Asset values are based on several factors but sustainability of the income stream is extremely important – hence market value equates to the value based on achieving the market returns not some inflated amount (eg unwilling tenant tied into an above market rent).

I use Austbrokers – Deanne Cawthorne. She's based in Baulkham Hills but they have a couple of other offices around Sydney.

You will need two different valuers – one in each state as it is a state based registration system.

Real estate agents don't value, they put forward an opinion (unless they are qualified valuers & provide a paid valuation for you).

Hi Michael,

it is not always an option to have a vacant house/unit for a photoshoot – especially for a rental. Waiting out the last few weeks, then getting the photos done and uploaded to the web and then doing the opens costs the owner/investor weeks of lost rent.

It is also rare for an owner to fork out $ for photos & a floor plan for a rental – I try to keep one from previous sales/RPD etc. The return on investment is simply not there on a rental.

I don't need life insurance, it doesn't go to me anyway.

that is a serious problem for you and your family. Have you looked at refinancing his loan? Why is the property so heavily negative? Is it possible that the rent is so far below market? Can your father use the negative gearing losses?

Selling may be one solution but not necessarily the best one.

why settle for one or the other?

The flat suits your lifestyle today, the land for the future.

Between them they’re $500k, you can use the fhog to most effect on the flat which will have the least interest and be non-deductible until you move out.

The house will generate an income and can be used to support the loan.

If you buy both, you’ve started investing and will have your own place.

Consider the returns and whether you can afford to take up 2 loans.

With 50km out of Sydney, you may be hard pushed to see any capital gains. You'd be looking at Campbelltown, the other side of Penrith or Wyong. Much of the areas closer to Sydney (western suburbs) have bolted but it would largely depend upon your budget and the type of property that you are considering.

Just one (maybe two) words of warning.

The AUD is at a 3 year low. If you buy now, you are paying more than you otherwise would if the AUD appreciates again (likewise you will lose money unless your new assets appreciate at a greater rate than the AUD devalues against the USD. (Ignore this if you brought your money to the US when it was sitting above parity). Indications from reserve bank are they want to see AUD sitting between $0.85-$0.90 US).

If you advise the agent that you want to buy the unit, there may be some provision in the managing agency agreement which makes them entitled to a commission as they have introduced the buyer to the owner (yes, there are such clauses).

Do you want to buy the unit because it is a good investment, 'it seemed like a good idea at the time', or just because you like the place and want to continue living there? There may be several other units in the same price range which will make better investments.