Agreed @terryw I prefer coffee.

Yeah nice thanks for confirming @cjaysa – 6 months seems to fit a nice sweet spot, with banks being happy, new comparables arriving to support a better price maxing the potential equity pull, and even human limits, for some folk anyway where one has a rush of energy to research and buy, then reno, then u need a break for a few months. Then a…[Read more]

Vendor finance is always case by case, you just need to ask. If they are older, retiring, and motivated to sell you never know your luck, just pitch the income they will receive. If they want their capital out you are probably not going to get very far.

Gday @gabsy welcome. Lots to learn in the forums so keep up the good research work.

My short answer would be yes. The long answer is it depends. It is actually more about resale than rent, but it applies to both. If its cheap enough for you to be able to discount the rent you will still get a tenant, but it is likely to be a lower…[Read more]

It varies from bank to bank, I have had good response when allowing 6 months in between purchase and refinance 12 months even better. Any less than this it is tricky to convince a bank’s valuer of any real growth unless your reno is much more substantial. I have also had blanket policy of no refinance in less than 6 on occasion, despite the…[Read more]

Ah @benny I just sent you msg before reading this, so it was that thread! Sorry to be a pest but I thought it was worth asking the question. All the best with explorations on the options.

107/1-21 ANDERSON RD
(1 to 21 ANDERSON RD RD) *
WOREE L107 BUP100437:PAR CAIRNS
CASHFLOW KID PTY LTD AS TTE 30 m²
$20,000 26/08/2011

30sqm not something I would normally consider, basically a hotel room, a small one. But to be fair @terry the story was true. I get offered this kind of thing on 10% yields all the time usually just ignore, due…[Read more]

Hi @Ren16 – great set of questions. I have done the reno thing and the build thing. My thoughts below:
1 – You can leap frog a reno without selling. Correct you pay more stamp duty at the front but no cg tax if you just refinance the equity out. It is how I bought my first 3 in a smidge over a yr.
2 – Building is great – but you NEED to have…[Read more]

Hi @guypuls there are a range of ideas on this, and as always check with your own accountant, legal and financial experts, but it depends on several factors. If close to retirement and you want cashflow now, then less leverage, higher yield, put the cash into the property so you can live on rent. If not close to retirement and seeking max…[Read more]

Hi @markae welcome to the forum!

Great honesty – but don’t beat yourself up. We all can look back and see missed opportunities but the key is to make a decision to act now and try to get good info to support your choices moving forward. The forums are a great place for that. You are right there is a lot of info out there – the key is to…[Read more]

@Benny and @goosehead – normally what Benny is saying is correct that major improvements and renovations are all added to the cost base like stamp duty for future capital gains cals, so you get it back at sale, NOT as a tax deduction.

HOWEVER

For asbestos roof removal, there is a special rule I believe (please check this for yourself with your…[Read more]

Great post @planning. In our local one of the biggest hurdles is drainage. Council are not favourable to charged systems or pump outs so need the easement through neighbouring land or slope straight to street to make it work. And bushfire overlay…don’t get me started on bushfire.

This is why I never self manage. Do you have a clause in the lease preventing pets? Make sure you review the tenancy act in your state and follow legal avenues to the letter. If it ends up in tribunal you need a paper trail of letters sent etc. If mailing, keep copies and possibly use registered post, if emailing, keep copies of it all, keep it…[Read more]

agreed this will be preferable if holding for medium to longer term, but if the goal is a 1yr turnaround with reno for maximum resale I would say putting a tenant in takes the “gloss” off the renovation and makes it less appealing at sale time. If holding for longer for sure do the work sooner and improve rent and tax.

PS I have absolutely no affiliation with hotspace whatsoever and I receive no commissions for recommending them, I have just heard good things that is all.

@goosehead FYI I liked your question just because and @Benny I liked your promise to investigate – thanks. In my view (and other forums) the like button is more useful as it encourages positive feedback. The number of positive interactions gives a good guide to trust in the arena. If people dislike just because they have a differing opinion…[Read more]

This is probably one of the most important things when I think about it!

A little – I have done Battle Axe style subdivision before, and currently working with a few clients on that specific property type, so helping with due diligence to ensure we buy the right property so that can later do exactly what you have described. It is a great strategy and I encourage you to go for it, as long as you do your research and be…[Read more]

Great post @cjaysa!

I think in a strongly rising market you could win with this strategy, but be careful to only commit to blocks you can afford to settle and hold, because if something (like APRA, GFC etc) happens in the mean time you could be left holding an asset you can’t sell quickly. The profits will be small given costs of sale as mentioned above unless the…[Read more]