Spark,

u mean we need to become a member to get the insurance from them? Does CGU require membership?

And how much do we need to pay per year for the membership so we can save $59?

in melbourne

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 rules which you usually follow?

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 the seller for approval before building it) within 3 years after settlement (for living in, or rent, or sale), and not sell the land or transfer name WITHOUT building the house beforehand.

Man what kind of selling rules are these?
My friends who is a real estate agent and some other investors says these are all bullshit clauses for that seller company to “make a show” for the government, and also to avoid any bigshot investor buying all the lands and then sell it off at higher price. My investors friends says after settlement the land is ours, the seller company is happy they got the $, and it wil be our right to sell it off, since the people who bought in the previous earlier launch, some have built the house, and some are selling empty land privately.

Any thoughts about these?

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 can successfully sell it for x amount of dollars more the next year.

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 purchase/conveyancing cost/stamp duty etc? is $3000 enough?

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?

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???
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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 balance out the 5 year Fixed rate of 6.47%). Plus i cannot access the equuity in a fixed rate IO loan.

3)BY the way does anyone know any lender who can lket me access the equity in a Fixed rate Interest Only Loan without a heavy fee? Pls recommend. At the moment i am leaning towards “Homeside”.