Hi Boshie, Simon makes good recommendations for you. Plenty of things you can do with $200K, however you need to sit down and make a plan, yes a written plan, otherwise every time you hear a HOT tip you will be tempted to follow it and lose track, set your goals and your goals will dictate what strategy to follow, etc, etc. Tonight,  sit with…[Read more]

Hi Pitialv, the biggest con I see with buying land is that land by itself does not provide income, a house on a good block of land that you could develop further would have at least the rent coming in helping you with the repayments. It is also harder to borrow money just to buy a block of land.  In regards to CGT, etc, you haven’t shared es…[Read more]

Hi there, I really enjoyed Ron Forlee's  "Australian Residential Property Development" . It is a step by step guide for beginners, I read it a while ago and it gave me the inspiration I needed to tackle my first development project.  Easy to read too. I bought a few years ago however I saw it the other day while browsing the RE section at my l…[Read more]

Hi there, propertypower makes a good point, have a clause that allows you to pull out, something like, subject to my partners approval…  Also, if you get more than a couple offers accepted, it means you are offering too much money.   Happy investing

Hi Robyna, if you can afford it and fits your investment goals, there are many ways to do it, i.e No Docs as Simons suggests.   Happy Investing

This is what I would do, I would keep the lot, wont sell anything, get a line of credit against PPOR, enough to use for 20% deposit + costs for the new property, negotiate well, double check that the numbers stack up nicely and lock another property into my portfolio. Not sure how creative this is, however it works.  Happy Investing

Hi there, may I recommend you do a plan, sit down and visualize where do you want to be in say 1,3,5 and 10 years down the track. Put all this down in paper, remember property is just a vehicle to get you where you want to go, so knowing what you want is the main thing.  Your plan will tell you if that house on the Sunshine Coast is a good…[Read more]

L.A. Aussie makes a good point, tell your friend to do his due diligence, finding out what the property is worth is the main thing. I have this happened to me once. My IP was next to a motel, the owner was planning to extend his motel and offered to buy my property. I  know my areas well, so I knew how much my property was worth. On the other h…[Read more]

Hi There, how about you include the exit fees as part of your strategy, in other words it does not matter how much the lender is going to charge you as long as you have contemplated this in your numbers, it is just another cost of doing business, simple as that. I do it all the time. Exit fees are no different than say paying fees to the selling…[Read more]

Hi Stumunro, this is what I would do, if we have a bust, no worries, I will be buying more properties at wholesale. What happens with the ones that I own if there is a bust?, I know the market moves in cycles, I would sit tight, reduce debt, enjoy life with the family, and I wont  try to change the sun and the sunshine…the interest rates, the go…[Read more]

Hi Tugger, as a rule of thumb, to make money in renos, for every dollar you pay for renovating you should get three back (this is the 1:3 ratio thing), roughly, so in your case, think about the deck, is your $2,000 investment going to increase the value of the property by $6,000?In most cases this is a yes, just make sure it applies to your…[Read more]

Hi AO, yes, I recommend you do a pest and building inspection for a new home. Building is very obvious, you need to see if the builder cut some corners, etc. If the property is part of a strata scheme, then you do need to do some more checks too, your solicitor should know about this.  In regards to the pest report,  see what happens is that t…[Read more]

Hi Tugger, 20 m2 is very close to what I normally do. It costs me around $1,800 including materials and labor. It may cost you a little more maybe; I do this full time and have “built “economies of scale. However, $2k for a nice, elevated, entertainment deck area, always does the job, they key is to work out if this $2K investment is going to bri…[Read more]

One real life example,  Purchase price $722,000Repayment: $45,000 per year,  $3,750 per month (20%) deposit.Reno cost: couple of fridges, internet, a few more kitchen cabs, walls: $10,000Rates + Insurance:  $1,500 per year This was a 5 bedroom, turned into a 7 bedroom, with rooms renting @ 160p.w. Total rental income (1st year): $160 p.w. x 7 (ten…[Read more]

Hi there, costs may vary from area to area, are you thinking on DIY, buy the materials and have a handy man to do it for you at say $40 per hour, or call a small job builder/plasterer to do it for you? Because I am running a few renos at the same time, I use the handy man option, I have an account (15% discount) with the materials supplier, so I…[Read more]

Hi Karl and Rita, how big is the area?, On my last reno, I had an entertainment area that  was basically a 6 x 3 mts concrete slab in very bad shape. I got my handy man to do a “deck” on top and  for $385 in wood it went from an ordinary look to a beautiful entertainment area.  Obviously this wont work if it is a larger area, a drive way, etc, e…[Read more]

Hi Tugger, I do add an entertainment area to all my properties, and yes they do add some $$$ when selling/renting. What I have found is that you should keep it simple/small, etc. I don’t know your area, but in my area, the summer is really hot and winter is really cold, so an entertainment area is good and a must have, however the interior of t…[Read more]

Hi AO, the Sydney Morning Herald on Saturdays.Also, you could prepare a little flyer/letter and drop them on the houses/sites that you think could be developed, BEAT THE AGENTS, reap the rewards…  Happy Investing

Hi Tugger, you know the answer already. A well managed property portfolio needs cashflow to provide serviceability.Happy investing

Hi there have a look at my site, I have an example there on how I do it. You just have to factor the holding cost into the mix, you cannot have a tenant while you knock down walls, paint, etc, etc. Same with the “break”fees.  In regards to working full time and doing the reno work yourself, you got to ask yourself, are you a handy person?, woul…[Read more]