Initially you would give a small blurb outlining the critical information, and if the party is interested you would then be required to hand over the detailed research.

An initial blurb might go something like:
Cash Flow Positive Property
10% rental yield on a 3 bedroom house in a mining town of 10,000 people. Capital growth has been steady over…[Read more]

There will be differences in tenancy and contract laws, tax rebates, and so on. Completely different system – I’d suggest buying some US real estate books that break it all down bit by bit.

They should be able to take into consideration your UK earnings – do you have a UK tax assessment form you can show?

They will want to make sure you can service the loan, so probably a good idea to start working before you approach them – or get loan approval while still in the UK on your current income.

If the IPs are cash flow positive, then…[Read more]

Put it in your PPOR to pay off your “bad” debt (non tax deductible), and you can leverage off the equity in your PPOR to get an IP (debt which is tax deductible).

Who is Peter Parsons? Dmichie, you seem overly respectful of any and all articles published (even on the net by an unknown) that support your negative outlook.

Even when they are as wish washy as this is.

The article starts by talking about the world wide trend in property – I presume in a poor attempt to make his further claims appear more…[Read more]

You can gain capital growth outside the major metropolitan areas – just do your research and ensure the area is a goer.

Consider it a long-term investment that will pay off with time, as the growth is not as consistent as major cities. You may get good CG immediately, but expect to wait ten years or so.

If you check out some government websites,…[Read more]

I’ve already answered the other thread but further to your questions:

1. Two 3 bedroom town houses don’t equal a 6 bedroom house.

Each townhouse requires for itself, seperated from the other: a kitchen, an eating area, a living area, a lug plus a 2nd car space, an outdoor area (usually has a balcony and a patio in addition to a courtyard or…[Read more]

You would find few constructions costing less per square metre than one built by a bulk house building company. They build to the minimum legal specifications, and don’t really expect the houses to last long in the scheme of things. They also have a cookie cutter approach whereby they use the same few designs over and over – cutting down on design…[Read more]

It will depend on where you are building it (costs are different in different states and metro vs rural) as well as the type of materials you use. Double brick is obviously more expensive than weatherboard.

Most insurance companies have calculators to work out rough replacement cost of a building – this may be of some help.…[Read more]

A potential problem is if the area is currently a residential outlook and you want the property as residential, but later down the track a commercial development goes up next door that impacts upon the streetscape. Nobody will want to live next to a McDonalds or busy shopping centre.

Can’t remember where I read it, but there was some research done on tenancies that found that regardless of whether you rent to wealthy high paid people at the top end of the market or poorer people at the bottom, the chances of rental default were the same.

Certainly, in building circles (my partner’s a builder) the clients you have to look out…[Read more]

Have you checked out the ato website? http://www.ato.gov.au

Should have all the tax info you want and more.

If you have access to a digital camera, I’d suggest you take photos of all the blemishes in dispute. If you send them a copy (email, on disk, whatever)then maybe you won’t have to go through with another inspection, they’ll see they’re wrong. And if not, at least you have photographic evidence if they do become a problem further down the line. And…[Read more]

You could find out who the PM would be using… but they might not be using someone who is reliable or inexpensive. Living in Sydney like yourself, I noticed that the next door rental had new guttering put in via the real estate agent’s tradepeople. The tradepeople didn’t put a downpipe in! The agent didn’t check the job and get them to fix it.…[Read more]

dmichie, I don’t particularly appreciate you quoting me out of context. Seems you like an argument more than the exchange of knowledge/ideas.

Originally posted by dmichie:
Luci, I’m glad that you have 100% faith that house prices never go down.

Never said a house price can’t go down. Do your research, buy well, and be aware of cycles while…[Read more]

Negative gearing was a hot trend about 5 years ago, but is now generally looked down on.

In theory, as I understand it:

PPOR is on P&I loan, and Mum wants to pay off debt as fast as possible because all costs are straight out of pocket (and with after tax dollars at that).

IP is on an interest only loan, which is tax deductible. Mum pays…[Read more]

Where do non-investors get their “general knowledge” on property? The media.

Generally they will just be regurgitating whatever doom and gloom that they’ve heard from a source that needs a new headline every day.

The media is in the business of selling entertainment, not strictly information. Sometimes it’s solid, well researched articles – and…[Read more]

Janetbianka

Only way to have your question really answered (yes or no) is to do your due diligence. If the numbers add up, then ‘yes’, if they don’t, then ‘no’.

E.g If you want +cf and find a cf+ property then the answer is probably yes.

If you want capital growth, then you will probably only get it in the near future if you add it yourself via…[Read more]

Dmichie,

The aging population problem (fewer young people, many baby boomers) is a National problem – not the least exclusive to Sydney. In fact, the problem is more exasperated outside of the major hubs as young people relocate to where there are jobs, while the increase in older people is simply because they have become older (they generally…[Read more]

Hi Simon,

If you’re not in Sydney (and therefore are in a rural university town?) it might be a good idea to purchase a slightly run down multi-room house near to uni and town that you can live in for a while (gaining the FHOG) as well as rent out the other rooms to friends/uni students.

I know a guy who did just that to pay off a 4 bedroom…[Read more]