good thing you asked the question here. :)

A BA who implemented Steve McKnight’s strategies….
I am curious to learn more about this, would it be okay for you to share?

beat me to it Tony by 3 minutes. :)

The body corp should look after the common areas and each tenants will be responsible to look after their own portion of the area.

as per Tony’s comment above and just to add to that.

1.) Work out your borrowing capacity at the moment with a broker. This will also add filters to your search in terms of location. No point researching in areas worth a million dollars if you can only afford $500k.
2.) Work out your end goal then work backwards. How are you going to achieve that end goal? i.e. 80k passive income in 10 years? you will need around $2m in asset base unencumbered giving you a 4% yield per year conservatively. possibly 4 houses worth 500k each then pay it down. how? that is what you need to figure out.
3.) talk to an accountant/lawyer to determine which buying structure is beneficial for you? own name? trust? etc.
4.) research. network with real estate agents, property managers during the research or simply employ a good buyer’s agent. they know their stuff and are a hell lot more specific and detailed in looking at properties than any other new investors.
5.) keep reading and asking questions.

Cheers,
Jerry

there were a few people looking at buying this a couple of weeks ago.. i will try to find them and re-direct them here.

• This reply was modified 8 years, 2 months ago by  Jerry.

As mentioned by my colleagues above. There are a lot of things to consider on the finance side alone in buying an investment property.

On a very basic explanation, lenders take in all your income (PAYG incomes, rental incomes, other acceptable income etc) less all your debts (mortgage, personal loan, car loan, credit card limits, hecs etc) to determine your take home income. From there, they will determine how much you can afford. Lenders then assess the take home income uniquely, some are more generous than others but most add in so much buffers to lessen their risk (adding in sensitized rates, assessing it at principal and interest repayment at 25 or 20 years etc)
Again that is just a very basic explanation of it, different lenders assess each deal differently. So best to speak to one of the brokers above and run through your situation with them.

Regards,
Jerry

HI Sam,

All the certifications, diploma and trainings are important but finding a good mentor is where you really need to put all your effort in. They are invaluable in the long term as they will share with you their industry knowledge and that is what will make you a good broker. Not all the textbook reading can equal the teachings of a good mentor. As brokers, we provide solutions for our clients. Having a mentor who is experienced in proper finance structure is of paramount importance IMHO.

Regards,
Jerry

Hey Pat,

Just keep in mind that if you sell a property within 12 months, you will be liable for a full capital gains tax. so make sure you take that into consideration when you calculate for your net profit.
If you are planning to build up a property portfolio, consider keeping the property and doing equity releases instead.
Buy a run down property – do cosmetic reno – order a new valuation and tap in to that increased value of that property. Just a basic outline but there will be so many things to take into consideration with this.

Cheers,
Jerry

Why not leverage off that property and do equity releases instead? This will make you utilize the gains from the last 5 years much better.