In my experience rents have generally been decreasing since the late 90’s. Is that finally starting to change? If so, why?

Kim

Excuse my ignorance, but what does LOC stand for?

Message to Steve – how about creating a glossary of terms section somewhere on the web site please.

Gotta love all these TLAs…

Kim

When I lived in the UK in the bust in the early 90s there was talk of a standard index that reflected average take home earnings and average home prices i.e. average home prices / average take home earnings. The notion was that in previous booms there had always been a bust when this hit around 4.0 and the bust in the market then happened just…[Read more]

You can get those credit limits on a normal card. Getting a platinum card is about what other benefits you get for the extra fee it costs. Personally I’ve never taken them up because the return on the benefits that I would use just hasn’t been worth it. Its just a basic attempt to get you to pay a higher fee for extra benefits that you’ll probably…[Read more]

Couple of things to consider:

1. Do you have a tenant now? If not what is the vacancy rate in the area & what are you basing you return on. If the property is vacant for a while can you manage the mortgage on your own? If you don’t quite get the rental return you want can you manage a negative cashflow?

2. Have you factored in costs into your…[Read more]

Hi Helpme,

I sort of agree with a lot of the posts but playing devil’s advocate, why not tough out the current situation for a while. You have your dream home. If you wait a couple of years and reduce your mortgage perhaps you will be able to afford an investment property later. There are significant costs associated with selling and…[Read more]

Funnily enough I just spoke to my accountant about this yesterday. It also targets computer contract workers which I am about to become.

The ATO uses 4 tests:
1. Results test – are you paid for a result e.g. doing a discreet task and not just turning up to work every day for 6 months

2. Employment test – do you have an employee

3. Unrelated…[Read more]

Well things have changed since I left in 1998 – house prices have doubled and even tripled in some places. But there were some hotspots. Brighton for instance was averaging 12% ROI for rental properties. Dunno if it was cashflow +ve. Cambridge returns were high too. Both are university towns with transient rental populations. Now Cambridge of…[Read more]

One other thing about RE in the states. Commissions there are huge – 6%+. Different ballgame entirely.

Wow Richard,

You should write a book. 0 to 131 properties in … years []

How long did it take you by the way? Pretty impressive. Good to know someone besides Steve can do it!

Kim

Go around the agent and present the offer to the vendor directly

Its my understanding that no lender can say no to a mortgage based on the potential mortgagee’s age. They have to find another reason. Thank our political correct times.

i.e. if an 80 year old came in wanting a 30 year mortgage they cannot reject the mortgage based on age.

I’m 47 and have 2 mortgages which will both mature in my 70’s. Bank was…[Read more]

Isn’t anyone concerned about currency fluctuations affecting potential income and capital gain? Always a risk when investing overseas especially given the massive changes in value of the AUD in the last 2 years.

Any thoughts?

Just one quick comment.

I’ve never needed or used a solicitor. Just hire a settlement agency – its their bread and butter and they know what to do. Solicitors cost too much and they probably get a junior to do it anyway.

Well I can’t answer for QLD but in WA, a tenant on a month by month type lease must be given 60 days notice to leave. This also applies if you want them out at the end of say a 12 month lease. You have to remember to give them notice after 10 months.

Now they as tenants are only required to give me 21 days notice.

Pretty sure the law is state by…[Read more]

Felicity

All I can say is, to hell with the agent. Bypass them and present your offer to the vendor.

Kim

Elysium

Personally I usually ask the question but never really believe the answer anyway. To me its the first step in the negotiation.

I remember reading a US real estate motivational type book a few years ago. Can’t remember who but it may have been the “no money down” dude. He goes to agents in an area and asks them to let him know when he has…[Read more]

Here’s my 2c…
You don’t mention your income but presumably the $200 shortfall isn’t too onerous. Your 3 pieces of land aren’t earning you anything but it doesn’t look like they are costing you much either. Beware selling them. They aren’t making any more land and land prices are what has fueled a lot of the property boom.

Presumably you have…[Read more]

Thanks Mel. I just read it. Seems pretty sound unless interest rates go crazy (remember 17% in 1989?). I think that in the current market conditions I’d be tempted to fix all the loans. The other thing to consider is that fixed interest loans usually can’t be had for more than 5 years and who knows what the interest rates will be then! Can always…[Read more]