@siraitken – If the growth has been 10% average over the long term couldn’t this possibly mean that the prices in the area have peaked and thus it is no longer a high growth area?

HI Luey,

You can start investing with $23k, but maybe not in the CBD. A lot of people will disagree with me, but I think getting into the market in a large rural town (over 8,000 ppl) can be a good place for a lot of people to start. You can buy properties for around the $100k-$150k mark, which seems to suit your budget.

Getting started is the…[Read more]

It depends on how quickly you want to get your money back. If it takes a while for properties to sell then can you afford to have the property on the market for 12 months before you get your money back? It might be an idea to try and rent the property out while you are trying to sell it so that at least you are getting some money coming in.

If…[Read more]

@ homersyd – Yeh you have to pay lender’s mortgage insurance if you go over 80%. This is you paying the bank for the banks increased risk in the deal.

Also, having few properties with the LVR over 95% can sometimes limit your borrowing capacity.

Hey KG,

If you could, when people call or visit the open house ask how the found the property. Then we can all learn what works the best. Is it the sign? The newspapers? The internet?

I can only recommend the accountants I have used and found helpful. They are not specialists when it comes to property, but they know legal structures and if you have an idea of what you want then they can talk you through things and teach you how to do things. At least that is what they do with me and I am very grateful.

They are called PKF…[Read more]

GH – I can’t offer advice on Perth spefically but like everyone has said we are all in the same boat. I am in Sydney and the prices seem ridiculous here. There is a profit to be made…but you need a fair amount of cash to do it in Sydney. Perth is different from the rest of the Australian property marketing, but then every city is different from…[Read more]

Sorry I don’t believe that question can be answered.

Different investors look for different things in a rental property. If you had a positive cash flow investor looking to buy it then they would want somewhere between 7%-12% rental return, if it is in a high growth area then someone might be willing to accept a 4% rental return.

Generally the…[Read more]

If you are worried about this happening to you then just make sure you get a good rental manager. When someone signs a rental agreement they have to state who will be living in the house. If people who are not on the rental agreement are living in the house then you may have a legal standpoint by which to evict everyone.

If you are worried about…[Read more]

Hey Julie,

Just out of interest, why are you looking to invest in the UK instead of Australia? I am just asking because I have a UK passport also, but live and work in Australia and I would be really interested to know what the advantages of investing in the UK are.

Thanks

There are definate advantages to owning 2 properties instead of one. Firstly you get capital growth on two properties…not just one property. Secondly, as you will be renting the second property you get the advantage of rental growth, which means each year you can make more and more money from rent.

Do you want to be a property investor? That is…[Read more]

If you are asking whether you have to refinance in order to draw out your equity then the answer is YES.
There are only two ways I know of to access your equity. Either through selling the property, or taking out a loan against the equity.
So you might have bought a house for $300k but it is now worth $330k…this doesn’t mean you have $30k…[Read more]

Hey Matt,

Getting into the game sooner rather than later is a good idea. People who wait until “they can afford it” find that they never can afford it. Getting into the game when you are only 20 means you can take full advantage of capital growth over the long term AND rental growth over the long term. Hopefully making you a rich man if you keep…[Read more]

So Paul,

When you mentioned “carry on the business of providing credit”:
Does this mean that if I approach a vendor who has NEVER done a vendor finance deal before and they agree to carry back 20% of the finance to me as a person (not a trust/company) then they don’t have to apply for a license? Just people that do it regularly?

Hey Paul,

Thanks for telling us about this. I am looking at doing some vendor finance deals this year and next year so this is important to me. I have a question.

The National Credit Act applys when giving credit to a consumer, but the PDF mentions that if you engage in the debt as a company or a company acting as a trustee for the trust then…[Read more]

Hey Elle,

I have never done this before, so take this idea for what it is…an idea…I haven’t tested this.

Maybe you could buy an old house, get it trucked to your block of land and re-stumped. If you can find a cheap house and get quotes on the movement and re-stumping then you might have a chance of it coming in at under $100k.

For me most of my research is done online. I look to invest in areas outside of where I live, so having the internet at my fingertips really helps me get a lot of information about an area.

I have spent countless hours of RE.com.au looking through property after property after property. The more you look at properties the more you get the know…[Read more]

Richard,

I remember reading a previous forum thread saying that it is difficult to get lending for wraps. That banks won’t lend to people onselling the property through a wrap. Is this true? Do you have to run a company like First Home Owners Group Pty Ltd to get involved in wraps?

Also, just to understand the legal obligations better. Does the…[Read more]

As an investor I would be concerned that the shop has been empty for a few years. If I was buying commercial real estate I want to know that I can rent it out. Is the shop on a busy street? Is it close to other shops? What would make a business want to make this shop their location. If the shop was currently tenanted then the property would be a…[Read more]

Oh ok. So let me understand this (I am new to wrapping so would love to learn more). Someone else (Mr A.) buys the property for Sharon, and then sells it back to her. Sharon then pays Mr A. principle and interest on the loan, and Mr A. pays the bank for his loan out of Sharon’s payments? How does Mr A. make money? Is it by charging a higher…[Read more]