a higher price while it’s still under contract, you could sue them to get the profit you would have made if you…[Read more]

Hi fullout,

I hate to say this, but the stuff the salesman fed you about having to make a quick decision was typical sales drivel. I think that’s quite unacceptable if you’re not even given a chance to properly think over your decision, or to thoroughly read the prospectus.

Your gut feeling about have to do due diligence is correct.

In all my…[Read more]

And there’s an up front fee of around 1% of the loan. However, this is still cheaper than mortgage insurance, which I think is around 1.5%.

I used the Liberty loan – I thought it was great to help give me a leg up into my first property, but it’s definitely only a short term loan, and the people at Liberty actually acknowledge that. I’ve…[Read more]

Chandara made a really insightful comment in one of his posts on another thread – namely that if you start getting property investment tips from your taxi driver, you’d better start preparing for a correction.

Of course, the problem is always when, not if.

I’m personally preparing myself for a correction, so that when it happens, I’ll be in a…[Read more]