Hi vyaw2003,
You can claim the property expenses on a pro-rata basis. I am not sure what .20% is in your calculation.
The other thing you can look at is depreciation.

cheers,
Sanjiv Gupta

“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.” – Nelson Mandela

Hi shanshan,
Firtly, welcome to the forum.
Before making any offers you need to consider a number of things:
1. Based on the numbers you provided, the gross rental yield is 5.95%. I wouldn’t really call this decent gross yield.
2. The fact that the property has been on the market for 6 months and has not sold means there are not too many people…[Read more]

Hi Col,
I think it depends on why one buys a property – is it a trading deal or buy & hold deal? I would have personally kept the property and redrawn equity to put into another deal. That would have increased the repayments and made the property cashflow negative or neutral but I would have reviewed the rent (in light of the increased property…[Read more]

Hi Tara30,
Its not unusual to pay 8.8% in country towns. I am assuming that includes GST. Other charges are also common and within reasonable amount.
That said, have you shopped around? You could contact couple of other property managers and ask them to give you a rental appraisal and schedule of their services & charges.

cheers,
Sanjiv…[Read more]

Hi ao,
I do not think its illegal to offer high rate of return as long as you can pay the interest and principal. In fact I offer slightly better returns myself.
With respect to the documentation you could do both ways – you could complete a Statutory Declaration and get it signed by a JP or do a proper loan agreement through a solicitor.
Just out…[Read more]

Good one, Milly

cheers,
Sanjiv Gupta

“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.” – Nelson Mandela

I’ve got the DVD. Its great, isn’t it?

cheers,
Sanjiv Gupta

“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.” – Nelson Mandela

Hi PochPoch,
The way I look at it is if the “dodgy” suburb has got the right infrastructure (in terms of transport, schools, shops, hospital, etc.) it will eventually pick up. In the long run there will be enough demand and therefore both rents and capital value will pick up. The answer lies in your investment timeframe. If you are expecting to…[Read more]

smartin12474,
Make sure you speak to the accountant regarding the structuring. You may need to speak to a solicitor as well. Structures are important to protect your ass(ets).

cheers,
Sanjiv Gupta

“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.” – Nelson Mandela

Hi Joel,
You could look using a long term deposit bond or bank guarantee instead of using your savings for 10% deposit (that said there are some conditions to get a long term deposit bond). Alternatively, negotiate a $5k deposit or something small like that. That way you can use your money until settlement time comes.
I have not done much research…[Read more]

Do it at your peril.

cheers,
Sanjiv Gupta

“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.” – Nelson Mandela

Thanks Jamie for your post.
I couldn’t find meekethara on realestate.com.au and then I did a search on Australia Post website and it does not exist there either.
Is the spelling correct?

Cobar in NSW is still showing great returns. I am buying a property there with 10%+ rental yield.

cheers,
Sanjiv Gupta

“There is no passion to be found pla…[Read more]

G’day Colin,
You should consider the following before making your decision:
* Limited capital growth
* Low LVR
* Lower control over the property in terms of renovating or adding value
* High management costs
* As raddles mentioned, you need to look at the legals or residency conditions, etc.
On the plus side, Australian population is ageing and…[Read more]

The Mortgage Manager I deal with was saying ATO is targeting LO DOC borrowers.

cheers,
Sanjiv Gupta

“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.” – Nelson Mandela

Pros:
* Better rental yield
* One set of rates
* Lower maintenance
* Lower land tax
* Easier and less costly to do internal renovations

Cons
* Possibility to strata title and sell individually later and therefore have higher capital growth
* Lower LVR if more than 4 units
* Usually less land is allocated to each unit
* Body corporate fees
* Less…[Read more]

You can also try Suburb profiles on domain
http://www.domain.com.au/public/apm/suburbprofile/default.aspx?mode=research

cheers,
Sanjiv Gupta

“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.” – Nelson Mandela

Thanks Marc for posting the article.
Its a good reminder of how reducing unnecessary expenses can lead to financial richness in the long run.
Steve talks about the 33:30 challenge.

cheers,
Sanjiv Gupta

“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.” – Nelson Mandela

Thanks Dom
Did the agent say why the large Perth company is buying in Carrum Downs and no where else? What is so special about Carrum Downs?

cheers,
Sanjiv Gupta

“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.” – Nelson Mandela

Being rich means having choices, the ability to choose to work not because you have to but because you love to; the ability to spend time doing things you love, with people you love; the ability to contribute to the society; the ability to appreciate what you have and being thankful for that; and lastly & most importantly, rich is loving and being…[Read more]

Great work, Dr Spock.
I hope you can knowck your remaining debts soon.
But it makes me wonder what kind of debt is costing you 34% interest rate?

cheers,
Sanjiv Gupta

“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.” – Nelson Mandela