Marshes,

Prop 1 is obviously better. It is not just the free $14K you are getting but remember you also get stamp duty relief of about $10K for your own home. So we are talking $24K free money really.

Prop 2 will reduce your tax for sure but this is also available to you after you move out of your PPOR and make 2 x IPs out of it in 6 months time. 6 months of earlier tax relief will not come close to the $24K free money you get out of Prop 1.

All the best

Shannon,

I don't think the market is going to slow down for the following reasons:

1. FHBs are back to their 'normal' levels of approx 20% of the market and yet prices continue to rise

2. We have seen a steady increase of upgraders back in the market. Some months ago there were very few upgraders & some investors were dumping stock onto the market that was purchased by FHBs. But there are lots of upgraders who have sold to FHBs, now supporting the middle and higher end of the market

3. Investors are making a re-entrance into the market. Recently published surveys have 3 out of 4 investors who intend to purchase, waiting for the boost to expire.

4. The threat of interest rate (IR) rises are seeming to be having the effect of bringing forward investment purchases. Lenders' serviceability calculations are done on present IR + 2% – so, “better to get more funds now while standard variable rates (SVRs) are at their low point”, seems to be a theme we’re hearing.

5. People who were held back by fear because of media reports or people like Prof. Steve Keen, now see the folly of expectations of 40% falls. They are now facing the reality of paying 10% more than they could have paid, 6+ months ago.

6. While-ever the share market is volatile, people retreat to the relative safety of bricks & mortar.

7. Unemployment is not expected to get to the levels predicted. Gee – we did not even enter a 'technical recession' while the global financial markets were in meltdown.

8. Demand is still exceeding supply. New housing starts are still weak. This pushes up prices of existing stock.

9. Immigration still high, etc. etc.

I think the longer you wait at the moment the more you'll pay.

Will you be holding a bond type amount to be released to them on satisfactory condition after move out?

Another vote for CGU and I have claimed a few times – all good and looked after me well.

  Yes in my view BUT as others have said you may get a different val amount when it is for mortgage purposes – so tell the valuer that that is what it is for when you commission him/her.

  Yes BUT in the present credit environment if there is MI involved, then the MI may not want an assigned val from you. They'll possibly do their own.

  Yes. Valuers calculate value based on past comparable sales. An advertised price is completely irrelevant to a valuer. Actually an advertised price is completely irrelevant to a me as a Buyers Agent too.

Cheers Nat.

There are cf+ deals to be had in Sydney & major regionals like Newcastle. (which I mention only because I am familiar with it. I am sure there are others like it).  I don't believe you have to go out into the counrty to buy sub-optimal property with low CG prospects to get good yield.
You need to think a bit laterally. You can rent by the room to students near a University for example or buy a house with a small flat attached. Both these kinds of property we buy a lot for ourselves (as investors) and for clients. That way you get the best of both worlds CG & yield.

They already know. They have a saying: "The buyers are liars" – the sales department told 'em so.

  Those two websites are the biggest in the country. In reality nothing much else amounts to anything much by comparison. Kyle, most people find the distance both in travel time, cost of flights, accom, different time zones to WA difficult to deal with when buying out of state. Then when you get to the Eastern States you don't know what the good or bad areas are anyway.
Some with the time & $s available do several trips and lots of internet research. Some develop relationships with real estate selling agents and then get trusted friends to do inspections for them. Others hire Buyers Agents like ouselves to do all that for them. It comes down to personal choice.

Until we get national conveyancing standards in this country (like road rules) each and every state & territory has their own quirky things. You don't want to be paying your Perth-based conveyancer for their education in Victorian or NSW conveyancing in my opinion. Hire a local mortgage broker by all means and you can do the conveyance remotely by e-mail / fax & post.
Cheers,

Good work buying the PPOR. Try the pool fencing panels for front fence. You can get them cheap at Bunnings. They last and come pre-painted / powder-coated – so maintenance free.

And finally, what sounds like a silly idea but it isn't. Buy it in black. The black fence simply disappears whereas a lighter colour comes to the forefront and becomes the feature you never wanted. Black will also disappear into the hedge you want to grow.

I can see why you are attracted – the yield is good. But there is, as they say, "no free lunch". At <50m2 there are difficulties getting finance or getting finance at decent LVR's. There are very few lenders that will do it.
Shared laundry is not a big seller as already mentioned.
You could perhaps do better.