Recent API article on potential CG and CF areas highlights Whyalla as a good area to invest. I'd never heard of the area before but it does seem very promising with the Dam construction, hospital, $8bn in future projects etc. The low house median suits me fine to start off investing so will be looking into the area in more detail.

@James- what areas would you recommend between Jenkins, Norrie, Playford and Stuart?  They all seem to have have a similar median so wondering if there's much of a difference between them. I'm thinking longterm for CG and positive CF with subdivision in the future so maybe closest to the port?

If the contract specifies vacant possession then you should be ok. If not, you'll inherit the tenant and lease.
As long as they are given an adequate Notice to Vacate there shouldn't be a problem. If they refuse to leave, you can delay settlement until they do vacate. It may take a few weeks but I believe an eviction notice can eventually be served if they're being particularly stubborn.
I'm guessing they've just moved in during March so the last thing they'll want to do is to move again so soon. I would suggest being as helpful and understanding as possible, maybe even help them find a new place or offer to help with moving costs. This should hopefully soften the bad news but encourage them to acquiesce with what you want.
Just make sure to run it by your solicitor first.

Regards,
Derek

I was wondering that too as I have 6 'rewards' but no idea what they are!

The website definitely feels more interactive with the moving Activity Feed and challenges to be done. I'm just hoping the forums don't get spammed by people posting just for the sake of it as a way to get points and unlock achievements etc.

Excellent job on such a smooth implementation but would be good to have some sort of explanation for it…

Regards,
Derek

I was thinking that as I was reading the Feb issue of Y.I.P, as it seems a lot of their 'Investors of the Year' contenders and the almost monthly cover stories of everyday folk going from broke to property millionaires have made their money over the last ten years with many properties doubling in value, high yields etc. I was wondering what their success rate would be like if they were only starting their portfolio's now…

As I'll be starting my own foray into the property investing world this year, It will take a lot longer for myself and others in the same position to build up a portfolio that provides decent CG and/or a nice yield given the current uncertainties. I believe the old 'buy, reno and hold' strategy will work well in any environment and hope it does the job for me. Of course there's still plenty of opportunities to take advantage of too such as the increased number of distressed properties available (up 20% on last year apparently).

I do wonder what API and YIP magazines will be running as cover stories in a few years. Maybe something along the lines of "Read about Mr X and how he achieved 5% CG in 4 years"?!

Hi guys,

Nothing needs to be done if the gift is not related to employment as there's no gift tax in Aus.

The ATO uses its 'nexus' rule to determine the relationship between the gift and employment and whether or not it's taxable.
Eg, if you were receiving the $25k in $200 in weekly instalments, the ATO may treat this as a source of income and consider it taxable.

In your case, it's a once off payment from a friend so no tax is payable. I tried searching the the ATO website for a link to a more official source but not much luck. It would be a good idea to get something in writing regardless, always good to have some sort of 'paper trail' for the lovely people at the ATO.

Kind regards,
Derek

Is there a different link to the story? Firefox reports that it's an attack site!

What is the current listing status for http://www.sbs.com.au/dateline?

Site is listed as suspicious – visiting this website may harm your computer.

Part of this site was listed for suspicious activity 2 time(s) over the past 90 days.

What happened when Google visited this site?

Of the 84 pages that we tested on the site over the past 90 days, 54 page(s) resulted in malicious software being downloaded and installed without user consent. The last time that Google visited this site was on 2011-07-16, and the last time that suspicious content was found on this site was on 2011-07-16.

Malicious software includes 7 scripting exploit(s), 7 trojan(s). Successful infection resulted in an average of 18 new process(es) on the target machine.

Good afternoon Hawko,

It's great that you're thinking of using the money to invest in property. Personally, I would (and have) put such a large sum of money in a term deposit at the best rate for a year or so and use that time to learn as much as possible about investing in property. There's many books, forums and seminars out there that would easily fill up your time. By then you'll be far more educated and be able to make better informed decisions regarding your strategy, structuring your finances etc. Also, the interest by the end of the year on the TD would be enough to put a deposit down for a house. Thank you bank!

1. If you're single and don't have a job, I think renting a room may be a better option and use the money to buy IP's instead. Negative gearing will slowly drain your bank account as you don't have any money coming in. Of course if you do get a job and earn a high income, there are tax benefits associated with NG'ing your PPOR. There was a thread created on here about renting vs buying a PPOR but couldn't find it.

2. If you haven't bought a house in Aus before then you are eligible for FHOG but the inheritance being a property may affect this. Was the house in Aus?
Check out the discussion on Somersoft- http://www.somersoft.com/forums/archive/index.php/t-31168.html

3. Starting small is always a good idea as it will give you an idea of what goes on before, during and after buying a property and  mitigates risk associated with larger deals in capital cities. It's a lot of work and requires a lot of effort. It also depends on  what your portfolio strategy is and what outcome you are looking for from property investing. Buying rural may produce neutral or positive cashflow (especially as you can put down larger deposits) but historically, it is slow to gain much CG. There are also reno's, flips, vendor financing etc that are good ways to get into the proeprty market and these can be done in any market.

I would highly recommend any books by Steve McKnight, Michael Yardney, Dolph DeRoos and Margaret Lomas just to get you started. And of course, reading through websites like this on a daily basis helps greatly.

https://www.propertyinvesting.com/forums/property-investing/help-needed/4337228?highlight=rent%2Cvs%2Cbuy

Best of luck with the future decisions,

Derek

Try and find out what past CG in the area has been and compare it with other relatable suburbs. If you can go back as far as 20 years, it would give you a better overall idea of the areas potential. The local council should be able to provide some good information on past performance. An educated buy in a 'well located' area should prove itself over the years as a good IP.

The best thing to do is check the data in the back of any Australian Property Investor magazine as it's quite comprehensive. There's plenty of data online too of course, although you are usually charged for this information.

Here's a list for CG suburubs Australia-wide- http://www.smartcompany.com.au/construction-and-engineering/the-top-50-growth-suburbs.html. Did find some for Sydney but at a cost of $215 etc.

I have heard that the inner west is a good place to be investing as infrastructure development, residential land re-zoning, Gov spending and population are all on the increase in years to come. Plus house prices are a bit more affordable so it would be a good place to start.

Good luck!

Regards,

Derek

Hi Dalefro,

Any luck getting a copy of Marty's Blueprint? Admin said there's no plans to sell it again any time soon which is a shame as I'd love to learn his methods.

Regards,
Derek