Not the friendliest reply… 😕

The OP mentioned the numbers don’t work, hence he came to share here.

That said, I also disagree with some of the ‘problems’ you raised.

Property doesn’t have to be a long term investment. It is possible to make short term gains, although it’s less common and it’s good for cashflow, not so much for wealth…[Read more]

Not the friendliest reply… 😕

The OP mentioned the numbers don’t work, hence he came to share here.

That said, I also disagree with some of the ‘problems’ you raised.

Property doesn’t have to be a long term investment. It is possible to make short term gains, although it’s less common and it’s good for cashflow, not so much for wealth…[Read more]

Thanks for letting us know.

For the benefit of all, here is a good post detailing what I think about LMI 👍😎

Thanks for letting us know.

For the benefit of all, here is a good post detailing what I think about LMI 👍😎

Thanks for letting us know.

For the benefit of all, hereis a good post detailing what I think about LMI 👍😎

Are you dealing directly with the bank? If so, you could ask them why they want to have the LVR so low. Maybe it’s a borrowing power issue?

Hi Ozzy,

If you bought and rented out without living in it first, then yes, you’ll probably need to pay CGT for that period.

If the properties are crossed, then when you’ll sell the PPOR, the lender will want to do a valuation on the IP to ensure that they have sufficient security. Only then the lender will discharge the mortgage on the PPOR,…[Read more]

All good, was just surprised at the super high IRR value 😉

Anyway, well done! Excellent flip 👍😎

Excellent detailed post, Wilko. Well done! 💪👌👍

I do my calculations very similar to yours except the holding costs are on 105% (as funds invested for the purchase would have otherwise offset another property).

How do you calculate internal rate of return?

Impossible to answer, I reckon.

It depends on how much cash you have, how much the Reno will cost, how much more will the LMI cost, how much you want to have in cash for a rainy day (should one arrive) etc.

Online research is a great thing but sometimes speaking to a pro 1-on-1 is easier and faster. I’m sure in one meeting with Terry you’ll get specific and relevant information that may be extremely valuable to you 👍😎

Hi Greg,

Good on you for thinking ahead in order to get ahead but….as mentioned above, you could tweak many numbers in your calculations and get to any profit margin you’d like.

My suggestion would be to do as I do:

1. base your calculations on an actual property that is up for sale, and
2. learn from others by attending property investors…[Read more]

Hey Tim,

Something seems off to me. $800k for 7 units means an average price of $115. Does that sound right to you based on your local market knowledge?

If so, how does the vendor’s agent justify the price for the block to be higher than strata? Usually it’s the other way around 🙈

You need this for a specific property or properties or for a suburb?

If for specific, you can engage a valuer, they’ll be able to provide the most accurate estimation 👍😎

1. Commercial may be easier, yes.
2. Smaller lenders seem to be filling the gap the major banks have created. Having a great broker on your team is always a + 👍😎

Usually LMI on LVR of 88% and under are way cheaper than on LVR above 88% so this may be a consideration?

I really don’t know. People have changed laws in the past via many ways (from social/public demand to lobbying to protesting to pationing). It’s worth noting that even if the law changes, it probably won’t change in arrears, just for future cases but if you strongly feel it’s unjust and want to change it, maybe contact your local politicians…[Read more]