Hi Terry,What do you mean "if you buy it for $300k is it really worth $400k?"I have been specializing in sourcing below market value property for quite some time. There are many reasons why you could purchase a $400k property for $300k, but i wont get into that now. But lets just says this property IS worth $400k, which can be confirmed by online…[Read more]

Thanks Terry, So on a purchase of a $200k, would you be able to give me a rough breakdown of the actual costs involved?

Thanks guys,. So by the looks of it, it is not very easy to get your estate agents licence.Please tell me if this idea would work…I plan to source property all over Australia, therefore I would need to get a Estate Agents Licence for each state, which is going to extremely time consuming and costly. Therefore, what I would need to do is the…[Read more]

This really doesnt seem logical by the banks..Scenario 1If you take my example of the $400k property. If I bought it $300k, the banks would only be prepared to give me $285k to buy the properpy.Scenario 2Now lets say I wanted buy that same property BUT i bought it at market value ($400k), then the banks would be willing to give me $380k.In the…[Read more]

Hi Terry,Thanks for the reply.Do you know if banks based their loan on the property value (LTV) or on the purchase price of the property? My guess is that the loan is based on the value of the property. Therefore if banks are willing to lend 95% to the value of the property, take the below example:If I wanted to buy a property worth $400k and I…[Read more]

Thanks for the reply Charles.Depending on your investment strategy and you goals, from my personal experience its good to do a combination capital and cash flow deals. It would be silly just to limit yourself to ONLY capital deals of ONLY cash flow deals.Although I am living in South Africa, I actually got my permanent residency for Australia last…[Read more]