rjk,

How many in one town? – that’s very individual and relates to the person’s risk level and amount of risk associated with the town. To date, I have only bought 1 house in any one suburb or town to spread my risk as different suburbs and towns do have different growth times, different risks etc. But like I said, everyone’s tolerance to risk is different so everyone’s answer to that question will be different.

Kaye, that was a great report on the town. Is it a regular repost you access town info from or a one off study someone had done on that area only?

Good Luck rjk
PK

Milly,

When we sold our PPOR which had the IP’s all cross collateised, they then took the new PPOR as the security over all the IP’s. This was at a “cost” as I was changing securities, I think it cost us $150 per property.

So at present we have one IP that is stand alone, and 3 that are cross-coll. One of the three only has itself and our PPOR as security, and that’s the one we will refinance shortly. The other two IP’s have themselves, the other IP and our PPOR as security. These two IP’s are on fixed terms so when they fall due next year then I give the bank a choice of either refinancing with only the properties as security for themselves or I’ll take the business elsewhere as each property has enough equity now to cover itself so that gives me more options. I’d do it sooner, but we are on a good interest rate at present so that’s why I’ll let them have their way for another year.

I don’t think you will have a probelm if you wanted to sell one, unless you’re other properties don’t have enough equity to please the bank, if this is the case, they may ask for cash from the sale to reduce one or more of your other mortgages to bring it within their guidelines. Also, this may mean the securites on the other mortgages have to be changed and this may be at a cost!

Each bank is a bit different so you probably need to talk to your bank to find out their “policy”.

Good Luck
PK

Hi there,

The first home owners grant isn’t applicable if you plan to rent it out, it’s to get you into your own home. Check the grant conditions, someone on here could probably clarify but I believe you have to live in the house for either 6 or 12 months, not sure which.

Secondly, from my experience and others would disagree, but I feel it’s best to get into the market with a cheaper home first, build some equity and then move up. At least you can still afford to live life while paying the mortgage that one. If you start too big then your mortgage repayments will eat into your wages and you may not be able to live the lifestyle you want ie: go out etc.

Once you’ve built up some equity in your first home, then you can decide whether to sell and upgrade or whether to use the equity for investment properties etc.

Consider your goals, wht do you want to achieve and then look at how you can go about getting there.

Regards
PK

Millsy, there are still chances to purchase +ve cashflow property but not quite with the same formula as the market has gone up and changed since the book was written.

You need to find your niche market, for some it’s country proerties, for others it’s renovations, others it’s student accomodation etc. There’s scope still for +ve cashflow but you need to consider your comfort level with the various ideas so you can work out what’s right for you.

Read through the forum, other people’s questions are very inspiring at times, you can learn heaps. I have!

Regards
PK

Misty,

Have a read of the article “Don’t fence me in” in this month’s API magazine. WHile mainly involves land that changes overship due to fences etc being in the wrong place, it does touch on issue of obtaining land that has been used ie: for over 15 years. It also states some exceptions ie: crown land in certain states etc.

I don’t know your exact situation but the article might shed some light on whether you may be able to obtain the land through “posession” rights.

Regards
PK

Does that mean when you go for a loan in NZ they are happy to look at you AUS income?

PK

Tile shops have a grout cleaner that’s a mild acid, lives most dirt, although if the grout is thin then it’ll ift the grout too (found that out the hard way). Or you can buy a tool from the hardware to rip the group out and then regrout.

Whichever way you go, I’d suggest spending the time to seal the grout after you’ve got it clean. Most tile places and hardwares have the selaer, but forget painting it on with a small paintbrush like the instructions tell you. The quickest way I’ve found is to purchase a horse syringe froma farm supplies shop and simply squirt the sealer along the grout lines. Saves heaps of time.

Regards
PK

I read the condensed version in the Readers Digest and happened to like the condensed version (but I think all the Mills and Boons bit was taken out and only the main “facts” were printed).

Well, facts, that’s an interesting word in this case.

Shame it wasn’t real as I believe these things do happen in some countries and publicising it so people knew what was going on was a start to fixing the problem. However, when the publication turns out to be fiction then it does nothing for a true cause and could hinder those that really do need some help.

Does she get to keep the profits from the book?

PK

HI there GreatPig,

Well, our equity levels aren’t as high as everyone else’s but we’re comfortable with where we are at.

4 IP’s – 2 have 20% equity, 1 has 30% equity and 1 has 50% equity. We are comfortable with this equity level as IP’s are paying for themselves and will do so even if interest rates rise a couple of %. If they rise beyond that we know we can afford to pay some into the mortgages or perhaps rents will rise a bit by then too.

Yes, give him a call. There is some minor maintenance (cleaning) of the cooler that supposedly should happen yearly.

Regards
PK