Hi, I'm having one put up tomorrow, not having much luck with the newspaper ads.My last house attracted 30+ people on the 1st day with no signboard. 3 weeks later, it sold at auction. Everybody knew it was for sale even though there was no signboard. The house across the road only had a quite small sign just www. something & the telephone number.…[Read more]

Hi, I attended Martin's workshop last year. Email me if you live in Adelaide.Kum Yin

Hi, you seem to be doing the reverse of what most people do i.e. draw down excess equity in PPOR to fund IPs which are tax deductible.Your target PPOR is high priced compared to IPs so you'd need a sizable income to pay for your cost of living.Can you live in House 2 and use the equity to buy target PPOR for rental for 5 years or so & then when…[Read more]

Hi, I feel for you & pray that your health recovers quickly.I'm about to refinance my properties for cashflow & am thinking of capitalising the interest on a million dollar loan for 5 years. Needless to say, the worry is making me sick. The point of difference I note is that your PPOR forms the bulk of your assets. You might want to think about…[Read more]

Hi, can any of you help me out with lease options? I own 4 new houses, have moved into 1 of them out of desperation & can sell 3 of them. The problem is the GST & tax on profit take out half the total profit.If I hold them for rental for 5 years, the -ve gearing wipes out a lot of the gain, though we don't know how much growth we can get in 5…[Read more]

Hi, interesting range of fees.I summarise my income/expenses & clip together all statements from managers. One year, the manager left midway through & I had to sieve through the bank statements as well. I highlighted what I thought should be included in the income/expense. I also make notes on the properties in question. At various times, I had 3…[Read more]

Hi again, sorry, MISREAD! $115000 loan is probably 45% LVR on improved property valuation. I misread it as $215000 loan.You have about $85000 excess equity. Congratulations.FYI, my currently -ve gearing property was undervalued when I bought, I asked for revaluation ten months later, the bank put it at $250000. Currently, the price of similar…[Read more]

Hi, I've had an email reply from Michael when I asked about property devt. Unfortunately for me, he operates in Melbourne & can't help me but I was really impressed by him. I have looked at his web site & followed his views on this forum.I like his authencity. I also like Steve Mcknight's down to earth approaches. They have the validity of being…[Read more]

Hi, what kind of yield are you after? I may be able to offer long settlement in Adelaide Kum Yin

Hi, the position as you describe is a bit wobbly. For comparison, most people [me included] have IPs like this.Purchase price = $223000Loan = $174000Rent = $220 pwNote that this is still -ve geared. We then proceed to save like a mad dog to pay off the home loan on PPOR that was used to fund this IP. Then the mortgage payments lessen & we have…[Read more]

Hi, like everyone else, I was concerned about the impact & meaning of such news. Here in SA, we have 'No deposit', 'No interest loans', & I've out some details.Such schemes are offered by some councils to 'help' people build new homes.THE BASE PRICE IS $265000.The median price in Adelaide recently flew up to $360000 [according to API] & $340000+…[Read more]

Hi, don't forget the holding costs. If you're 'struggling' now, selling to buy again triples your cost base. Selling costs, assuming you get $520K, will be in the $10000 category. Then buying costs of 2 properties, that's $20000 more.Your $520000 house will struggle to make $500 pw rental. Every house I've ever owned costs a minimum of $2000 a…[Read more]

Hi, interesting. I bought my sub-division in June 2005 and the demolition was in Dec 2006 so round about the same time as yours. building began with the slab in Jan and the frames went up in March. They were supposed to finish in May but handover was not until Sept!The paperwork part dragged ON and ON and ONWe're now finishing the paving, 18…[Read more]

Hi, some areas of concern here. Before you tumble headlong into alligator waters, CHECK CAREFULLY.1) You should not have to borrow to pay off personal debt. This is not tax deductible. The bank will also NOT lend you for that purpose.2) Your Adelaide PPOR now when it becomes a rental should be used to finance your next property which should have a…[Read more]

Thanks, I might drive to Normanville/Carrickalinga area to check out how it's changed from when I was there 6 years ago.Have a good week,kum Yin

Hi, I thought that it'd be a good idea to buy broken down properties & ended up living in a house that could not be used for rental. Rebuilding costs a lot, I could still do it but mortgage costs added to the total. In the end, I decided to let someone else make the profit because the timing was not right for me.I sold for $62000 more than I paid.…[Read more]

Hi Mikey, I'm quite interested in Cape Jervis land blocks. Are you serious that blocks can be had for $60000? I might want a holiday home. Holy Moly, I must be coming up in the world to be talking holiday home!Can you let me know the paper or agent marketing land blocks?I have seen the Hindmarsh Island blocks & am not really interested. Port…[Read more]

Hi, it could be that both parties are right. Some areas might drop in price but the 'drop' is a normal adjustment to sharp increases. Many areas in Adelaide are not likely to drop because as Mikey has said, unless building costs go down, to replace the houses is going to cost just as much. Put on top of that, transaction & holding costs, how can…[Read more]

Hi, I live in Adelaide & just built 4 houses & start building another one in April, bringing my total properties to 7shops, 5 houses, 5 student accommodation apartments and 1 rubber estate.Believe me, I know the fear of a BIG debt.I'd cut off an arm to be in your position, to have your youth & enthusiasm, your salaries etc. You are in a good…[Read more]

Hi, lots of angst here! Foundation is an old hand & I'd take his comments very seriously.Speaking for myself, why waste all the emotional energy on time consuming legislation?My manager didn't do very much & I stuck with him for 24 months. Things got nasty, we both agreed to part company, I appointed a new manager, 1st priority was to call in the…[Read more]