Hi,there are many things to consider here. I have done both in the past.It is easier to overcapitalise on a house, because a unit is more limited in what you can do. Also, remember that even if you fully renovate a unit, it is still a unit in an old block. Getting an entire block rendered and painted is a huge project and it can take many years…[Read more]

Hi Reginald,in NSW, there is land tax payable on units if the land you own across all your properties in NSW exceeds a certain value. The tax payable per unit is calculated based on the land the block is on and depends on many factors. For example, I know of a case where  two blocks were located in the Estern Suburbs of Sydney. One block had 7 u…[Read more]

Hi Karen,It depends on the state the property is located in. If it's in NSW and a contract was signed without any 'subject to' clauses, then the seller keeps the deposit if the buyer doesn't settle. 

Hi buymore,I have also once bought an IP interstate and wanted to do it before the end of the financial year for tax reasons, and couldn't get there in person because of work committments, so I bought unseen. I've had no issues with it and was actually pleasantly surprised when I went to see it a year later. However, that was in a small town in a…[Read more]

Thanks, wealth4life, for sharing Dent's views. I'm tempted to subscribe, will have a look at it.

Miccalady,investing in a mining town can be very lucrative, if you get the timing absolutely right. One of our customers bought in Roxby Downs a few years ago when property prices and rental yields were going through the roof. The rent went up another 25% over the next two years (in between tenants), her property went up by about 30% and it l…[Read more]

amsaini15 wrote:

SandraL wrote:
Amsaini,I think you should be able to set up an LOC with your existing lender (MyRate) to access the equity on your PPOR. This then becomes the deposit for your IP. You can then take out a new loan for your IP with CBA or whoever you like. The interest on the LOC will be tax-deductible, since its purpose is the…[Read more]

Hi Wealth4life,I am currently reading HS Dent's book, The Great Depression Ahead'. Interesting theories, especially given that the book was written a few years ago. What else is he saying about the stockmarkets at the moment?Thanks,

Amsaini,I think you should be able to set up an LOC with your existing lender (MyRate) to access the equity on your PPOR. This then becomes the deposit for your IP. You can then take out a new loan for your IP with CBA or whoever you like. The interest on the LOC will be tax-deductible, since its purpose is the IP. So a pretty good outcome if you…[Read more]

Ladybird,I think Fredo is right. It might be worth the extra expense if you were selling the townhouses. If you are renting them out, however, then a spa bath is just another item that can malfunction and be costly to be repaired.

Propertymistro,a townhouse would generally have a higher land value as part of its valuation than a unit. So the disadvantage would be a higher land tax (all other things being equal). The advantage, of course, is that if it's in a high growth area, the townhouse should go up more than the unit.

Zeable,as Terryw pointed out, if you borrow against your IP to pay down a loan on your PPOR, the interest is definitely not tax deductable. What counts is the purpose of the borrowing, which is to reduce your PPOR loan. The best thing you could do is pay down your PPOR loan as quickly as possible with any surplus funds you have, rather than p…[Read more]

Hi FrugalOne,as Richard pointed out, the bank will usually do their own valuation, so you paying for one won't really help you. What you could do is to get a few appraisals from RE agents, take the average, take 10% off (because this will be a market appraisal, and will be about 10% higher than the bank val) and see if you still have an LVR below…[Read more]

Marshes,as is usually the case, the answer is 'it depends'. If the proposed unit blocks were 'luxury apartments', meaning of a highers standard than the existing, presumably older properties in the area, then that could lift values. I have seen this happening in the area where I live. Three new unit/townhouse developments in the street, RE agents…[Read more]

Hi Jezzah234,we offer listings on domain.com.au and realestate.com.au at a very competitive price to landlords like yourself who don't want to go through a traditional agent.The brochures and a sign are definitely worth doing. If you have a good idea about the market for similar properties, then you shouldn't have any problems selling privately, a…[Read more]

Adding a bedroom will be at least $10k, however it should in most cases increase the value of the house by a lot more than that. Adding a bathroom depends on a number of factors. Is there any existing plumbing that can be used? I have previously converted an exising laundry into a bathroom, and it cost me about $10k incl. tiling, toilet, bath,…[Read more]

Pleiades,the main issue you will find with this type of IP is that the banks aren't keen on them, so you will face difficulties in borrowing. Either your LVR will be lower than for a straigh-forward IP, or your interest rate higher, or a combination of both. The yield looks very attractive, but given that only investors will buy them, your…[Read more]

If you go ahead with this, then think about increasing the yield by being innovative. One thing you could consider is putting in some laundromats (coin-operated) in one of the common basement areas. You could also install vending machines in the same room. I've heard of a case where the landlord made the equivalent of one unit's rent from…[Read more]

Mav,whilst it is a very valid question you ask, maybe more important is your financial situation. You have to look at how much you can borrow and still have cash reserves for a reno project. If all you can raise is let's say $300k, then the lower end of the market is all you can do. Don't forget to factor in that you will need existing cash…[Read more]

gp808,as number9 had pointed out, there are many options open to you, as you and your Mum have a lof equity available.The worst thing you could probably do is sell the family home, buy a smaller one, and spend the surplus funds (which will be tempting once they are in your bank account).There are many questions you need to ask yourself before you…[Read more]