KatieSt wrote:

This Carly Crutchfield character is a popular one. Why is that?
<br /:)” title=”>:)” class=”bbcode_smiley” /> K

She has heart. Saw her on Russell Crow hosted 'Secret Millionaire' TV programme and was motivated to accept Jon Giaan's invitation to hear her speak today.  Good start for investors looking to fast-track their knowledge ….or get a foothold in the property industry without a deposit. She dropped out of school at 16 and paid a developer to teach her all he knows when he refused to take her employ her. At 29 she now has $250m of developments in train and does JV's with her students who find suitable development sites.

Congrats Jacqui. Sounds like you just got lucky…and you get to help someone else along the way. Take care not to over-capitalise in your reno – keep to cosmetic rather than structural renovation. eg if kitchen wall is load-bearing it would be better to cut a large opening instead of demolishing it. What did the agents estimate the rental return be post reno?

As Dan42 says, rents have continued to increase because there is a disconnect between supply and demand in many Aus cities. Each capital city moves in a different cycle and are affected to some extent by State Govt policy eg NSW & VIC FHB Boost Schemes have been an effective stimulus. The timing seems right for property purchases with Futures markets factoring in only one more 25 basis point rise in the cash rate over the next 12mths. Housing starts among the nation's top 100 builders rose 23% in FY2010 to the highest number since 2005. This will help affordability.

Nationally building approvals (and commencements) have been falling since 2005. This against a trend of rising fertility supported by farsighted government policy – we need to increase the tax base to support an ageing population. ABS figures confirm net immigration is increasing – and why wouldn't people want to migrate here as Australia has demonstrated a robust economy through both the Asian Financial Crisis AND the Global Financial Crisis. Speaking of which, 1500 projects across the country were pulled due to lack of construction funding in 2008/09. This is not rocket science – fewer new properties being delivered and national pop growth currently at 2.1%pa against an average rate of increase of 1.6%pa only 5yrs ago. What we need now more than ever is affordable housing close to infrastructure and employment hubs. Medium density housing is about efficient use of resources as much as it is about affordability. This is sensible and socially responsible investment.

Richard –  I'm talking about 97% LVR + 2% LMI capitalised = 99%.
Never heard of 4% LMI and you would know there are only two mortgage insurers left in Aust.

Regards

Correct Matt007. Engaging me as your Buyers Agent would involve a JV or 50/50 profit share agreement on successful 'acquisition' or signing of an option or on settlement/onsale of the option.
I worked exclusively for vendors for over 10 years, now working for buyers most of my time and creating WIN/WIN/WIN scenarios is very satisfying. Many traditional agents are resentful or at least suspicious, but understanding financing options is key.

Newport Beach, Sydney

I agree with Catalyst, NIFF
There is a strong argument for keeping finance and property transaction at arm's length unless you have independent confirmation  of the property's value. I recommend my clients paying for their own valuation. Remember the two tiered marketing of properties in the Gold coast during the late nineties. A major bank wasn't doing valuations on purchase properties as southern state investors had ample equity in secondary security properties offered.

Sammmee
REBA website explains an offer to buy property in WA is made using the Contract for Sale of Land by Offer and Acceptance form, commonly called the ‘O&A. The NSW equivalent document is Contract for Sale of Land and only becomes legally binding on both parties after contracts are exchanged and deposit paid. In Qld contracts become 'unconditional' rather than exchanging,  once finance approved.
Having a cheque made out to the Trust account of vendor's solicitors shows serious intent and adds strength to your negotiation.

Kerrie
You can access Pricefinder via Investar for small additional subscription cost. Pricefinder and RPData provide recent sales data by street. Invaluable for doing due diligence on properties that meet investors' criteria.

Cheers

Eilatan,
I agree with Greg that your accountant's advice makes little sense ( not paying down debt because it reduces the tax deduction) Your profit will be calculated by proceeds of asset sale less debts (and CGT).

CGT, as Terryw and Greg both point out,  is the net selling costs less the costs to acquire (nothing to do with loan).

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