Has he tried negotiating with the vendor to reduce the rent or have it accredited to the sale?

Without knowing the details of the current property contract it’s a bit hard to comment – but it sounds to me that the vendor is in breach if the settlement is delayed because of his building works – which should leave your friend with the upper…[Read more]

When you think you have a good idea of how much to rent your property out for, drop into some rental property open times and compare the property/price to your own.

Two identical houses side by side could rent out for very different figures if one is a bit run down while the other is freshly painted etc. So it’s not enough to just say “what does…[Read more]

Over the next 7-10 years you will automatically have another $800k of ‘equity’ added to your house value to draw down on.

This is most likly true if you do your research and invest in the right areas/type of property. I wouldn’t say automatically though, as there are always exceptions.

Peace-Sunshine, you could consider “What is the…[Read more]

In addition to all the good advice above – ask them what their vacancy rate is like on the properties they manage, and how long it usually takes them to let a property like yours out.

If they can’t/won’t be specific with this, then I don’t know that I would trust them. Also make sure they see you write this down, and guage personal body language…[Read more]

I want to buy house to save DEAD MONEY going in form of rent.

Rental prices are actually much more affordable than the cost of owning your own home.

At the moment you pay a total of $9,600 per annum to rent your residence.

If you get a $350,000 home loan it will cost you aprox $24,500 per annum in interest alone (before you even begin paying…[Read more]

I wouldn’t suggest you invest in property until you know the answers to some of these questions back to front.

You don’t need to buy a Due Diligence Pack – due diligence is the process of researching an area/investment and while someone can flog you a list of variables to consider, they will not be specific to your situation.

I’m not familiar…[Read more]

Originally posted by tiffanyd:
We are considering buying a residential property with the aim of selling it on quickly and eventually building a selection of properties, some of which we would rent.

Why onsell quickly? There are many expenses buying and selling property – it is generally considered a mid to long term investment – so quick selling…[Read more]

Hi Terry,

Research is the key. A quick search on the internet, reading half a book… expecting success after so little effort is like expecting to win the lottery just because you bought a ticket.

Have a look through previous posts on this website (you can do a search) and you’ll find countless replies to this question.

Agreed. Some mining towns are more stable than others – it depends on the ongoing life span of the mines near the town. Some still have 20 years of resources, others may die out in a couple.

Take a look at the mining companies involved, and how their investments are going around the world. Check for their stability and commitment to the…[Read more]

Other ways to achieve cash flow positive properties:

*larger deposit.
* value-add for the tennant with white goods, furniture, cable tv etc to gain a premium rental return.
* renovate/rejuvenate property for better rental return (and capital gains).
* properly research potential tenants before letting to them (to ensure they won’t be ‘bad’…[Read more]

Life certainly can be expensive, but attitide is always the key to saving. Even as a student living away from home on under $7k per year I maintained a strict savings regime. This is obviously harder when it’s not just you, but also a partner and kids, but it can still be done (my parents raised 6 kids on one income! Also living in Sydney).

It…[Read more]

Check with the local council about the zoning for acceptable land use – as it is not a state wide regulation.

Sydney is a big place – best use will depend on the needs of the area. 405sqm is a hell of a lot bigger than where I live in the innerwest (try 65 sqm!!!), but would be considered small in more suburban areas. If the area is zoned for…[Read more]

Personally I doubt it will go so high in such a short space of time – and don’t forget you can negotiate your rate with your lender. My interest rate is less than 7%.

If you hold off because you’re afraid it might go as high as 9% then you’ll probably never invest. Interest rates are always capable of going up or down, and even if it went down…[Read more]

Write up a list of pros and cons. Things you should consider:
Cost of selling (advertising costs, agent costs, auctioneer costs, any taxes, charges, capital gains etc).
How much the property is likely to sell for in the current market. Is this a gain or a loss from when you bought?
Can you increase your rental yield on the current property?…[Read more]

I thought supporting the retail business with an online business would make it profitable.

So you started by wanting to set up a cafe, and decided to incorporate internet?

In my experience, most people using “internet cafes” are there primarily for the computer access – they don’t order much food or drink (if any), as are using their time on the…[Read more]

Maybe you should get legal advice… oh

Another problem with signing it over to the Vendor is if at the last minute the sale for one reason or another doesn’t go through. The money is now in the Vendor’s name, as requested by you.

You are right in thinking that it would be difficult to find a place for anything less than 400k in this area. The medium house price in inner west sydney is about $680k. You can always get a unit or ‘renovators delight’ for cheaper, but it is a high entry point and unlikely to be cash flow positive.

(I have noticed a few places lately on the…[Read more]

First step is to educate your self as much as possible – read up on various investing strategies and decide which is the most relevant to you.

Depending on where you live, you may find that financially it is best to move out of your PPOR and turn it into an IP. Any costs associated with the property will minimise your tax, while tenants also pay…[Read more]

On the one hand you’re in a weak position – needing to move asap. The question is, is he in a similar position – needing to rent the property out till settlement?

If he has mortgage repayments then he’s in just as weak a position as you are over the rental.

Was he doing you a good deal initially with the rental rate? Or is he now overcharging?…[Read more]

Dealing with banks, whether as a broker (as yourself) or as an individual (such as myself), is often stress-filled. The problem? We need banks, but the systems they have in place are often inconvenient and disrespectful to customers. I wouldn’t want to be a mortgage broker for all the world.

My own tale of horror? Developed a good working…[Read more]