I'm with Marc here – if this was any sort of good deal then why on earth isn't it being marketed in Brisbane?My daughter is a nurse, and they certainly don't earn enough to pay $1100 in rent unless about 8 of them can share.For $420K you will be able to buy a decent house approx 12-15km from the city, with far better prospects of capital…[Read more]

Look at the worst case scenario.The motel/apartment operator goes bust.  There goes your income and your rental guarantee.Who can you rent to?  Many motel rooms are simply a bedroom and a bathroom, and would not be suitable for anyone other than overnight guests.  Some are more like studio apartments with cooking facilities etc, which are a li…[Read more]

Check out whether you are liable for council rates.There was some publicity in Brisbane some time ago when car parks first became available for sale and the Council was charging full Council rates (including water and sewerage) on EACH car park.  Clever cartoons showing carparks with loos and taps.Many years ago, not sure of the situation today,…[Read more]

Hi MaxOnly way to tie up a property is to put it under contract.  Maybe you can get a vendor to accept a longer finance clause.For this reason we always arrange finance as the first step in buying a property, even before starting to look.  Gives us precise information as to what we are prepared to pay, and the complete financial scenario for any p…[Read more]

Our PM remits payments twice monthly, once on the 15th and again at the end of the month.  It was one of the reasons we chose them.Marg

That is a question no-one can answer for sure.Everyone has an opinion, and each one is equally valid.  For my part, I don't think we have seen the end of the interest rate rises.   A lot will depend on events overseas completely out of our control.Marg

IMHO the main difference between now and the 1990/94 recession is the percentage people can borrow.  Not sure what the exact figures were in 1990, but when we built our first house in 1975 the bank would only lend 66% under savings bank rates, any more and higher interest rates were charged.  100% mortgages were unheard of, and even 80% was d…[Read more]

Hi DucI can understand that you are feeling overwhelmed.  Take a deep breath and sit down for a while!!You are in a wonderful position and really can't go too far wrong.  Even if you do absolutely nothing but maintain your present portfolio then you will have far more assets than you will ever need or want.But it is great that you want to move f…[Read more]

I work in a large state school, and would suggest that you look for schools to suit your daughters' personalities and individual styles.  For example, a quiet child may do better in a small school.  Some schools specialise in students who excel in music, sport or performing etc.  Any student can get a good OP in any school, an OP is earned by th…[Read more]

It will be really hard to change the lease.  The tenants will probably claim the dog is "visiting" or that they are "minding it for friends".We had an issue with one of our IPs when we found out that instead of the 5 people listed on the lease there were actually 9 people living there.  The tenants claimed they were "relatives" who were &q…[Read more]

Hi EmmaIf the vendors are living in the house, which I presume they are as they want to rent it back, then I would be very concerned about boarded up windows. To me, it shows a lack of attention to maintenance, which may be evident throughout the rest of the house.From looking at many properties over the years, the reason for a personal…[Read more]

Hi AlexIt really does not matter who you sell to, you want the person who can pay the highest price.  And you will only get the highest price by making your property attractive to the largest market possible.If the unit is tenanted, then the purchaser must honour the lease, so that will limit your market.  Obviously a good time to sell is near t…[Read more]

Hi MatYou will need 100% agreement from owners.Some points to consider:From the layout of the unit block, will everyone gain exclusive use of the same area?  If all areas are identical you have a better chance of agreement.  If some units are gaining more, then some sort of monetary compensation will probably be necessary to get the agreement of u…[Read more]

Hi RichardI think we all beat up on ourselves looking for the "perfect" investment, but like life in general it just doesn't happen.  If you have been reading and researching then it is hard to go too wrong so long as you intend to hold for at least 10 years.Time works its magic and your investment becomes more valuable with the passing years.  W…[Read more]

It's quite simple Swifteagle.To be absolutely correct, you must bring the rental back to per day.If the rental quoted is weekly, divide by 7 (to give a daily figure) multiply by 365 (to give yearly, let's forget leap years) then divide by 12 to bring it the monthly equivalent.  This evens out the bumps in the days of the months.The reverse…[Read more]

Can't help out either.  We have only 1 CC, use it for all bills etc then pay it off every month.  Used properly (i.e., don't pay interest) it is the best thing since sliced bread.Marg

Don't stress, Angelwings.We have owned rental properties on the Gold Coast and your rates will NOT be much higher – I think that rate rises are capped to the rate of inflation for owner occupiers.  But once the property is sold the rates reset at the going rate.  What you will get is an account for about $40 for registering a rental property.  Th…[Read more]

I must agree Jon.Interesting story in this morning's Courier Mail about housing affordability, featuring a young woman who had just bought her first home, a $320K unit at Wavell Heights, (an "in" suburb about 7-8km from the Brisbane city centre).  She said that she could have bought a cheaper property, but it would have been further out, and the…[Read more]

Many rental guarantees are financed by inflating the price of the property, i.e., you pay extra for the guarantee.

The guarantee is only as good as the company that guarantees it – often a $2 company that is only interested until all the houses/units/townhouses are sold. If they go broke then your guarantee is worthless.

The guarantee is often…[Read more]

Hi Cherry

There have been lots in the same position as you.

You may be a bit young to remember the scandal of the “two tier” marketing in south east Queensland in the early 1990s where interstate investors were sold properties $20K-$30K over their value, i.e. $120,000 townhouses were being sold for $145,000.

Much gnashing of teeth, endless…[Read more]