Sonya, can I ask what investment property software you’re using? I’m using the free version at http://www.ipropertyco.com and I’m interested to learn if others are using it.

Relating to the comments about only buying a place that I would live in. I agree with Sonya, that’s not a very good indicator of whether it would make a good investment or not. Actually, if I look at the properties I would live in, I wouldn’t be able to buy one as they would be too heavily negative geared. In fact my friend advised me not to get hung up on whether I would live in the property or not as the fact is that within inner metro cities there is a shortage of rental properties. A friend of mine who is an agent on the Northern Beaches told me that the other month he did a Dutch auction on a rental property because so many people turned up to see it, he simply asked people to fill out the rent application and accepted the one with the highest rent.

I guess like anything, the facts don’t lie. Although it would be important to ensure that you’re property doesn’t have a power generator next door or full of cell towers that could give your tenants cancer, yet in saying that, if odd factors like that mean that the property can be bought for a lesser price, then perhaps you could get good cash flow on it anyway.

Yes well due-diligence about the facts on the property would certainly uncover any issues with Bikies living next door and getting a depreciation schedule done would cover the fittings component. Actually my friend advised me that he always gets a dep schedule done and in one case before the cooling off period. That’s a pretty good idea.

Additionally, I’ve been using the post sales data through Australian property monitors and Residex and they have good stats about the vacancy rates rents and values.

Cheers