in melbourne

in melbourne

so what about those clauses that the buyer needs to build a house after 3 years, and cannot sell the empty land without building a house on it.
my real estate agent and other investors who also bought land there together with me said we do not have to follow those clauses, cos the land will belong to us after settlement

ok i just went to the CGU site and it asked me a load of questions.

I bought my 1st investment property for $83,000 , the 3bd houses in that area is around $85000 – 90,000.
The rental is $120 per week. Soon to be raised to $130 per week.

So how much should i insure the building for?
And the loss of rent?

What do u guys usually do? are there any…[Read more]

why do they recommend that? any reasons and good points?

whatthe!

i am reading the “Purchaser’s Copy Of Offer” for this land now, and it says i need a Guarantor when i am signing, which will put the guarantor in liability to pay up anything owed to the seller, if the purchaser doesnt fulfil the payment for any reason.

And it also says i will need to build a house (house design plan to be submitted to…[Read more]

what are serviced apartments?

i once heard my friend said one developer built an apartment tower, but changed its function to be used as serviced apartment first, for tax reasons?…

hmmm

In some country towns you can get 7 or 9% per annum. WHeresle some other country towns with better facilities can have maybe 17 – 25% per annum (for final quarter of 2002). so sometimes you do can find Positive cash flow with capital gains as well, but these are a rare find.

Basically i dont really trust the statistics unless after i buy it and i…[Read more]

thanks AD,
i was trying to do my own Balance Sheet on my Assets and LIability and i got stuck!

dont the lenders have their own valuation people?
I thought most lenders charge you for the valuation fee as part of the application fee.

Hi spocky

Within 10km of the CBD you cant find a positive cashflow property. If you try the outer suburbs, you can get some areas (50-80km) with really high rents which will pay for itself and if u are lucky, just a little positive cashflow in $50-$100 a month.
TO really find a postivie one, you need to go to the countryside, about 100-200km away…[Read more]

i got another property which i am thinking of buying, its asking price is $69,000 for a run down 3bdrm brick house. The usual price for such a property which is in good condition is $85,000.

Basically it just needs a roof clean up and repaint, garden tidy up, and maybe some internal paint jobs.

How much should i allow for the…[Read more]

Hi,
hmm, isnt there another way to do this- the 1.6 rule
Eg if the house is 90,000 then 90(,000) x1.6 = 144 which means the rent should be at least $144 per week for it to qualify as Positive.

Michael and others,

What kind of loans should i get if i wanna buy-renovate-sell? Interest only or Line Of Credit?

Usually do u just sell the house immediately after u finish renovating, or do u maybe rent it out for 1 year to get some rent as well?

Thanks guyS!
u guys are great~![]

i bought the property for 83,000. I paid a $500 deposit when i made an offer. Now i am getting a loan of 74700 (90% of 83000).
So does that mean at settlement i wil pay the seller 8300 – deposit of 500 = $7800???
[]

hi, i am buying this one as Positive Cashflow, also for Capital Gains (cos the area i am buying has surprisingly high growth 27% last year!).

I am planning to buy a few more positive cash flow later this year, and then a Negative Gearing.

Pls tell me more info about the insurance pls

1)the financial broker was saying that with the variable at 6.11% and the 5 yr fixed at 6.47%, i will be “losing out” cos i will be paying 6.47% instead of 6.11%.

2)And his argument is that what really counts is the average % of the interest during the 5 years (meaning if i start with var 6.11% and then for later stages it is 6.9%, it still…[Read more]

hmmm, interesting,, but he still needs to come up with the deposit isnt it? thats ‘not his money’?

so what do you think i should do based on my figures? IO or P&I?

Basically i work on a job with quite low pay, and it takes a long time for me to save up a deposit. But i would like to buy more properties either WRAP, QUICK CASH (Recnovation) or POSITIVE CASHFLOW within 1 year.