Hi PB – you might also have a look at Carnegie (12km SE), though prices have shot up lately. Vibrant local shops, walking distance to everything, train & tram, not far from Chadstone, etc.

Peter

Maybe it’s OK in theory, but money often creates friction in families, even though you may all be well-intentioned now.

I personally wouldn’t do it.

Think of the opportunity cost and what you could do with the $100k. For example, buy a $95k IP now, and borrow against it for your PPOR deposit when you want to buy your own home? The IP should…[Read more]

Way above my head, unfortunately : ( but I like the general idea.

Put a one-off $5k payment into a P&I loan, save maybe $20k (future dollars) in interest and shorten the term of the loan 5 years.

Spending 5k today to get $20k more equity over (say) 20 years is not that bad (7% pa) for an unleveraged risk-free investment like paying off a loan.…[Read more]

Congrats Richmond! Too bad I choose not to have a telly so can’t watch your efforts

‘good’ salary?

Leaving aside Arty’s comment that there is no such thing ; ) for a single person receiving no govt benefits, $20-25k is very modest and permits only limited savings ($2-5k annually?). Maybe add a bit for Sydney where rents are higher.

If we boost…[Read more]

I don’t worry too much about budgets, but I:

1. Have a very clear idea of what is essential and what is not
2. Question every non-essential expenditure at point of purchase
3. Have money automatically taken out of my bank account by managed funds, extra payments on your credit cards, home mortgage or special ‘IP deposit savings account’. (20-25%…[Read more]

Hi Alf – For WA properties, try Dept of Land Administration (DOLA) ($24 per postcode, they email you the info). Or use Home Price Guide ($49.95) who also email.

I then go down to the local internet bar and print it out on their laser printer (cheaper than wasting half my inkjet cartridge on it).

Peter

Yes, I’d be on the side of claiming the depreciation allowance if it’s available.

But a slightly different angle of this discussion only came to me last night when I was looking at property prices in a town. I was trying to compare like with like, so was looking at 2br villa units.

Older (1970s) places were about $60k and newer (1990s) places…[Read more]

no websites = lots of cheap properties outsiders don’t know about = opportunites

Thus the modus operandi might be to look up the yellow pages for REA in the area and phone them!

The smaller the town the less online-minded they seem to be. Even where properties are listed on the web, they are not necessarily on the big RE sites, but rather on the…[Read more]

‘as I can borrow the full amount, I should be able to get the property for nothing.’

Yes, it might be ‘nothing down’, but it’s not nothing. Consider the opportunity cost of the finance going towards something better before proceeding.

‘My philosophy is if I get a bad to mediocre property for nothing is better than no property at all.’

Yes, but…[Read more]

Hi Alf – I don’t disagree with the concept of buying interstate, though as one whose just booked (another) trip to WA, why not look around WA country areas first?

To answer your questions on info sources:

a. vacany rates

Ring up property managers in the area and ask what properties/locations are in demand. Firstly ask about what they can offer…[Read more]

Cremin: I’m surprised about Bunbury being a positive haven. My observations is that rents there are lower than Kalgoorlie and prices are higher.

My own (brief) looking is that there is very little under $100k. What $90k properties I’ve seen have rented around $120pw – well short of 10.4% rtn.

What sort of properties down there have given $240pw…[Read more]

Me? Electronics salesman!

It strikes me that IT people are heavily represented amongst us. Wonder how many participated in the tech boom/bust?

Angels: liked your comment about there being no such thing as boredom. To me, people who complain of boredom severely lack imagination. As do those who say their schooldays were the best parts of their…[Read more]

Hi Carbloke: Care to mention the % return you’re getting in Kal? I find that the average is close to 9%. 10% should be doable if you bargain hard on several places until you get one to accept your offer.

Though I’m a skeptical re ‘discounts’ being offered. I’d thought they’d want to charge you extra for all the due diligence work they’re doing…[Read more]

Steve’s book seems to be everywhere at the moment.

Picked up a copy of MX on the train earlier tonight. On the back was a full page ad from the ‘Today not Tomorrow Institute’ seminars (anyone know about them?). Then a few pages in was a quick rundown on ‘From 0 to 130’. It only got 3 out of 5 stars – I reckon it’s worth at least 4!!!.

And off…[Read more]

I’d be worried about the population growth of some of those places. SA as a whole is growing slower than the national average, and many country parts of it even slower.

But having said that, you might do OK with villa units or duplexes (for example).

Flats/villas are a small proportion of the housing stock in many country towns. Given changing…[Read more]

Forgot to answer Mel’s query re brick vs other.

‘spose it’s my West Australian bias, where double brick & tile is dominant in the suburbs. Also growing up in non-brick houses while better-off relatives resided in brick & tile places reinforces my prejudices.

But yes, apart from that, it’s the supposed higher maintenance costs of non-brick…[Read more]

Yep, everyone’s right – it’s more like 110 seconds rather than 22 seconds! But still quick enough to do while in the RE agents, before going out to look.

Peter

Hi Alf – I’ve found Jan Somers is fairly even-handed re growth versus yield, particularly in books & articles written in the last couple of years (refer to ‘More Wealth from res prop’ & a recent article in API).

However Monique Wakelin is very staunchly in favour of neg gearing.

I share your concerns re debt, though make sure that you aren’t…[Read more]

I’m a sucker for reading and own & recommend the following (even though they advocate different approaches, not all of which I will use):

* Property

From 0-130 properties in 3.5 years (Mcknight)
Seven Steps to Wealth (Fitzgerald)
Your Investment Property (Bell)
Your Mortgage and how to pay it off (Bell)
How to create an income for life…[Read more]

I’ve been lucky and my family have been very supportive (even though the IP is about 2500km away from me). Not only that, but they followed my reasoning on my choice of town and thought the price I paid was reasonable.

Also as I bought in the state in which they live, property ownership there will allow more family visits : )

Peter