just remember the killer stamp duty on purchases. It varies between states, but in NSW you can very quickly burn $20 – $30k in taxes and charges on each purchase / sale – this quickly erodes a lot of profit!!

For what it is worth, I fully agree with Scott no mates comments – those items he mentioned are the difference between a great deal and a real shocker. As for your list, all items that you have noted as "installed by the tenant at their cost" I agree with, but those items being installed by the landlord and amortised (air con, carpet, blinds, s…[Read more]

I use Robilliard & Robilliard at Parramatta. They are a full service law firm, which can be more handy than a standard conveyencer if something goes particularly pear shaped.

This is going to depend on the repair and maintenance clauses within the lease, as they can be so varied. Is it a net or gross lease? Generally most of the leases I have dealt with require the tenant to maintain the landlord's equipment within the premises. So like Scott said  "I'd suggest advising/reminding the tenant of their responsibility to…[Read more]

Please see another thread on this topic. Stanhope Gardens is actually a suburb with good prospects (reputable companies are investing millions in this area) however Bathla Investments seems very concerning from what I have just read.

Just one quick tip – minimise non-deductible debt and maximise deductible debt.. You seem to own more of your investment property than the PPOR – Whatever you work out I would move some of the debt from PPOR to IP at least getting the IP up to 80% debt.

The critical points are "collecting rent" and "carrying on business".My wife and I own an investment property (although it is technically all mine legally for tax reasons). The tenant pays the money into my bank account. My wife however deals with any issues arising from the property (the tenant is known to us, so a special relationship). She is…[Read more]

If the gov't reduced the tax breaks for investors in real estate (of which NG is one) then the investors would be less likely to choose to invest in property. This would have some effect on the demand for purchase of property (i.e drop sale prices slightly) but it would have a much greater impact on rentals – and in the wrong direction. Less i…[Read more]

You only need to be licensed if you are handling trust money. If the tenant pays the rent direct to the owners bank account (which he / she may give you direct access to), and you just take phone calls / emails on behalf of the owner, and organise tradesmen, then I can't see why you would need to be licensed. It is no different to being the lawn…[Read more]

Thanks all for your advice. I have spoken with council, and other than a minimum lot size and frontage (both of which I will comfortably meet) they don't have specific numerical guidelines, it is more qualitative and subjective, which is not such a bad thing. I am now in the process of compiling all of my information, and then will talk to some…[Read more]

Multiplying your costs by 1.25 is to give you a 25% profit margin (this is what developers will aim for), and I'm guessing dividing the sales by 1.2 is to allow for a reduction in sales price below what you were hoping, if this becomes necessary. That is, to get a 25% profit in a "bad case" scenario.