Stu,

Good choice. Unlimited finance is a problem all active investors will face at some point.

Gus

Hi Guys,

I went to one of their seminars and also had a free consultation about 2 years ago. The ultimate aim from what I could assess was to get you to buy one of the properties that they either developed or represented the developer. The scenerio was basically buy a new or recently renovated unit / flat / apartment under a negative gearing…[Read more]

Yes is the short answer!

My understanding of the principle of Cross Collateralisation in laymans terms is that the bank formally connects all loans to all your property. In other words your PPOR is collateral for IP1 and IP1 is Collateral for IP2 etc. Simply, the main implication of this is: The bank can foreclose multiple IP’s in order to…[Read more]

Michael & Kaye,

I know many people have said this but I will add my message of appreciation – thanks for all your posts with the wealth of information, tips, insights, and experiences etc. It really is very helpful. Appreciate your willingness to pass on the education.

Thanks

Gus

Youngie,

Further to Scotts email – Stuart O’neill would look at these numbers differently if I understood him right. He would negotiate the lowest deposit possible and he would argue that the worst case is that you would lose your deposit only. So, if you could negotiate a 5% deposit ($7,500) or less then that’s all you’re risking (assuming…[Read more]

Hi everyone,

I’m with Regina on her idea of an advanced level of content. I guess I was looking for more ‘how to’ information and less ‘hype / motivation’. For example my key area of interest was on wraps and having read the material on the PI.com web site and other sites, the WG book sent out and other material I felt I had a handle on the…[Read more]

Hi everyone,

Time I think was our worst enemy. We did have a plan and it was remarkably similar to Steve’s. We interviewed every one and found our tenants, identified their needs, negotiated a rental premium if we could provide a service, we had access to funds via the bank and private invester based on our strategy…..etc but we couldn’t buy…[Read more]

Gordon,

There are enough really good books around to satisfy your thirst for knowledge on the real estate subject, however getting out there and buying your first property is the experience that will make your knowledge real. The more you buy and the various strategies you employ on your journey will further expand your expertise. As someone…[Read more]

Hi Smoke,

Welcome aboard! IO Loan = Interest Only Loan
This type of loan allows the borrower the option of paying interest only, and no principle. Therefore repayments are lower. These types of loans have this feature for 5 years, then you have to start paying off some of the principle. (there may of course be variations between loan…[Read more]

Hi Gerard,

If memory serves me correctly this strategy is advocated by Henry Kaye and the National Investment Institute. You may want to do a search on this site to see what many have said about this company. The ASIC website also has some useful cautions about this type of investing. It is traditionally the domain of the sophisticated, well…[Read more]

Hi All,

We recently had one of our properties in the eastern suburbs of Melbounre come up vacant (end of lease) and we had a tenant in it within a week of the old tenant leaving. Our agent did a good job of managing the transition, so I was grateful for that. I have seen other places with ‘for lease’ signs up for upto 4-6 weeks in some areas…[Read more]

Andrew,

Personally, I’d rent now and consider investment in PCF property. When renting, you save all the upfront costs of purchasing, the ongoing costs of ownership (eg rates, maintenance, insurance etc) and this will free you up to invest. Through wise investment you could potentially put your $30K to work and bring in a resonable second…[Read more]

Hi Nelutha,

Try Real Estate Riches by Dolf De Roos. This is part of the Robert Kiyosaki “Rich Dad’s” series. It’s available in most bookshops in the business section. It’s simple, straight forward and gives you a taste for what is possible while being practical as well.

Good luck

Gus

Hi Fernando,

Vacancy rates are not the only thing to look out for. Yield is essential. My understanding is that many appartments have been rented but at cut price rates in order to get ‘someone’ in there to help pay the mortgage. If you only get 2-4% rental yield then you have to find the other 2.5-4.5% yourself. I suspect that many investers…[Read more]

Hi Gerard,

I’ll save you the trouble of doing the searches…don’t bother signing up, it is overpriced and more hype than reality. This is my experience and many others I know agree. Buy some books and take the weekend to read them, you’ll save alot of money and get the same info.

Gus (burned in the past)

Hi,

I’ve just completed a renovation and the costs really depend on what you choose to do yourself and what you get someone else to do. In terms of your list I can offer the following guide:
Roof > $3,000 – $4,000 assuming you repoint, repaint etc. Best to get a professional group to do this.
Painting > $1,000 – $1,500 for paint, depending on…[Read more]

Hi Junior,

I have made some comments on this topic in a reply to a posted question. Post is titled “QLD investment opportunity” I think, it’s currently located on page 4, authored by Eu Savage. It has a perspective on one firm that deals in the retirement living sector of the market.

I must say I’m not an authority on the sector, but my…[Read more]

Hey Quasimodo,

Re: “Your brain will give you the answers….Ask a better question..”

Good to see that you are putting your “Tony Robbins” learnings to good use! Tony has some pretty cool insights that help everyday.

Appreciated your comments on some of the posts you’ve made too. I look forward to reading more.

Gus

I don’t have any specific research or feedback on SunnyCove per se, except to say the notion of investing in retirement living, on the coast, in those regions is right on the money in terms of being on a property investment strategy that seems most likely to produce good returns. Many demographic and geographic experts who invest in property…[Read more]

Great article Steve. I didn’t come across it until today. Very informative and helped me create a few additional distinctions about -ve geared property. The whole notion of paper / unrealised gains is a big issue. Having reviewed my investment and lifestyle goals over the last 6 months I have come to the conclusion that I need to focus on…[Read more]