Hi again Karen and Kate.Re tenant obligations to open for inspections, I realize this is the case, with appropriate notice.  However I have personally inspected places with dirty undies on the floor and old cat food out etc.  It can also be off-putting to have a sullen tenant sitting watching TV during an inspection, or an angry dog on a chain b…[Read more]

Oh one more thing James.If you buy a place of your own and pay it off, it won't be tax effective as a rental property.  G

Hi James.I think your original plan is pretty good, especially if you can live at home or with friends cheaply.  HoweverI also think you are on the right track looking at the positive cash flow concept, as it may allow you to buy properties with smaller deposits that are paying their own holding costs.  This means you can own more of them with l…[Read more]

Hi again Jiia.Not to worry.  I think on your income with your motivation, you can save the deposit quite quickly, and there are always good buys out there somewhere.  Don't forget you can sit your savings in an offset account to reduce the interest on your existing mortgage.Good Luck.G

Hi Sotiris.Obviously I don't know where your home is, or how committed you are to living in that particular location, etc.  My initial thought is, however, that you could find a great house in numerous locations for less than half what your home is worth.  The remaining money could be used to buy, say 2 x $350,000 properties or 3 x $250,000 p…[Read more]

Hi Jiia.I probably shouldn't say this in case one of my kids reads it, but is there a possibility a parent could loan you the deposit for another investment, on the basis that it is a really good buy, and that you have shown them that you can reimburse them within 12 months?Alternatively you could see if they are interested in doing a joint…[Read more]

Hi Tom.Just a thought, but could you sell the home, then rent as cheaply as possible for the time it takes to build on the block?  As your block would be debt free, and you have equity and cash flow in your other investments, I think you might be able to borrow against it despite your less favorable business figures?G

Hi Sasha,I think you are living proof that people in Australia can still afford property.  I also bought my first house at 21, as I had a young son and wanted to provide a solid foundation for him.  This involved living at home with parents and saving to pay for the land first while working and then studying.  I also had to rent it out for a pe…[Read more]

Hi Ouchiemama,We had the same thing ages ago and it is very annoying, especially when you look back and think of the other potential tenants that you could have chosen.  However, it happens to everyone eventually and I think the advice to be accommodating is good.  I am sure they will be happy to let you show other people through and you p…[Read more]

Hi Melanie.For your interest, I was talking about Flagstaff Hill, Adelaide, and land originally developed by Hooker Town Developments (I think!)  Some land had been released by Barrett & Barrett without the covenants.  As the original developer no longer exists the local landbroker had successfully applied to have the restrictions overturned.  Ho…[Read more]

Hi Maws.While the council may approve of subdivision in their area, your particular development sounds as though it was 'protected' with certain restrictions by the original developer.  Sometimes these may be overturned, at least that is what I've been told in my area where we have been investigating the same thing. If the original developer no…[Read more]

Hi trustieone.If it was me, I'd look at what else is for sale in the area to get an idea of the likely value. If you are buying from a relative they may be willing to sell it for close to council valuation (normally conservative) for a quick sale, and to avoid agents' fees.  From there you might consider that (in answer to your question) the…[Read more]

Hi jmboy.I'm sorry to hear about your situation, but you may not lose too much, as values have probably not dropped and may have even risen. It could be that the main road is something positive for another buyer.  Is it zoned for business, e.g. doctors' rooms?If you need the money to buy somewhere else, making a bit of a loss may make it worth…[Read more]

Hi Richard,Just to confirm (as we have done what you have suggested to Tumu) the interest on increased borrowings against the investment property used to pay down your own loan, are not a tax deduction?  E.g. your home is then freehold, but the debt shifted (secured against) the investment property is non-tax deductable, although the increased…[Read more]

Hi.  We are in Adelaide also.If it was me I would look at corner block (or two street frontage, hammerhead) properties that meet the requirements of the local council to cut a courtyard block from.  You can do this in either expensive or cheaper areas.  I notice people are even doing it in Elizabeth as the north has projected growth.  An exa…[Read more]

Hi Jess.Lots of good advice for you so far.  I would say we have managed several ourselves and found it to be ok, but my husband is very good with people and a multi-tradesperson able to do repairs. In particular it has been great to get rent straight away, and not have to forego the first two weeks of rent to the property manager.  However, you d…[Read more]

Hi.I was discussing this very thing with a friend yesterday, who got her property manager and real estate agent to advise her.Her problem is, apparently, that the current tenants don't have the property presented particularly well, with boxes of stuff in bedrooms, mismatching bits of furniture etc.  The agent said this would definately make it…[Read more]

Hi there.You might like to read Dolf de Roos, associate of Robert Kiyosaki.  His books could be in the local library. ( Real Estate Riches, and another titled something like 101 ways to improve your property.)  He apparently did a uni degree then followed it up with a very profitable real estate investment, so went into property and never &…[Read more]

Hi Sonja.In line with the aim being to target areas that have anticipated growth, not just numbers, look for Woolworths being built or enlarged.  Coles and Foodland too (or similar in your state).  They really do their research it appears.  From my experience they can even encourage growth as having a large supermarket draws other shops to the lo…[Read more]

Hi Winzer.This sounds like just the sort of property to get.  I have found similar situations myself in SA, where covenants had been put in place by the original developer to protect the 'new' development.  I did as a previous respondent suggested and looked for other properties that HAD been developed.  Then I knocked on the door of the de…[Read more]