Hi,To date I have used Metropole finance to refinance my existing PPOR and set up my LOC's. I am a newbie at investing and this will be my first IP I will be buying.The refinancing process was handled a little unprofessionally only because of the inexperience of the account manager I was assigned. However, we got there in the end.As for obtaining…[Read more]

Hi all,Thanks for the fantastic insight.My question stems from my search for an overall strategy that will get me to my goal.Reno's may be part of the equation that gives me control over CG. Manufacturing it rather than waiting for it. I am looking at other 'add-value' techniques also. The overall strategy needs to give me control of a property…[Read more]

I have been looking in the data banks of API.How do I go about finding out past sales in a particluar suburb / street?I would like to start getting a feel for what is the average sale price for a particular suburb. So that I may recognise an below intrinsic value when it crosses my eyes.Also, the length of time those houses spent on the market.PJ

Thanks Kaylah,I'll take a look.PJ

Hi all,When we say "……split it into separate sub-accounts"are we saying there will be totally separate bank accounts each with their own fees etc?Is this purely a bookkeeping thing? If it is, my wife is a book-keeper and could easily set up a set of boks for the LOC account within which would exist a number of transactions attributable to…[Read more]

Thanks guys for the confirmation.It is always appreciated.PJ

Hi MrFairGo,Thanks for the excellent insight.I am attracted to vendor financing as a business model that directly compliments my investment activities.Having been burnt by past business ventures, I am just wary of claims about the ease of running a business. Nothing like old school experience!I am currently weighing up my options based on my…[Read more]

Dockster,I would have thought the purchase price is the purchase price. Why should this effect the performance?I am led to believe residential properties within the 5 – 10km zone of any CBD should always perform better than the averages. On all fronts.Why would a 'middle of nowhere' suburb with no obvious economic driver (mine etc.) out perform a…[Read more]

Grinmar,Is subdivision the only way to inject cash into the initial debt of the IP?I have looked at vendor financing from the angle of improving cashflow instead of reducing debt. Thus allowing me to keep control of the prime asset. However, vendor financing is more difficult than it is described. not to mention tying up equity.I have the t…[Read more]

Thanks grimnar for your time effort in discussing my questions with me. It is appreciated.Your persepctives have all crossed my mind. I have created a few spreadsheets to help run the numbers in a realistic way.What I am begining to see though, you can talk about different strategies until the cows come home. If you do not have the cashflow to…[Read more]

Thanks grimnar,I appreciate the perspective and the brainstorming. It makes forums such as this worth while.I will take a look at this angle as part of my thinking through how I should tackle property investment. This will be my first time venturing into property investment and I do not want to storm down a path only to find I have wasted my t…[Read more]

The strategy I am looking to adopt is to purchase quality properties with an existing house on a large land parcel. Subdivide the land solely for the purpose of generating cash to reduce the debt. Later on, I will renovate the house I retained to increase rental returns. I will not be building units on the subdivisions. No time or equity for th…[Read more]

It's a hard one!I am looking for B&H properties I can value add to (mainly subdivide to reduce -ve gearing) and retain a portion for long term growth and eventually +ve cashflow as rents develop.Suburb 'X' I mention above is mainly high end housing (PPOR) that have been designed to maximise their blocks of land. Suburb 'Y' which flanks it (acually…[Read more]

Now I am puzzled?In my  scenario above (which is based on actual suburbs) suburb 'X' is further away from infrastructure than suburb 'Y'. That is. schools,shops,transport. They both enjoy  coastal proximity (within 1km). Suburb 'Y' offers larger blocks and excellent opportunities to value add.What we are saying is, location and struct…[Read more]

Hi all,I can see the opportunities in doing Reno'sIt is the time that kills it for me. I work long and stressful hours just so that I can secure property and service -ve gearing.What little time I have left is spent with my family and sleeping.The numbers need to work without me being on the tools.Mario

Hi all,Thanks for the perspective.I believe I have a clear vision of where I would like to be in 5,10 and 15 years from now and the reasons for these goals.In investment terms, I have quantified these milestones, giving me a target.Applying residential property to achieve these targets from my particular starting point and personal circumstances…[Read more]

Would it be fair to say then, buying/developing cheap housing in new suburbs where these things (infrastructure etc) are being created  would place at the ground floor when it comes CG?I am pretty sure a house will never be as cheap (at least in Oz) as when it was first built. Wouldn't this effectively reduce your exposure in the long run?PJ

I think that article is great news!We are in a correction which means bargins are more realistic. Negotiating power of the investor has increased.This is why I need to sort out what my game plan is. Specific to my present circumstances, my starting point and what I need to do to achieve my goal.I need to sit down with a seasoned investor, lay out…[Read more]

Thanks Terry for taking the time to explain this to me.I appreciate the effort.PJ

OK now I am confused.My vocation is subject to litigation. Because of this my accountant has advised, any property I buy should be purchased under the umbrella of a family discretionary trust. The owner of the property is the name of the trust.At present, I am the trustee of this trust with my family as beneficeries. That is to say the entity…[Read more]