Howdy!

Thanks everyone for your comments – it’s inspiring to be in touch with so many dynamic investors, keep up the great work!! Made the executive decision to stay out of the home office and get out there for the rest of the weekend – learnt some more fun stuff including lots of very recent examples (last 6 weeks) of great +ve cash flow…[Read more]

Good advice Cremin – sounds like the agents keen to do the old one-two upsell shuffle. Don’t knock it on the head though, but be suspicious about why he’d want to sell you that one instead of taking sale commission on yours – if it’s a genuinely good option then there should be investors crawling all over it and keen to pay a premium.

Cheers,
Mel

Doogs is right and it’s a common problem. Were any of these investment properties previously your own home?

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Mel

Hi Alf,

I think you’re answering your own question and if your guts are churning then yep selling now near the top of the market sounds like a good option.

Not sure but is your total debt $244500+$8000+$80,000 = $332,500 over total assets $280,000+$220,000 = $500,000. Your current loan on the townhouse being interest only and just neutral does…[Read more]

Hi Catichau,

Sounds like you’ve certainly got the property selection side of things worked out well!! Agree with everyone above re broker help required & like Terry as a broker I don’t hand back commission either, old saying – pay peanuts get monkeys!! Instead I try to add value in other ways by teaming my clients up with excellent lawyers,…[Read more]

Hi,

I don’t think it’s that complicated – it just gives you a roughly 10% return which SHOULD be enough in most cases to be sufficiently cash flow positive to cover debt interest and other costs, thereby ensuring it’s an asset, not a liability!

Welcome aboard []

Happy investing,
Mel

Calron – you’ve increased your net worth to WHAT?!?? Wow. Congratulations.

Are you willing to share your core strategies – buy & hold, renovate, develop, etc.?

Cheers,
Mel

It’s a good point – maybe a short-term/higher-return development would be better given that LOC interest rates are high for long term lends, but v v cheap for short term.

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Mel

Yep – biggest eyesore around – Cathedral Place. Rents at about $320pw, costs about $200K to buy, best of british luck trying to resell though and the other fees and charges are terrible. To be honest the only ones I’ve found are serviced apartments which lenders hate, or dilapilated student accomodation ones. Keep looking, you’ll find them,…[Read more]

Oops just checked latest and yes they appear to all be around 6.1% now – same theory applies though.

Mel

Still good though. Most three-year rates are around 5.8% which to my way of thinking means that banks think the basic variable rates they’ll be competing against will be around 5.2 to 5.5% then – remember as per all good gambling establishments, the house tries to never lose ….

Others thoughts?

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Mel

Howdy,

Was just using Steve’s example of ways to reward tenants other than cash. Think vouchers to nurseries as he suggests are fantastic, but for Michael’s target maybe to Myers or the like may be more appreciated, and I think it should be linked to keeping the place in good order too, it’s a partnership afterall.

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Mel

Hi Kimmy,

Those caravan park options sound good re return but are they subject to management fees from the park owners? Do the no.’s still stack up?

Regarding remote buying and selling – good question, especially for your side of the world. What about a bit closer eg Karratha?

Cheers,
Mel

Hello Deb, rider of a Kelly!

I think JV’s sound great too – we are with a couple of new groups at the moment. I think you’re Bris based? So are we and looking in that area too. Would love to hear from you on melanie@homeloanconnexion.com.au. Hopefully a Brisbane meeting will materialise in the not too distant future too.

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Mel

DonRicci,

I’d be a little bit careful – know someone who was caught out taking a low declared rent and a little bit extra under the table, electronically, from the same person, doh!! Generally I believe you’re clear unless for example it’s a grown up child eg 20yo attending uni, whom you claim as dependent for some purposes eg private health…[Read more]

Doh! There goes the beachfront apartment.

Thanks Kelly for your info, always helps!

Michael if that’s your strategy have you thought about contacting Centrelink and St Vinnies and places like that where people in need tend to hang out. For starters they’ll tell you where these guys live ie where rents are fairly cheap to begin with, and you…[Read more]

Hmm, yes, my Sicilian boyfriend first probably!! (Actually he wouldn’t hurt a flea, unless they got into his violin case of course …)

But we digress. Come ‘on all you property guru’s – throw up options, dying to hear them!!

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Mel

Michael you cracked me up! []

Div43 – try a lady called Dymphna Boholt on 07 5479 4455 and she’ll daedal your tax & investment entities to your hearts content. She’s excellent and sensible enough to be based in beautiful Maroochydore.

Hope that helped. Note – no fish jokes, diver dude.

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Mel

Will you adopt me? [] [?]

Seriously, well done. For my two cents worth I am struggling with the high maintenance required on owning loads of low value properties for renting and wrapping. In your position I would look JV’s in some higher risk/higher return options like development of townhouses/units in larger regional areas or outlying metro…[Read more]

This is a piece of string question ….

Residential approx 3-6% in the inner city seems normal, compared to approx 10% on commercial for reasons above.

Any other offers?
Mel