Terryw wrote:
you can only count one residence as your main residence at any one time.

A question for you Terry:

What happens if the husband is living in Brisbane but the wife is living in Sydney. Assuming both properties were jointly owned (in both their names) would they be able to claim PPOR for both properties (as technically it is their…[Read more]

It really would be an easy solution to simply leave the toilet as is.

Then remove the extra toilet from the bathroom and put in a shower in it's place so you have a free standing shower and free standing bathroom.

Then you have the benefit that at least the toilet is separate from the bathroom. Meaning a woman can do her make up while her man…[Read more]

streamlineinvesting wrote:
I know what you mean about pressure from other family members and that was a big concern, especially since she has 8 children who will all have their own ideas of what should be carried out. I made sure I talked to all of them about this before we got too far and they were happy enough for the works to be carried out,…[Read more]

Some banks will revalue properties in under 12 months (from what I hear) but if you don't own the property yet then Jamie is right. They will take the lower valuation of the two…they like to play it safe.

You will also need to source a construction loan if you will be building a property. Different from a tradition home loan so you will need to…[Read more]

Sounds like you have to do P+I on the guarantor loan so that it removes your family commitment eventually.

Generally speaking most accountants (of which I am NOT one) saying that interest only loans with offset accounts are a great way to go.

Being interest only it minimises your expenses, giving you more cash flow to continue investing. It also…[Read more]

Hey Danny,

There is a company called "Positive Real Estate" they offer a mentorship program (expensive…aka thousands of dollars to join) but they run free investor nights and will often take you out for a free coffee to discuss your investment plans.

Obivously they are going to try and sell you on their service, but there is no such thing as a…[Read more]

Thanks Benny, good article!

For those who can't be bothered clicking the above link here is what it says

Overland flow flooding

Overland flow is excess rainfall runoff from homes, driveways and other surfaces.   Overland flow flooding is water that runs across the land after rain, either before it enters a creek or stream, after a creek or…[Read more]

Terryw wrote:

This has happened because you have crossed the properties as security for the loans. ie cross collateralised.

Not much you can do now.
But, if there has been no CG in 10 years wouldn't you be better off selling the other unit as well?

Terry is right. By having your loan both with the same bank you have got yourself in a…[Read more]

On a more practical note:

Consider 95% loans – Stretch your deposit further by purchasing more properties with the one investment. You will likely have to pay Lender's Mortgage Insurance but it will possibly mean you can buy more properties sooner.

Get a good mortgage broker (who is also an investor) – A good broker will not only help you find…[Read more]

Before you go ahead and create a strategy I would create clearer goals.

Defining short/mid/long is good but defining them as 1 year, 5 years, 10 years, 20 years goals is better.

Also be more specific

Year 1 – Buy one property in the range of $200,000-$300,000 that delivered $400-$600/week in rental income. I want to buy a property that is…[Read more]

Hey Joey,

I just want to say that 5 properties is a good goal. But a better goal is to understand why you want those 5 properties and what your short, mid and long term goals are.

Just "buying 5 properties" won't make you financially free just as "starting 5 businesses" isn't a guaranteed way to be financially successful.

Know exactly what you…[Read more]

Thanks Jamie M for clearing that up for me,

Didn't realise that desktop valuations were only done on sub 80% loans.

It makes sense though. When there isn't as much risk for the banks why would they pay more for a full valuation when history has probably proven they don't really need to.

And when the loan is over 90% they are taking much more…[Read more]

It all depends on how big the house is.

Is a second toilet really a selling point for a 1 bedroom unit? I highly doubt it.

But it you only have the one bathroom with a single toilet and it's a 5 bedroom house then it may make sense to keen the separate toilet.

It is all about making the most of the space you have. If people won't need a second…[Read more]

MAJOR BITCOIN UPDATE!

Yesterday Bitcoin HALVED in value due to the fact that China put major restrictions on the purchase and exchange of bit coins using Chinese currency.

It is a very speculative market. Many are calling it a bubble like the internet bubble of 1999

Also to do a transaction you are required to download the log of every single…[Read more]

May I just ask…what difference does it make?

I thought you do't get control over who the valuer is anyway? It is up to the bank to choose their own valuer

It's been pretty well covered but just wanted to note that sometimes (especially when the market is hot) valuers will simply do a computer valuation.

This means they won't drive by or even visit the property. There is enough recent sales data to value it using only the internet.

You can find previous sales prices through a property like Real…[Read more]

Hey Gizzy,

I actually personally know some of the people who work for Positive Real Estate so let me indulge you a little bit.

Firstly – The company is legit. I have found the smaller real estate mentors and sales people to sometimes be cowboys taking loads of commissions and leaving the investor no growth in the property (one of my friends got…[Read more]

Because you relinquished the right to control your expenses when you bought the unit.

Go to the body corporate meetings and find out exactly what the strata is so high. Is it going into a sinking fund? Is it paying repairs or maintenance?

Before you buy a unit you are actually entitled to see the minutes of the body corporate (for the last 2…[Read more]

Give Terry a call. 14,000 helpful posts later he has proven that he knows his stuff!

Come to think of it I don't think I have ever seen an incorrect comment from Terry

If you organised the deal and analyses the returns yourself then that is probably the only case where this may be a good investment.

If the company is paying sales people to sell this to you the chances are that they have already taken all of the cream off the deal for themselves. Meaning its probably too good to be true.

I have seen many people…[Read more]