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?

oceandeep wrote:

Thanks again!
I think I need some in-depth step-by-step info. I’m obviously missing some steps here, which is why I’m not getting my head around it. I’ll try to find some comprehensive information online so I don’t drive you crazy with questions!

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 👍😎

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 🙈

steven wrote:

Hi I am new to property investing in Australia. From the news update, i know there are strict restrictions on lending by the banks for residential houses for non residents.
1. Would it be better to look at commercial or residential listings in this instance?2. Are there any good banks or mortgage brokers that can help me get finance for non-residents?
many thanksSteven

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 + 👍😎

Andrew2017 wrote:

Any possible to change the law? What is the process?

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 and/or the governing bodies and see how and what can be done to change the law?

Terryw wrote:

THe law is clear. You contracted to pay a certain amount and you didn’t – you breached the contract. The other side incurred a loss due to your actions and they incurred additional costs which you should be liable for. They shouldn’t be liable for your actions.
What is there to change?

I think the OP is not disputing that he breached the contract. I think he’s saying that he believes the other party should have contacted him, at least once, via email and phone (which they had on file) instead of just using the mailing address and then giving the case to a debt collector which added their fees on top of the original debt and interest. Makes sense to me to have the body Corp use “all means possible” and not just the mailing address.

Yep, what the bigs are dropping, the smaller ones are picking up. Saw an article recently that also non-residents moved from the big 4 to smaller lenders so overall their % in the market is about the same as it was before…

I reckon 10% is a low profit margin…

I don’t know the law but I would check with the tribunal in your state and/or a solicitor that specialises in such matters. If the law is on your side, they should be able to help. If it’s not on your side, then you could try to change the law.

I would give @terryw a go 👍😎

Hey mate,

Totally agree that the step that needs to be taken, in order to avoid long waits for the market to raise the value of the IP, is to manufacture growth somehow (reno, subdivide etc). This creates very quick equity that you can use towards the next purchase 👍😎

No real risk to sign a conditional contract as you’ll get your deposit back if finance fell through, just make sure the wording of the finance clause etc is clear(!). Some vendors wouldn’t agree to a lower than 10% deposit but some will, bought a property recently and during the back and forth of the negotiations, I threw in a “ok, we could agree to that if the vendor agrees that we pay only 5% deposit”.

There are great networking groups in Sunshine Coast, Brisbane and GC led by Matt Jones. If one of them is close to you, I suggest going. There’s a GC one later this month, I plan on going, should be fun 👍😎

Reg Logan: can you do something with the land? Even if not, some tenants prefer more land (privacy, kids can play, garden etc), I guess it comes down to the quality of the property and the tenants prefs in that area. A local PM could be a great help with this matter 😊