It seems that you are able to get the third IP, but that being said it all happens with how comfortable you are with the extra debt. I know some people do not like the extra stress that comes with extra debt, other people do not see it as a risk and are comfortable to take it on knowing the tax benefits and believe the capital gains will make it a…[Read more]

Renel,

A simple spreadsheet willl be able to let you work out all the financial aspects of a project.

But at the end of the day, it is more important to be able to calculate exactly what the expenses will be, and be as realistic as possible with your expectations.

Once you know what all your costs will be, because keep in mind there are a lot…[Read more]

It sounds like a typical negative gearing investors attitude to making wealth, spend a large amount of money on some property, use up all their own disposable income to cover the interest repayments, and just hope that capital gains will make them a lot of money.

Seeing as they had to use the mum’s house as collateral, I assume they do not have…[Read more]

We started a blog to basically detail all the experiences we have with our investing, so far we have been focused on the US side of investing, we try and help people to learn from our experiences.

Feel free to look at our blog, the link is in our signature

We started a blog to basically detail all the experiences we have with our investing, so far we have been focused on the US side of investing, we try and help people to learn from our experiences.

Feel free to look at our blog, the link is in our signature

Agree with the above post,If you plan on using the first property as your PPOR, then it will making sure you purchase a property that suits your family, both currently and probably what it will be like in the next 5-10 years as well. If your first property will be an investment, then just look at the potential numbers, see if you can get this…[Read more]

I am definitely trying to obtain finance to purchase over in the US. Already have one property paid for in savings, but would prefer to be able to use leverage and use a loan.Unfortunately I have found it is almost impossible to obtain traditional finance in the US, as I am sure you are well of. Personal loans are definitely an option, but the…[Read more]

That is pretty neat, consolidates all the real estate websites into one location, and I like the idea of showing the map so you can get a good perspective of how far away certain things are like train stations, schools and shops etc.Also good if for instance you know you should avoid anything north of a particular street for example, knowing it is…[Read more]

Your initial post had the rent increase from $330 to $350, and then later on you say it increases by $80 per week?Taking the lower number of $20 per week I would still say it is worth it. It may take an extra 6 years to redeem the added income in rent terms, but the overall value of the property should rise by at least $6,500, so essentially you…[Read more]

It is like any real investment, the higher the return, the higher the risk. Unfortunately figures can get a bit exaggerated when talking about some of these properties.I mean sure a property that sells for $30,000 can rent out for $600 per month. So now you can go and say it has a 24% gross yield. But then there is the issue of bad tenants that…[Read more]

Hi WorldInvestor,I had a look into the information on the Pilbara region, experts seem to suggest up to 50 years of supply left in the region. I guess this is dependent on the increase of technology to mine the areas. And also on the demand generated by the world.There are a lot of factors involved, and I admit my assumption of 20 years was…[Read more]

I have always been interested in mining property, I have seen a lot of people make a lot of money getting into the property BEFORE the rents become outrageously high. But from what I can gather, there just does not seem to be a long term potential.Looking at your situation, $600k mortgage, 7% interest rate means $42,000 in interest only repayments…[Read more]

This sort of property would most likely still be negatively geared for a couple of years, however it would seem it should only be maybe a couple of hundred a month at most, and I assume you would be able to cover this expense fairly comfortably.Renovations are definitely a good way to be able to get access to instant equity, and also a reason to…[Read more]

I was recently approached by someone representing this company – http://loansusa.com.au/Essentially they specialise in providing finance for Australians to purchase US property. I have not gone into any details with them and have only accessed the information they provide on their webpage.Looking at their examples they have provided, they seem to…[Read more]

Can't say I have ever heard of 'Price-to-Rent Ratio' before, but I do not see how it is any different to yield? Where the rent divided by the home value is expressed as a percentage. Essentially the inverse of what the price to rent ratio tells you.Yields tend to increase, (or price to rent ratios tend to decrease) the lower the value of the…[Read more]

Alex,Thanks for the kind words, the  blog is s till in it's early days, hopefully over time we can populate it with more useful information when we have more experiences to share.Jay,I see your point. Our agent was saying she was having great difficultly obtaining finance due to not having an SSN. I guess this ties in with your reasoning, she is o…[Read more]

Thank you above for all your help and assitance. I talked to my property manager and she basically echoed what you have said above, that it is impossible to be able to obtain finance for a foreign investor. The only solution she suggested was to obtain a credit card with the bank account, and by doing so, build a credit rating over a year or so,…[Read more]

Thanks for the information Jay,I understand not being able to finance properties for under $100k, and we were not looking at doing this, we were going to be looking at more the $150k and higher end of the market. The only reason we bought the first property for $50k was because that was all we had to invest, and we wanted to limit our risk with…[Read more]

Also does anyone have any recommendations on how to mitigate the risk of having a loan overseas? I remember when we did have a US bank account, we ran into an issue where we were only told by a letter in the mail that they were closing our account 7 days from the date of the letter. Since the letter took 20 days to arrive, by the time we knew, it…[Read more]

You should only put an offer in for what you are comfortable paying. If that is the original offer, then by all means just submit an offer at that rate. The worst they can do is say no? And I bet every successful property investor has had more offeres rejected than accepted, I know I certainly have (but I am definitely not successful!…yet)