I say you should know your borrowing capacity first, so it helps you to realize what kind of deal you can do. eg: if your borrowing capacity is only 400K, then for most part (there are exceptions), there is no point of looking for deals that would require you to get an 800K loan.

Once this is sorted out,then always find a good deal first (not…[Read more]

OK, Can I just download a generic loan document template (there are plenty online), and get both sides to sign it upon both sides happy with the content?

Ahhhh.. I see

I think that clears up my questions.

Regarding to loan document, who can give me advise on that? Accountant or Lawyer? If Lawyer, what sort of Lawyer I should go to?

I am not sure when it comes to the time for the trust to return those cash to my personal account, is ATO going to see this as “oh, that’s a huge amount of income this year, so pay income tax please”.

Regarding to gift vs loan… essentially I am “lending” (if this is even the right term to use) money to my family (in the form of a family trust),…[Read more]

Probably still put down a few hundred each year for maintenance.

If it is a brand new property or one that you renovated yourself, then you should be pretty well covered.

If it is a tired old property then expect things to break here and there once in a while.

It is not “whether or not things will break”, but rather “when things will…[Read more]

You mean it is not just the new loan application that they will use 7%…

Even the loans that were already approved at 4%, they will treat that as 7% as well?

Another rule of thumb is “you make the money when you buy”.

You don’t “buy something to lose money and hope to make money in a few years”. You need to make sure before you even buy, what you will buy is going to be making money as soon as you buy it.

Another rule of thumb is “you make the money when you buy”.

You don’t “buy something to lose money and hope to make money in a few years”. You need to make sure before you even buy, what you will buy is already making money.

Forget it.

You are buying a solution. Stay away from them.

I actually think it is not necessarily the product itself that is the problem, but the fact that you are being educated in what you are doing.

I don’t suppose most of those groups are willing to teach you how to do research, how to make sure the numbers stack up, how to perform negotiations, etc…

To share my experience. Sometime early last…[Read more]

I can’t say about other cities, but in the city where I am looking at (Dunedin), for every property, there is this thing called a LIM report.

It basically outlines anything and everything, including: property rates details, land details, site hazard details, drainage points, environment information, land zoning details, past approved consent to…[Read more]

Thanks Benny for the reply. I did some more investigation in this regard.

The property is actually in New Zealand, but I thought similar concept should apply.

After talking to a few agents, I was told basically the local council put this phrase on literally every property’s report and it looks like the council put down this as a “blanket to…[Read more]

Thanks Terry.

Between Option 1 and 2, would Option 2 be normally preferred (unless interest rate for the “second loan” is much higher)?

Option 3 would be good, but doesn’t look like I am in a good position to do so until after I get a pay raise.

Cheers
Steven

The way I described though, won’t work very well in Melbourne or Sydney (or maybe even Brisbane) metro area for the matter.

I mean, if property values are well above 1M and you only get 400-500 per week rental income, then it is impossible to get positive cash flow even if we do buy below market value.

It will probably work in regional cities…[Read more]

One thing to mention though is the above example is a simplistic view.

There are many other factors to take into consideration.

Certain area are good for buy and sell, certain areas are good for buy and let, and certain area are good for multi-let (more common in UK than in Australia… Aussies are not big fans of multi-let for some…[Read more]

I personally don’t like the idea of relying on “growth”. Maybe I am just being paranoid… the way I see it is you never know when the market will go through a correction (or in some cases a sharp correction).

Historically there has been a few times that the market crashed when everybody (including experts) think “now is the best time, it is…[Read more]

I recall reading from one of the books or articles (can’t remember specifically where) that Steve significantly started to invest less in Victoria (or was it the whole of Australia?) because what he did in Ballarat years ago, stopped working for him….

I think that’s where buy from motivated sellers below market value is the key I suppose, as…[Read more]