Just a few points to add. Many International students are in Australia and have loans to cover their tuition and living skills from their home country. These loans are at market rates, and many students do have student poverty whilst in Australia. I think it’s a myth that International students are generally wealthy. Also, exchange rates have a…[Read more]

bennido,

I don’t include a deposit as an assessment for CF+ You could have a 50% deposit, but then you’d have lower expectations of yield. I just think of the purchase price, and the dollar amount rent. So if a place is 100k, then to me, it has to yield $200 a week to be CF+. That’s my lazy way of doing the 10.4 thing that Steve describes. Just…[Read more]

westan, here’s an article on timeshares- the pro’s and the cons. It’s american, but it was only written yesterday (which is their today) so it may have some interest for you:

http://www.miami.com/mld/miamiherald/living/travel/9212572.htm?1c

kay henry

Hector,

If the building is still being constructed, I am wondering if it’s an OTP apartment. And have you been informed by the developers or RE agent, that it would be suitable for student accommodation?

Just remember with OTP’s, that they need points of differentiation from other OTP’s to maintain their “value”.

If you are wondering what…[Read more]

Deanna,

If the IP is in good nick, as you’ve stated, with a good tenant who wants to sign a long-term lease… well, it sounds like you might be onto a good thing. If the town is only 6000, then that’s a really small town. If the regional that it’s 30km’s from, is a satellite centre, then it’s possible that the regional centre will provide…[Read more]

hehe- too funny Mel- quitting your job before you have one

Did you buy into that Paddo place, mel?

kay henry

Mrsimba,

They say that CF+ properties cost you nothing, so you can buy them in an unlimited way. If this is the case, then you needn’t worry about current finances, or other IP debt.

I do think you need to account for expenses- mortgage expenses, rates, insurances, repairs, possible vacancies, etc.

And not all people have 50 LVR’s, mrsimba.…[Read more]

I didn’t realise you were dishonest, Mel

Mel, how much is it gonna cost for me to walk on coals?

kay henry

jspri,

From what I recall reading on here, and seeing some people provide examples and running the numbers through, for example, Jaffasoft’s calculator, I’d say if people were making $60 a week clear, they’d be doing what seems average. So that would be about 14 CF+ houses @ $60 a week X 52 needed to get about the average income of $43k. It…[Read more]

Fnomna,

I think it’s easier to get the price you want in a rising market. Remember during the boom, people would just create a figure, and the property might go for many thousands more. Now, in a declining market, everything has changed. Remember that, on here, as sellers, we want to get the best the market will pay, and as buyers, you have…[Read more]

afghan,

In my family, we discuss politics and religion at the dinner table whenever we want. I think it’s healthy to be able to discuss politics, given that so much of what happens to individual’s lives is dictated by political policy.

wayne, if you check out who doesn’t vote in America, it’s often very disenfranchised people- people who have…[Read more]

gregjen,

It would probably be possible to run a test case through the Banking Ombudsman, or challenge the absence of the written evaluation through the Trad Practices Act, under the Provision of Goods and Services section. I dunno- just a suggestion.

If you have a relationship with your Bank, you can just ask them what the valuation said. Mine…[Read more]

afghan,

It’s a bit different getting a valuation on an existing property, say a PPOR, and an IP you are going to buy. My experience is that when you atre buying an IP, the valuer knows what it is being sold for, and the val comes in at that price. Ban valuations are often conservative though, so you could sell it for more than it was valued…[Read more]

Informal pre-approval takes like a half-hour from your Bank, and you can work out yourself whether you can afford the place. If it’s a 70% LVR, then do you have a 30% deposit (plus legals), either in equity or cash? If you have an existing portfolio, just add up your values (based upon most recent valuations, NOT most recent sales, unless you want…[Read more]

Sorry vic, I’m a worker, but my logic is that the Bank will believe that if you have employment, you’ll have double the income that you have now- rents plus wage. Banks have an issue with people being too “rent reliant”, and so want a backup for serviceability.

People like Brenda Irwin, a member of this forum, who have multiple properties, still…[Read more]

YC,

There are many towns you can still find cheap properties in. If you’ve been obsessed with the forum, you would probably have done lots of checks of the different forums and of the archives, where people “name names”. Just remember, Steve’s book is a few years old now, and the deals he was doing prior to the RE boom… well, you can add 50%…[Read more]

Alister,

Either that gratuitous self-promotoin took you two seconds to create … or you had it planned :o) It looks good anyway.

kay henry

Well done Alister and Team (and Congratulations Steve!)

I have to say I find this Forum highly navigable and user-friendly.

Ya gonna put “award-winner” on the homepage of the Forum, Alister?

kay henry

jspri,

It’s hard to know if the property would be a good investment without knowing more details. 5% net means it yields 5% after management (body corporate and possibly onsite property manager if applicable) costs are taken out, presumably. Gross, the property might yield 7%- but we really don’t have many details.

If you are looking for what…[Read more]

Matt,

Here is a really good article on the topic:

http://www.ohsrep.org.au/faqs/1023259073_16147.html

kay henry