I had one of my properties unrented for 5 weeks with other units also in the building unrented for a longer period so I thought of a different strategy. I hired furniture for the unit from a company who specialise in this when selling properties. They took new photos with the modern furniture and advertised an open house on the Saturday. I had 3 applications to choose from all at once! Yes it did cost me but at the same time it saved me in the long run. Good luck!

Hi Kevin

Budgeting is the most important part of getting started with investing. Our incomes coming in are consistent but usually our spending habits are not consistent especially when it comes to every day living. You need to establish a budgeting plan, put it in place and then monitor this for a period to see what is a “true” affordable amount for you to invest.

It is important to establish a good relationship with your advisers as these are the people you will surround yourself with and put trust in. Whilst it is great to meet them face to face, you can also get a feel for them over skype as to whether they would be the right fit for what you want to achieve. Also, just don’t jump in. Do your research on them and what they say as there are some great sales people out there who promote themselves as advisers.

Hi Isabel

The biggest risk in investing is time!

If you wanted to do something locally, you could engage the services of a project manager and your husband could help out on the carpentry side of things on his time off to help reduce your costs. The question is though, is your local area the right area to invest? Is this the best suburb to make you the most capital or cash flow you needed for your strategy? Also you need to make the decision prior whether you are going to buy and hold or buy and flip. Is this going to be a core investment or satellite investment?

Due diligence should be done before any properties are purchased as you need to know what your complete entry level costs are to realise your profit level upon completion. Investing is all about numbers and the numbers have to be right at the beginning and every stage through for any strategy to be successful.

Hi SnowLionz

You may want to read the link below regarding land tax thresholds and trusts in NSW. In Qld the land tax threshold is $350,000 for trusts or $599,000 for individuals. This is based on the value of the unencumbered land.

I personally create new trusts for purchases taking into account land tax thresholds. This is something I suggest you consider before making any purchasing decisions.

http://www.osr.nsw.gov.au/sites/default/files/file_manager/ofs_lt12.pdf

Due diligence should be done on every property you look at purchasing. If you are choosing to purchase land, sub-divide and sell then you are subject to capital gains tax. If there is already a sub-division with a high rental vacancy that should put flags up to say it may not be the best area to invest. You need to find an area with demand on rentals if this is your strategy and why it is important a full due diligence is necessary so you avoid major losses and pitfalls.

Hi Postup

Here is a link below. This is for Victorian properties but will give you a guide as to what you should be looking for. I hope this helps.

http://www.consumer.vic.gov.au/duediligencechecklist

You can start with something smaller that you can add value to. Rather than waiting for the market, you can add value help create your margins. You need to take these steps to start with and later move into the smaller developments. You don’t need huge amounts of capital but it is best to have a plan in place. Work out what you are after. Is it capital or cash flow you need? Once you know that answer, then you can work towards getting your portfolio together. If you do this in a smart way, you won’t need 20 rental properties, you have 5 or 6 which have added value which will generate the same income for you.

You use pallets, similar to fork lift pallets, jack it up to it is legal height, then put cement slab in, remove the pallets, put steel pillars in and then build underneath.

I think it is important to remember that property investment is a business which provides accommodation. In saying that, there is a profit and loss statement together with a balance sheet. If purchasing a PPR the decision is made with your heart and may not be in the best growth area. If purchasing an investment property it is a financial decision so you look at it strategically which should make your balance sheet look healthier in the future.

If you are looking at dual income there are some other great options available which don’t limit you to your potential buyers on re-sale.

1 option is to consider maybe splitter blocks. Buy a property on a larger block, split and then build another dwelling on the property or alternatively sell the block you have split off to reduce the mortgage on the original block.

Another option is to raise an existing property and build in underneath. You can still rent out upstairs while being renovated giving you an income while developing.

Both of these options give you dual income but I also believe it will leave you to the open market when thinking about selling or the other option of using the equity you have gained to invest again.

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Regards