Hi Anita,

I can understand why you’re confused. Our personal strategy at this point is for high CG’s in 2-3 years. The trade off is that we have negatively geared IP’s. One IP has increased in value by about 40% since offer date. I settled 2 months later so in 5 months I’m looking at a $60K net profit after selling fees and CGT. It’s only…[Read more]

Gattaga,

If access is an issue then i would say yes. If the driveway is cracked, unsightly and generally letting the property down and a new driveway would add street appeal then possibly. However, if the driveway is on a par with the rest of the property standard wise then I doubt you’d get your money back. In this case I reckon you’d get…[Read more]

Leewizza,

You can definitely put in subject to clauses in your offer. We recently did a subject to satisfactory roof inspection on a property, Offer was accepted but we pulled out due to unsatisfactory report. However, in your position with the unit needing such an extensive makeover, I’d be inclined to get the inspections done prior to…[Read more]

Matt,

Are you familiar with Excel? If so this is an excellent tool for setting up your budget. About 18 months ago I set up a very detailed annual budget (FY not CY) setting out all our income & expenses including housekeeping, entertainment, fuel, start of school expenses, club memberships etc etc. Budget is set up on cashflow basis (eg.…[Read more]

bomandlouisa,

Just guessing but I’d say your not from WA and/or have never travelled out to either of these two towns??? If you have, I’d suggest that you wouldn’t even be considering Laverton. Kambalda is better but only due to closer proximity to Kalgoorlie. There has been a lot of talk about Kambalda lately with big boost in mining activity…[Read more]

We’re still in the infancy of our investing but so far so good. Recent valuation shows 40% CG for IP no. 1 since purchased last Sept. so we are very happy indeed and have also recently secured another IP. Just about at our servicablity limit now though so will have to sit tight for awhile. Looks like I’m gunna have to return to full-time work…[Read more]

Andymitchell,

Firstly, congratulations to you and your wife. You are about to embark on the most wonderful, frightening, rewarding, frustrating, important role of your lives. It’s easy to say I know, but try not to let your financial situation take the joy out of it – everything will work out.

When my husband and I were expecting our 1st…[Read more]

Personally I wouldn’t touch them – I’d rather pay a little bit more for an IP and not have the worry about whether or not it can be rented. Realistically you would probably have to charge a bit less rent to attract a tennant than you would for the same property situated away from the motorway. So your yields and out of pocket expense will…[Read more]

I don’t think you could go wrong anywhere in that south west coastal corridor. The seachange phenomenom looks like its here to stay and this region has plenty to offer. Smarter people than me are predicting strong CG’s of 15-20% over the next 12-18 months at least so the question IMHO is really which towns/suburbs will get the most CG??? Will…[Read more]

voigtstr,

Don’t get disheartened and stay on track. Eventually you will get there. Then if you’re serious about building your wealth through investing, you won’t ever fall into the kind of debt trap again. Sure you’ll have debt but it’ll be the kind that is wealth producing such as IP mortgages. I cringe when I look back at some of the cash…[Read more]

Like some others have stated here, I see no sign of the Perth housing boom slowing for at least another 12 months. Even then I’d be surprised to see anything other than a minor correction before things settle back into “normal” historical growth patterns.

The thing that is hard for eastern staters to understand is that unlike most other states,…[Read more]

GrossRealisation, forgive me if I’m being dumb but in Ganakars original post he stated he was looking at I around $250K. Your scenario for +ve CF sounds great but you’re talking about developing with an outlay of $640K plus costs. Hardly comparable. Even if one had the necessary equity to get into a deal of this size, they would need to be able…[Read more]

Hi Ganakars, As has already been said here, +ve CF properties virtually impossible to find except maybe in the very small towns or mining towns. Even in these property prices have been driven up by demand from +ve CF investors so they aren’t as good as they might have been even IF you were willing to overlook the lack of true growth potential in…[Read more]

Venno,

Have a close look at Coogee. This is a beachside suburb not far south of Fremantle. The proposed marina development has recently received approval and traditionally this kind of development has a positive impact on property prices. I’d love to get in that area myself but it’s a bit pricey for us. However, your $450K should will…[Read more]

Hi Dazzling,

I knew there are others out there like us so it was heartening to hear from you and also that your relationships eventually normalised. There is hope yet!

I honestly believe that a lot of the resentment from family and friends that successful people encounter along the way is not so much that these people don’t want us to be…[Read more]

KG, have to agree that subdividing the block will probably give you the best return. Other than that, spend a little time and money sprucing the place up. Try to modernise the interior by painting, new light fittings, window treatments and floor coverings. If the place has ceiling fans consider replacing with nice new ones, particularly if the…[Read more]

Work colleague recently purchased a town house in Hamilton Hill just south of Freo. After his 2nd inspection he told the agent he was ready to put in an offer. When he told her his offer she refused to write it up saying that it was an insult to the vendor (circa $420K against $450K asking). My colleague was very taken aback by the agents…[Read more]

Dr X, for what its worth we have also found that the more successful we become in our pursuits, the more varied peoples responses. 11 years ago my husband and I were living working dead end, menial jobs 50-60hrs per week just to make ends in a part of the country that traditionally has a very high cost of living. With no hope of getting ahead…[Read more]

Yes, IMO definitely worth buying in WA as the market is still surging ahead. We bought an IP a couple of months ago and currently looking for another. As for cashflow +ve, I think you are dreaming unless you’re buying commercial, residential at the higher end of the price scale or low cost rural properties. With regard this last point, a word…[Read more]

Looking for a residential IP for buy and hold, preferably something we can value add to cheaply (ie. clean, paint, new floor coverings, garden etc). Probably be away from Perth metro/Mandurah region as I think we can still get good capital gains with the benefit of higher rent yields elsewhere. Like to have something under contract before Xmas.