hi, my 2 cents worth.you're starting your portfolio late so no boom to drive your investments. Good is that no rose coloured spectacles to cloud your vision.your yield is quite realistic thus 'too low' thus bargain for a lower buying in price.you need to look for a yield of around 6% if you can.Property 2 : reno cost is going to kill any return…[Read more]

Hi Scamp, someone on this forum bought a house in Adelaide in late December for $273000 & it's renting at $345 per week.It's on 700+ m2 & can be developed in future though it's not quite worthwhile to do it right now.I was the one who brought up that property on this forum too. I looked at the house & was quite interested but I dithered a bit &…[Read more]

Hi, what's the end value after building?Cost of land = $75000 +Building = $160000Total cost = $235000Can you sell for $430000? or more? Any less means it's silly to build.The other more interesting/exciting idea is to build two. Does your zoning allow 1000m2 blocks?Then you have:Cost of land = $75000Cost of construction = $380000 [$20K more for…[Read more]

Hi, there's no evidence on the ground that Adelaide property is going to go down significantly. It has slowed & properties are taking longer to sell but they sell & not necessarily at a discount.I'm kicking myself now for not buying the house I liked at Alberton 2 weeks ago. It was a Brocks inhouse auction & I left without finding out what…[Read more]

Hi Ozboy, while Scamp has used some rather rude words to describe your 'plan', for once he's right.Noticed that our property market is already very cautious all of a sudden? While prices haven't significantly dropped where I'm at, the slowing was dramatic, as in a very very hot market in December 07 and then in January, auctions were…[Read more]

Hi, a few more words to consider. What are the reasons for the tenant to ask for periodic tenancy? They might be young people waiting to move elsewhere. In which case, you're better off looking for new tenants. You have 3 weeks. Surely, the vacant period wouldn't be too long? Again, depends on how long it takes to re-tenant.I once had a tenant…[Read more]

Hi, well said, Richard.What would we not give to have the wisdom of age & the aspirations & visions of youth?I'm settling on a small business next Friday so I have a licence to distribute food. The dumplings I make are going out faster than I intended. So the food licence will be good.What do we do when we 'retire'? My sister stitched & knitted &…[Read more]

Hi, I've been to one of their info evenings & they're marketing Newport Quays & home & land packages in Andrews Farm.I declined on the Newport Quays apts. but was quite interested in the home + land packages. Because I source for properties myself, I didn't buy any through them. In hindsight, the Andrews Farm properties would have done quite well…[Read more]

Hi, it's tough, isn't it?The target property has a high yield so to tell you not to do it is quite silly.On the other hand, your -ve gearing on the 2 IPs amount to $40000 p.a. or thereabouts.Serviceability doesn't seem to be an issue.So, the questions that need to be answered are: 1) what is the rental condition of your IPs? i.e. any likelihood of…[Read more]

Hi, James, look at Dazzling's dazzling analysis. Wonderful application of numbers.However, your 2003 purchase should have gone up 30% already. If you're worried sick, maybe sell one.The numbers you quote [around $5000] per property are VERY NORMAL. Even way back in 1998, I needed about $4ooo to support each house until the last one I bought, the…[Read more]

Hi, unfortunately you're in NSW. Can you look for a house that you'd like to purchase & then submit the details? Suppose your pension is $450 pw. Look for something in the $200-250000 range, preferably something in the lower range but in a location you like & then do up around $30000 worth.I'll be interested to look at your case & you may be…[Read more]

Hi, I vote we bar Scamp from this forum until he says he's walked around the suburbs for a month at least. Otherwise, garbage should remain where he is.I know these people. Vera & husband have son Justin aged 35 who should have his own home but procrastinated & had just recently moved back into parents' home. Daughter C is 24 & still living at…[Read more]

Hi, I remembered your post after the 1 month challenge. Well done on coming so far so quickly. Must have been a sacrifice.Like others, a lot of us have been there, done that. A friend of mine is currently under a mountain of credit card debt & to help out, I started supplying 2 items to a shop this week. Good luck to you in your continuing…[Read more]

Hi, I did that & sold immediately to an investor. You need to offer terms that make sense to an investor.Eg the rent is much higher cos it's pegged to the price. Say I want $335000. The usual rental is about $290-300 pw. I offered $350 pw paid monthly interbank. I look like a fool paying $350 to live in my own house & taking $280 from my tenants.…[Read more]

Hi, interesting & in fact, I'd be interested to know more. I like Horsham. Sounds like a one horse town but it's a place I really like. Know it only from stops driving between Adelaide & Melbourne.Anyone else knows anything?KY

Hi investor Eddie, I actually 'retired' @ 42 i.e. stopped working .I couldn't retire because I didn't plan. I just vaguely thought I'd like to retire @ 40. Maybe thought a knight on a white horse would appear!I discovered $250K wasn't quite enough to retire on. When I went back to work, I caught up with a vengeance.I didn't have to SAVE half a…[Read more]

Hi, depends what your buyer will take.KY

Hi, present opportunity is more valuable than future possibility.Unless your property is within 3km of CBD, it's highly unlikely to sub-divide in future. At present, duplex lot sizes are 250m2. Metro lot sizes can be under 200m2. so even the block 650m2 without easement is unlikely to sub-divide.$15K is a significant saving. More especially if one…[Read more]

Hi, X collaterisation works when you have no other choice. Until you need to split, it'd be cheaper to just roll with it. Look at the end result. If you can get a spread of 2%, it's worth it to refinance. Splits usually requires restructuring, which usually involves more fees.I'd wait till I get an advantage from restructuring.I'd always cross…[Read more]

Hi, your purchase isn't all that bad. It looks pretty normal to me. How much rent would you have to fork out if you don't live with your parents? Doesn't that answer your question already?The 'not work another day' bit, that's what you need to concentrate on. Suppose your living costs = $30000 p.a., you'd need to have a net worth of $600000 not…[Read more]