Some fantastic advice on here already and good to see so many investors starting young. In response to TK Line's fears – it's a fair observation but people in the market have been making similar observation on the mining boom for decades.  Property prices won't come crashing down out of the blue without some form of catalyst. In my view, major C…[Read more]

Hi Skyes,Good on you for being proactive. I bought my first property immediately after graduating from uni and before I even started my graduate job so it's definitely achievable. Here are my steps:1. Worked my bum off during uni to save up a reasonable deposit. Part time jobs, internships, scholarships etc. It's not easy, but it's possible.2.…[Read more]

One of my colleagues actually advised the federal government on NRAS. Generally speaking, it's a good initiative but although the developer / manager benefits from the tax scheme, a lot of these properties are actually not based in good capital growth areas. Fundamentally, NRAS is in the interest of society rather than for investors. You'll invest…[Read more]

alan1237 wrote:
Hi guys, I'm a newbie…I've a PPOR with $600k with loan around $450k and an IP with $520k with loan around $300k, currently renting at $320pw.I just signed the contract of an off-the-plan new PPOR and I'm going to sell my existing PPOR to settle the new one.I'm not sure if I would have to sell my IP or not…otherwise the monthl…[Read more]

Hi Maxi80The deposit is always the first step. Unfortunately, you need to go through the boring process of actually creating a budget to understand what you're savings situation is and if you can cut back on your spending. There's some free websites out there that helps you do this but a good one that I've seen can be found on the NAB…[Read more]

Hi Scotty,It's fairly daunting and not easy to get up to speed with the many strategies that's available.If you're starting out and you really want to just make money off property investment, I would typically go for a positive gearing strategy with the hope of making good capital gains. Now that's easier said than done – depending with where you…[Read more]

Hi Jake,Good on you for taking the first step in securing your future. I bought my first property when I was 21 with a lot less in savings, so you're already ahead of me when I first took the plunge! <moderator: delete advertising>My second suggestion, find yourself a mentor. Talk to your friends, family and others who you trust that have made…[Read more]

Hi bullet46,Welcome to the forum! Congratulations on your property flip – $100K in 12 months must feel good. Good question. What are your goals? Either strategy, you will most likely need a mortgage. What I can suggest to you is to understand the numbers back to front. Calculate what your mortgage repayments will be, what your cashflow will be…[Read more]

Hi BigTeddyIf you're after property data, a good alternative to RPData is the real estate instute of australia property data website (http://www.realestateview.com.au/propertydata/) or InvestSmart (http://www.investsmart.com.au/property-research/NSW/2038/Annandale.asp.)Furthermore, MID has an innovation patent awarded wizard which walks you…[Read more]

Hi Jeff,Good on you for being proactive and doing the research! Try MID – it's a free property investment analysis calculator at http://www.myinvestmentdecision.com.auIt's completely free. Takes a few minutes to sign up and easy to use. The website's been awarded an Innovation Patent. It's actually much easier / less prone to errors than excel. Sho…[Read more]

Hey Karen,

That update has gone through. There is now a question you can use to disable the loan features. Try out the helpers on the right hand side if you need help filling in items. The tool works best when you can give us all the inputs, but the helpers are there to assist you in estimating the value.

Have a nice day.

Jason

Hey Karen,

Thank you so much for your feedback. Definitely a problem there so cheers for pointing it out. I’ll get our dev team working on it asap.

Do you have any other curve balls you’d like to see the system do? If you have the time shoot me an email – jason at myinvestmentdecision.com.au. I’d been keen to hear it if you have the time.

Regards

Jason

Good to hear Nicole. Let me know if you need any assistance, or you can shoot a message through the feedback form’s that are located on the bottom of every page.

Understanding growth isn’t easy – 10 year growth rates are a great start/ Use the CG chart that you provided to find a suburb that has had decent 10 year growth, then look at the reason why it has had that growth. Don’t discount suburbs that don’t meet the 10% though,
Consider this: perhaps a suburb has had excellent growth in the past 9 years,…[Read more]

my 2 cents – you can negotiate with the banks. If not on interest rates, then at the very least on establishment fees etc. If you go with a mortgage broker, it costs you nothing out of your own pocket, but the banks need to pay the broker. There are a lot of brokers on the forums who i am sure can get you a better deal with the big 4 banks than…[Read more]

Just to reaffirm what the others have been saying –

If you are looking for capital gains, the more land, the better. Land appreciates in value. Property does not appreciate very much. You can always build a fresh property to unlock the value of the land, but you can’t create new land

If you are interested in comparing the long term financial…[Read more]

Hey Mick,

First of all – excellent effort looking into this strategy for investment. Alot of the 23 yo’s I know aren’t even that interested in property. We all know the earlier you do it the more years you’ll have.

I totally agree with Leo on this topic that while advisors are going to be essential, you really need to start learning about the…[Read more]

1. Considering this to be my fist-time venture in IP, what budget should I limit myself to (Supposing the banks are approving a loan of 300k).
Stick to low budget to begin with and invest for a positive cashflow rather than looking at places with a high capital gain. This way you can begin to pay for the expense of renting with the money from the…[Read more]

My thoughts are that the asking price is always more than you should pay. To take a page from Robert Kiyosaki – you should look at 100 properties, offer on 10 and get exactly 3 acceptances. Of the 3 you would then cancel 2 and accept one.

If you get more than 3 acceptances, you know you are offering too high. If you get less, you are likely…[Read more]

“their depreciation deduction relative to the purchase price has also increased.” that sounds wrong.

Depreciation is always calculated based on construction costs, so they would be depreciating on 175k less 2 years of depreciation. What they have said implies that depreciation for owner one was 175k over x amount of years and now for owner 2 it…[Read more]