K, you are probably thinking of the redevelopment of the Kent Brewery site (the biggest redevelopment site located within 10km of the CBD). This is going to be a major transformation of the southern extremity of the city (or Central Station area).

The area is going to undergo major changes with major investment earmarked by UTS, also located close to Sydney TAFE, Sydney Uni (so huge shortage of affordable student accommodation – read opportunity for the right $$). There is excellent rail, light rail, bus and road infrastructure in existence, mooted Metro station to be integrated into Central as well.

The existing Broadway Shopping Centre/Cinemas has undergone some refurbishment/tenancy remix (ie full blown supermarket is within walking distance). Also close to Chinatown and Darling Harbour.

You will need to make your own assessment of demographics, demand, supply, lead time and the eventual effect of a new retail, commercial and residential hub in close proximity to your identified investment.

PS Scamp – what do you think of areas like Darlington, Golden Grove, Westgate or Forest Lodge?

Depending upon your travel plans – try to avoid staying in the city. Consider North Sydney, North Ryde (new train line opens late Feb), Chatswood, Artarmon, closer to town – around Central Station (YHA), Strathfield, Parramatta.

You'll need to remember that the further out of the CBD that you stay, the more likely it is that you'll need a car.

There is a train station at the airport – cheaper than catching a cab into the city.

Parra is a good halfway point between the city & the blue mountains, there is also access to the city ferry.

It s part of your risk management strategy.
Diversification – decide what you are buying (portfolio analysis – how to balance your portfolio: shares, cash, direct property, indirect property, int'l shares, etc),
Macro analysis for property – decide where you are buying (country, state, town)
Review the extent of your investment – how much & where, does it match your strategy?
Exit strategy – plan how long it will take to divest each asset/asset class (country property takes longer to sell etc).

Generally acceptable walking distance to a station is 800 m (200m to a bus stop).

As for building distances – vibration and noise have been significantly reduced over the last 10 years with new track technologies ie no joins. Damage to houses is negligible.

For some, it is desireable to live near transport (and will put up with any noise), for others they prefer silence.

Why do you want to change the zoning? – mixed use is much less restrictive than residential usage. A spot rezoning will take 6-12 months minimum, longer if the council has no intention of changing the zoning or is currently reviewing the LEPs (many of Sydney's councils are doing this at present as a requirement of the State Govt). You may be required to engage a town planner either for advice or to prepare the application. So – just confirm with council & body corporate what uses you are able to put into the property before committing.

Re GST – if you are not registered for GST, fall below the threshold ($75k turnover) etc you may not be able to claim the gst and it will form part of your cost base. GST applies as it is a commercial property, it is not a going concern (it is currently vacant possession) – you may need to confirm with the ATO website the requirements for claiming the gst. If you are leasing the property to a residential user, you won't be able to pass on the gst. Likewise, unless you are renting the property out, you cannot take advantage of the depreciation allowances.

Which bank allows you to have 3 offset accounts against one property (or have I missed something, like having 3 different loans)?

Also be wary that it is often the date of the contract which is important, not the settlement date. That is, if you have sold at a profit, the contract was entered into today but doesn't settle/transfer for 3 years, you may still be liable for tax on profits for this financial year.

This is often an 'added extra' when buying however while you are still in the negotiation phase, reject any requiest to pay the vendor's land tax liability. In NSW it is shown on the contract, likewise whether gst is applicable. Reject this at all approaches. Paying someone else's land tax is not to your advantage, it only adds to your costs (even if you are an investor).

Personally I find that a ridiculous response from the agent. As the money sits in a trust account, it is your money and the agent is required to seek your advice as to how they should persue a defaulting tenant, not withold money just in case. Are they aware of an issue already?

Firstly, which part of Sydney? Is it for short term or long term accommodation? Small properties do have a greater turnover of tenant.

The fairtrading website lists a number of Oak companies – the one you mention is not listed. You may need to check their licence. http://www.propertyservicesregister.fairtrading.nsw.gov.au/olc/psr/Search.do

OAKS HOTELS & RESORTS (N.S.W.) NO.2 P/L        1349600          2009  
THE OAKS RESORT & HOTEL MANAGEMENT P/L   1085324
OAKS RESORT & HOTEL MANAGEMENT PTY LTD   998841 
OAKS HOTELS & RESORTS (NSW) NO 1 PTY LTD   1347640       2000
THE OAKS PROPERTY SALES PTY LTD                       1172474      2009
THE OAKS APARTMENT MANAGEMENT PTY LTD       1141453
OAKS HOTELS & RESORTS (N.S.W.) P/L