You’re getting 4.5% + Capital Gains. Sounds a bit better than sitting in a bank for 4-5 years.
If its overpriced, and you’re not in it for the long term, yeah sell. But if you are in for the long term, (and assuming that you do have equity in the places, why not borrow as much as you can on these overpriced properties and buy what it is that you…[Read more]

If you are planning to purchase a new home and you can afford to hold onto the existing house, hold onto it. There is no point paying the selling costs and purchase costs of a new IP.
If you currently live in an area that will rent ok, then hang onto it.
If you are going to go down this path and are currently paying Principal and Interest on your…[Read more]

I’m not going to answer the question, however here is a link to a good booklet which does cover the issue.
Those first homeowner considering renting for the first 12 month and then moving in, there are advantages to using this 6 year exemption on PPR by moving in yourself first, and then renting out…[Read more]

If there is a time in your life to have a pool of your own, it’s probably now, when the kids are at the age when they will use it. It beat having kids sit in front of the TV.
I had a pool pretty much all my childhood, and if I wasn’t down the bush, I was in the pool. It was my chore to clean the pool, no point giving pocket money for no reason at…[Read more]

If you intend to find a place that maybe needs some work and you intend to be involved in that work, then by all means buy somewhere nearby.

If you are only buying locally because you would like to be able to keep an eye on the place and worry about tenants. Don’t buy locally. That’s why you pay a PM to worry about the property and the tenant.…[Read more]

Aussie have this link that allows you to get medium and quartile prices for postcodes within NSW, VIC & QLD for the past 5 years for free upto 5 times a month (for each email addres you have).
http://www.eaussie.com.au/aussie_valuer.htm

Mal

Getting out of your comfort zone, can help you become comfortable

Just a note on the cost of eradication of a termite infestation. I noticed with my first venture into WA market that the cost of eradication is the responsibility of the Seller.
Some areas are prone to termites, and it’s simply a cost that you should factor in, to have periodic treatment or inspections.
Where I live in the South of Sydney, there…[Read more]

There are a couple of good articles in the August Australian Property Investor magazine that address two issues raised above. The first “The Price of Defaulting”, compares the termination conditions of a Contract of Sale between all states. The other “Land Tax Update”, has all the States latest thresholds and land tax rates.

Mal

Getting out of…[Read more]