Hi Ajago5,As pointed out above, you can find data that the Australian property market is overvalued or undervalued, depending on what you look at. You are right to be cautious and not blindly jump in. But the obvious risks associated with such a huge investment in uncertain economic times like these can be mitigated. I would suggest the…[Read more]

Hi W0mbat,agree with the above comments, however it could be a good opportunity to negotiate the price further down, as the seller obviously needs to sell desperately. Before you can even consider it though, I would suggest getting a very trustworthy builder in (a family friend, relative, or somebody that has worked with a family member etc), to…[Read more]

Hi scarecrow,<moderator: delete advertising> Dogmersfield, your website appears to be a REA's website in Chicago, so why would you use gumtree to look for apartments (presumably in Australia?)? 

Hi Property Investor1,The area is definitely booming and worth a look in terms of investing. Just a word of caution on buying developments off the plan in that area, as we've seen and heard of a number of developments taking significantly longer (by up to a year or even two years) than originally planned.   

Hi wisepearl,Another thing to consider is the size of yor hot water system. If it is 50l or less, then putting in a bath makes little sense, as you won't be able to fill it with hot water. Otherwise a bath is something a lot of tenants will value.  

Owners not paying their levies usually does not become a major issue, as there is a legal process for their recovery as mentioned above. You will find that most owners will eventually sell their unit when they are really unable to pay the levies in order to avoid bankruptcy. I have never heard of a strata manager walking away from their job be…[Read more]

I would recommend the western suburbs in Sydney, eg Liverpool, Campbelltown and beyond. You get relatively high rental yields, low vacancies and projected population grwoth over the next 20 years. The key to mitigating your risk of bad tenants is to add value to the property you buy (renovations) and create something that is better than the…[Read more]

G0biin,Why wouldn't you tile the kitchen? They are more durable than floor boards, washable and you can't burn a hole into them. Of course the tenants could crack them, but that is not that common, from what I've seen.Floor boards will show scratches. Generally speaking, the darker you go, the harder the wood gets, but if it still gets scratched,…[Read more]

In-house auctions are fairly common in the Eastern suburbs of Sydney. They have their advantages and dis-advantages, but they are definitely very good for doing market research. Even if you don't sell your property this way, it would be well worth your time to attand a couple of these auctions. In a couple of hours, you can get a pretty good…[Read more]

Everyday32,If it's cash flow positive property you are after, then I think it will be difficult to just buy that in Sydney. You will most likely have to renovate or do other things to the property to make it cash flow positive. 

Hi slowachiever,A good starting point are magazines like 'Australian Property Investor' which is published monthly and has growth rates and yields by suburb at the back of the magazine. Quite a few of our customers  (who are all property investors) read these. 

Hi Terry,I know of two cases in NSW where someone who was owed money by the owner of a property has gone and lodged a caveat. Neither of these two people were related to the owner or had an 'equitable interest'. One had a contract signed by a deceased relative of the property owner committing to investing funds in a business, the other was owed a…[Read more]

The best time to have a valuation done (subject to all the comments above and the banks willingness to do it), is when your property is looking it's best, which is right after the reno. So make sure you have completely finished the renovation (and don't have little bits here and there still to be done) and cleared out all the rubbish, tools, etc f…[Read more]

Hi Jason,In case that you don't move back in and just keep renting out the unit, there is the following to consider. As the current valuation will be used as the base for calculating capital growth from now until you sell the property one day (if you do so), you should try to get the highest valuation possible now. This could mean getting a c…[Read more]

Hi MrProperty.We provide listings on realestate.com.au as part of our rental package. You also get an ad on domain, and a number of other services for $199. Feel free to message me if you need more information 

Hi Kelly,Have they just offered you what you are currently asking for the property – $450k? In any normal option deal, the offer should be well above the current asking price to compensate the seller for the time until settlement, which is usually at least 12 months. I would think if these guys were serious, they would have to offer you at least $…[Read more]

Hi Ben + Mina,in principle, yes that is how it would work, but you would have to check with your bank whether they charge any fees for this or if there is a minimum re-payment amount, although that is unlikely. You would, however, incur costs for changing your existing PI loan to IO, so it is better to do this when you set up your mortgage in t…[Read more]

A property manager is not going to be 2-3%. It is more likely to be 5 – 7% of your gross rent depending on where the property is located. The letting fee is usually 1 to 2 weeks rent, plus advertising costs.  

Hi grantos_champos,in a nutshell, an IO loan gives you more flexibility. You can still make extra payments and pay down your principal, but you don't have to, like you do on a PI loan.

Hi Cathy,you really need to talk to the Council to work out how long sub-diving would take, how much it would cost and if 4 or 5 blocks is even feasible. Every council has different requirements in terms of minimum block size, how much of a block has to be put aside for the driveway (for your battle axe block) and any other requirements they have…[Read more]