Hi Mini & Richmond,

In response yes Richmond is right about what I meant re over-exposure and as a beginner it’s heartening to see that he is being offered solid deals direct from real estate agents he’s met & developed a relationship with, further showing the huge advantages of making the effort to get face-to-face AND follow through as a…[Read more]

Thank you Steve,

I bought your book online Sunday, got it Tuesday and realised when I finished it Friday that I had learnt more than a $5,000 3-day course had taught me three weeks ago.

As a dreamer & budding property investor your simple but brilliant commonsense approach is a big breath of fresh air and I think like most people who’ve just…[Read more]

Hi folks,

The key reason for spreading your loans around is the ‘safety margin’ lenders apply to their own securities.

Eg Loan 1 with ANZ at 6%, repayments $1000 per month. If you want to take Loan 2 with ANZ as well at 6% for another $1,000 per month, putting down 20% deposit from equity in property one (but not cross-collaterising!), they…[Read more]

Agree with rolls and Michael & Kaye,

If you cannot get a better OVERALL deal eg interest savings being higher than break costs and speed & quality of service to actually get you the extra funds then DON’T move to another lender, especially not just to line a brokers pockets – and I’m a broker!

From the broker perspective, generally after 3-4…[Read more]

Hi Richmond,

I agree – as a new property investor it is too easy to fall under the spell of ‘too good to be true’ deals on the internet, and I saw those Rocky ones and tried to drag my partner up there from Brisbane yesterday …. !!

I think it was Michael & Kaye who said the internet was like a colt .45 – it makes everyone equal, and provides a…[Read more]

Hi,

Roy another good source of free demographics data is http://www.realestate.com.au – look under home price guide in the bottom left then use postcode snapshot on the rhs. Doesn’t have rents but has portion lending & loan repayment stats.

Count Redland 3 v Redcliffe 0 ……

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Mel

Hi,

Providing you don’t have to touch it to do repairs/mods etc it’s okay so have it THOROUGHLY checked out by a builder who is experienced with asbestos roofing to ensure it’s intact prior to purchase. It will be a long term liability to consider as well, but a pretty common one for older places.

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Mel

Which area gets higher rents? Know both from passerby perpective and from ‘feel’ only would go Redland for both CG and rent return.
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Mel

Are you the leasor or leasee & is this to borrow against or earn income from? I think development marketers and leasors do, lenders don’t for loan purposes. Could be wrong.

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Mel

Hi curtly,

Basic variable principal & interest is probably the most common loan I come across for non-prop investors. Most property investors want portion fixed or variable with an off-set account to park spare cash that reduces repayments, plus a portion LOC which can be redrawn when needed eg to buy another IP.

Re sale price – location,…[Read more]

Hi,

Have you seen Jan Somers’ PIA (Property Investor Analyst – I think) software ads in the API mag? It’s pretty well respected and you can get a free view demo of it from http://www.businessmall.com.au, although I found that more a glimpse than a proper viewing and haven’t bought it yet.

Cheers,
Mel

[] – Hello Newbie’s! Warning – this site is addictive.

Re dressing up for banks – with a clean or only slightly tarnished credit record you’ll get good loans, low doc or otherwise. The low/no doc market is fiercely competitive with lots of lenders offering reducing rates so that after 2 years you are on the same as everyone else anyway – eg ING,…[Read more]

Hi Darth,

I looked at a one-bedroom serviced apartment in Brisbane CBD with avg 15% return about a month ago but the problem was finance, not feasibility. The apartment was under 45 m2 living area (ie excluding balcony & carport) and hence no one would touch it. The other major hassle is that if you do find one big enough the banks are still v…[Read more]

Hi Trisha,

It’s a big part of investing that dreamers like me tend to want to brush over so I’m happy to plug Steve’s new book – got it in the mail this week and am basically stunned at the huge amount of methodology he shares on just this topic … good luck and hope you can retire in 3 years, not 10 … !!

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Happy Investing,
Mel

It’s 25 deg C in Brisbane [][], and I’m about to take my mutts for a walk in the park with all the ex-Tasmanians wearing, you guessed it, shorts and T, then come home and prep for novice property investing group meet at our house tonight with Tassie investors I mentioned, might have more tomorrow on their deals … !!

Re margins, totally agree…[Read more]

Thanks Kelly & Terry for all that info! Also good to know warning about CGT and that the unit trust/discretionary trust mix works for others. I’d heard this from one source, and am learning quickly the value of second opinions!

Cheers,
Mel

Hi Kooringal,

I’ve just found this forum recently and hope that you went well with this problem. I know the area pretty well and think you are right about your val being way too low. Did you get another valuation done?

The truth of valuers is yes they are endeavouring to do the right thing by the banks, first, and the homeowners second and…[Read more]

I think this was a week or two ago and basically yep aussierogue (sounds like a spoof of Crocodile Hunter [] you are spot on. I recall there were comments like Melbournites paying $300K for inner city units with high vacancies that are worth much less etc. Ouch.

Friends bought in the 1-2 hours outside hobart range 6 months ago and have done…[Read more]

Welcome aboard![]

Personally I don’t think I’d sleep too well with only 10% ‘margin’ over my debt either!! From what I’ve read of Steve’s great common sense philosophies it’s smart to keep your investing activities to around 80% debt from the outset with the intention of continued reduction, so by the time it’s up around $6M, overall debt is no…[Read more]

Terry’s right – you’ve got to ask around. Why not ask the 10 richest people you know whether they use trust structures and if they say yes, ask them for their accountants name. As far as I know there are only three main types of trust – bloodline, discretionary and unit, with different purposes.

Don’t know much about Hybrid Unit Trusts – what are…[Read more]