Hi, the price has factored in the land value of at least $90K for the block, may be more or less depending on the house value. Land values in SA went up sharply between 2005-2007, specially throughout 2006 & it increased sharply in the Eastern suburbs in 2007. How likely is it to continue like that?End of 2006, Seaford had 2 blocks at $75-80K.…[Read more]

Hi, it changed names because the reputation got so bad. Says a lot, doesn't it?The low 200s is probably based on replacement value. Look at it this way. It costs $160K all told to build a 3BR 2 Bath home. Add land value, transaction costs, GST etc etc. How much would a house cost? Anywhere in SA. I had been on this tune since March 2006 . It'd be…[Read more]

Hi, I share roughly the same experience with the same bank. The collateral your Dad has put up will be worth far more than the loan that he's been approved, if i know anything about the bank.I wouldn't waste any emotional energy trying to get MB to be accountable for the situation.You seem really confident about the numbers. The most important is…[Read more]

Hi, well done. When I 1st read your post, I thought you were joking. How did you get any vendor to give you those terms? I can't seem to get anyone to agree to settlement subject to sub-division approval.My 2 projects took 2 years to get off the ground, admittedly i slowed down the process when I saw the way the property market was moving.The…[Read more]

Hi, to add a few cents worth. In 1970[Ok, that's 37 years ago instead of 30], my sister's wage was $60 a fortnight (I think that's what she said). She used to spend 20 cents on a rock melon for lunch & every other fortnight she sent 'home' $60 which in those days, transformed into quite a usable amount in Malaysia.Then came the Gough Whitlam era &…[Read more]

Hi, you might want to investigate 5 year bonds, especially when interest rates go up. We've had a few rate rises so bonds should be around the 8-9% mark. I don't know the exact rate, because I'm geared up in property & have not investigated cash rates.It's just that in the last couple of weeks, the thought of bonds has randomly popped up & floated…[Read more]

Hi, join the club! You bought a 1st IP & you're nervous? I've bought & sold about 10 now & I still shake inside every time the words interest rate comes up.Your investment looks very solid. Want to swap with me?To give you more encouragement, I'll tell you this. If you're at all like most of us, you'll think, "Hey, I can save 8.7% if I pay off…[Read more]

Hi, remember to include admin costs of setting up a trust.Kum Yin

Hi, having nothing much to do except laugh for now, I decided to comment on your story. Sounds like a chapter in Reno Kings!I think someone might want to asssume your mortgage or equivalent to that. It sounds like there's some advantage to an investor so don't despair.I had one like that I just sold for land value. It was livable but only just. i…[Read more]

Hi all, my nerve ends are all on fire at the mention of Big 4 banks! They just knocked back my request for additional funds with the result that I'm now releasing one property with special conditions. Those following my thread will see it as the Blair Athol property with the sub-division.The heck of it all is that with the sale, i don't need the…[Read more]

Hi Lisa, well done! I had one in Reynella that was a no brainer from day 1! My sister was horrified that I bought in Reynella [it was sold to me by my manager]I regret like hell not buying the one in Martin Pl @ Christies but the bank will have a seizure.I bought one equally good, in Blair Athol, horror of horrors according to all my family but…[Read more]

Hi, I bought a house in Blair Athol & have approval pending to sub-divide it while retaining the existing house. The old house is a bit tired looking & requires an update.The house is on 500m2 originally just under 800m2. The new allotment alongside is 295m2.The project will suit a handyman or someone looking to expand a rental portfolio or a 1st…[Read more]

Hi, commercial property is valued by the yield. The going rate is around 6.5% for shops in less desirable locations & less for prime locations. You can do the sums yourself.Outgoings eg. rates, insurance etc is paid by the tenant. GST is not part of the net yield either.The yield used to be around 10% [about 2-3 years ago before commercial…[Read more]

Hi Milly, congrats. on leaving the Centrelink treadmill. Well done! I've a small experience with Centrelink when I 1st came to Australia when I applied for jobs & no one would help me unless I was registered with Centrelink. I had a fair bit of money but they still gave me $240 per fornight which made me feel terrible as I lined up where I felt I…[Read more]

Hi, the loan on the PPOR is the part I don't get. At 8% [easy to calculate], you'll be paying $35000 a year to live in that house that's worth only $390000. All non-deductible.Say you pay rent of $700 pw. At 6%, your house should be worth > $500000 to an investor.Can you find an investor willing to pay for you to live in the house like it was your…[Read more]

Hi, since you have finance background, the numbers may mean something to you.I was on $60K pa with $250000 tied up in PPOR which I leased out when I went to work overseas. I was full of grievance when I realised that my hard saved earnings would be taxed to the max so I figured that if I'd no income, I'd not have to pay tax. I went on to buy 3…[Read more]

OOps, that should read "I'm not giving advice"KY

Hi, I think what it means is that if there's no change of ownership & you refinance to buy a house to live in, the additional money you get $140000, is NOT TAX DEDUCTIBLE because the reason for the refinance is to purchase PPOR.On the other hand, if you 'sell' the IP to your husband, then the entire proceeds of the transfer of ownership becomes…[Read more]

Hi, Adelaide definitely!The suburbs mentioned by Bardon are what one'd call economically challenged but what do I know? I'm now living in one such area North of Pt Adelaide.Peter Koulizos has Exeter high on his hotspots. Largs North went up quietly but significantly in the last 3 years, after Semaphore. Beyond that, Osborne & Taperoo are very very…[Read more]

Hi, on $700000, you have some good choices. North Adelaide is very hip & yuppy. There're a mixture of old big houses with views [>$1M] & townhouses [2BR] small blocks, little yard space. My niece owns a townhouse with an artist's studio on Barton Tce opp the golf course. Value is $425000 plus or minus a bit more. Someone's comment? "No room to…[Read more]