Thanks Martin,Your experiance confirms what I've heard.  I have also read that this level of interest is most pronounced at the $300k price point, and things calm down a bit as the price rises.  Chermside is a bit more expensive than Ipswich so maybe the buying won't be as frantic.  But I guess the days of the buyers market are dis…[Read more]

Hi there,Regarding the new v's old, imagine that you are buying a car.  Is it better to buy a new car, or an old car.We could use my car as an example.  When new, it cost $50,000.  It is a 1998 model HSV Commodore.  I am now selling it, and would like to get $15,000 for it.  So over time its value has dropped from $35,000.  But this didn't happe…[Read more]

Hi Tia,I am not an expert in this field, but I can my recent experiance.My bank allowed me to use the rent (reduced by a vacancy factor).  Then for the servicability test, they deducted a fixed percentage of my gross income for taxes and living expenses.  Then the remainder had to be able cover the repayments at an inerest rate 2% higher than t…[Read more]

Hi JimmyD,I would be interested in some of those reports, as well as the Midwood report, but first, is such a thing ethical.  Is there a copywrite that would prevent us form sharing them around?Anyone know anything about this?CheersAdrian

Hi there,Although I haven't been in your position, I can offer my opinion.I am a believer of the buy and hold strategy.  If you buy the best located property you can afford, and hold it long enough (though more than 3 years you outlined) it will become cf+.  You said that the outgoings are $16K.  At a yield of 3% (the best locations have low yi…[Read more]

Hi,

I agree with Richard, the ATO will look at the purpose of the loan.

Unfortunately a lot of people end up in this scenario because they pay of their home loan for many years, then borrow to buy a new home and rent out the existing home. Hence the investment property has had the loan payed down and the new property has quite a substantial…[Read more]

There are several sources and the numbers proclaimed by each can vary a little. I use Australian Property Monitors. Their website is http://www.apm.com.au Residex, state REI and others also track median house prices.

Hi,

Your real estate agent will generally guide you through the process if your unsure. But regarding the deposit and settlement, the deposit and settlement dates are part of the contract. You don’t need approval from the bank to pay the deposit. You don’t even need a deposit, but you offer a token deposit to show the vendor you are serious.…[Read more]