Hi Dazza,

We use BMT & Associates for our properties.  They have offices around Australia Melbourne Contact # 03 9654 2233

Hi Rafael,

Just a thought – why not purchase now at possibly a lower price than that which may  be on offer next year and pay what you where going to save over the next 12 months off the mortgage in addition to the rent I am assuming that you are paying now.   Without knowing your financial circumstances this suggestion would probably be more than you would be required to pay in mortgage repayments, hence allowing you to pay down your mortgage a bit more quickly and as a result create some equity and get a good headstart into the property market.

Qlds007

Minimum 6% ?  How do you know this to be a fact?  

If developer sells property at the same price to the public as you can purchase through TIC how does this mean property is usually overpriced?  More importantly – how is it then construed that because a higher commission may be paid to such groups that the buyer is buying an overpriced property. 

Are you suggesting that a developer only market his property through "traditional" type agencies? 

Many developers as you are aware rely on a certain percentage of off-the-plan sales before commencing a project.  The best method for marketing is to utilise the services of groups such as TIC.  Sales are made at a quicker rate, allowing the developer to commence sooner and hence reduce holding & construction costs, making the end product  cheaper for ALL buyers.  Longer lead in times for sales always ends up in higher costs to all.

Be aware that some of the larger "traditional" agencies have project marketing divisions and make no mistake THEY ALSO are paid higher than normal commissions.  Are these also to be classified as groups selling "overpriced" property?

A developer has the right to sell their property for a price that the market is prepared to pay.  If they don't sell then the market  price is too high – the buying market today is very aware of value for money and proper research by any buyer will show value of a product in the area.  

If a developer is able to sell more properties through groups (be they traditional or non-traditional) and is prepared to negotiate a higher commission to reward effort, BUT still keeping the price the same for ALL buyers then the only person "losing" money is the developer. 

There seems to be an underlying sense in these forums that groups such as TIC are somehow doing the wrong thing by buyers.

Has anyone investigated just how much money some of these groups contribute to a variety of charities throughout the country.
The amounts might just stagger you.

It's about time people took responsibility for their actions when it comes to spending their "hard earned."  There are plenty of safety measures in the market place today to protect consumers when it comes to property investment so why not utilise them first instead of blaming everybody else after the horse has bolted.

That's my rant and no I am not a member of TIC or any such group. 
 
The best safeguard I have found to save me from paying for an overpriced property is to structure my fiances so each property stands alone as security for the loan.  Lenders will soon tell me if I can't secure finance based on valuations – alarm bells ring and I don't proceed.  Simple.

Glad that's off my chest. 
 

I have used a company called BMT Quantity Surveyors for our properties in QLD.  They are a national company and have an office in Adelaide try them.  We have been happy with their services and my accountant likes their reports – helps at tax time. 

Wow congratulations on having the intelligence to buy your first home.

You say that you could handle an extra $40 per week "if you have to" so why not do it now and have the benefit of building up a good buffer if rates do go up.  This extra payment would have a good effect in reducing your loan much more quickly.

I would be very wary of fixing rates at this time – one reason is – if you do you will be paying extra NOW because of the higher fixed rate so whyu not just pay the extra into your loan as suggested.

Also you may not be aware but if you fix your rates and decide to sell your house before the end of the fixed rate term the lender may charge you "break fees"  if they cannot get the same return on the money they lent you.

I know you are a little concerned and say that maybe you would have been better off using the rental assistance etc, however, property historically does increase in value over time.  You would also have the benefit of any value increases which you wouldn't have if you continued to rent.

All in all I think you have made a good start and just remember don't waste money on things you "want" as opposed to things you really need.  Example you may "want"  that new car, plasma tv etc but do you really "need" it.  Every unnecessary dollar you waste impacts on your financial future.

Good Luck and well done.

Cheers

Hi drhouse  I could be interested – whats the best way to contact you

Hi Richard,

Just querying your comment that the $10,000 in LOC won't be  tax deductible if  Eric uses it towards purchase an investment property.

I have done this on numerous occasions to buy IP and have had no problem claiming the interest as a tax deduction.  If the purpose the money is used for is to produce an income producing asset such as an IP, then I am sure the interest on the money used is a tax deduction.

Am I missing something re your comment?

You have a point, but I feel the market will determine how many tenants are available not a particular property manager. 

Does the on site manager own the management rights for the complex?  If so they have a vested interest in securing as many tenants as possible as this is how they secure their financial future. 

If your tenant has an emergency problem with their apartment and the on site manager is also your property manager they may get a faster response to their problem, which may also save you agro.

These are just general thoughts.  Why not give the OSM first chance to secure a tenant and if you are not happy try an outside agent.

We use on site managers.  When they are choosing your tenants they are also choosing their neighbours. 

For our house/land investment properties we use  Allianz and found them to be excellent.  Have had to make 2 claims in the past 18months and couldn't be happier with how they were  handled.  Very professional organisation.

For our apartment investments we use TerriScher.  Haven't had to make any claims yet, but  our PM from experience says they are also good.

As with any insurance – read the fine print carefully.