Thanks.

If it were to be removed, would the effects happen at a portfolio or individual level?  What happened last time?

Hi,

I'm also looking at setting up a trust. Primary reasons are allow us to divert income to the lower income earner in the future (perhaps when we have more passive income and one can invest full time), asset protection and to be able to pass money in to the kids efficiently.

I have recently been advised by my buyers agent that I will not be…[Read more]

Some great comments here.  I'm looking at getting a four bedder and converting it to an 8 bedder  and renting to students on separate leases – I am told this will make the property a boarding house whether I like it or not.

I am interested to know:
 – what extra obligations I will take on as it's a boarding house?
 – more on the extra time…[Read more]

Hi Michael,Thanks for your detailed response.  The place ticks boxes 2-7.Just want to check box number 1.  It's 48 sqm.  You're saying that should sell for $216K?Note it has a balcony (added to the 48 sqm) and a car space.Cheers,

Hi,Thanks for the extra comment.  The debate continues…It's in Forest Lodge (adjacent to Glebe).A few of you have said location is the driver, but also referred to "CBD" which I guess Forest Lodge is not.

Thanks very much.So in summary two of you have said cap growth will be an issueOne liked the higher yields and said rentability was not an issue.Yield is just over 5%.  Not sure that's enough to make up for the lack of growth.Cheers all,

Hi all,Any idea what sort of rental returns to expect in Gladstone? Or is this just a capital growth play?  Will the big companies be paying the rent for their employees like in Moranbah for instance?What sort of risk profile do the banks attribute to this area?Thanks in advance.  Great posts so far.

Hi Finderscrossed  and Daedalus,Congrats on getting your rent increases.Are you guys using one of the big management agencies in the area?

Hi Steve,Thanks for the heads up.Any idea how far rents and prices could drop?I've got one in Moranbah in the Bowen Basin. Rent is currently $1300 p/w.  I could sustain $700 at current interest rates.There's already lot's for sale on Realestate.com.au and has been for past few months.  Very few houses made it as far as the website during Q1,2 a…[Read more]

Thanks Rob.How would I go about checking for "small stock piles,reduced shift hours,poor up keep"

Hi all,Good to see lot's of positive comments on the Bowen area.  I bought in Moranbah about 6 or 8 weeks ago.i must admit I have been a bit concerned since then given what has been happening in the financial markets.  I have been reading opinions saying that a slowdown would reduce the demand for steel, and then for coking coal (used for mak…[Read more]

Hi again,Fingers crossed – thanks very much for that.  It's comforting to hear that someone else is in the same boat, and looking at this in a similar way.  I would be interested to hear how your thinking develops.  I'll keep checking in with my thoughts.ErikH – I had heard that there was gas near Moranbah.  A quick search yielded this:  http://www…[Read more]

Must admit that one confused me Scamp.  Just looks like a straight 30% margin gain.  Reduced demand for steel caused by a recession could be a worry though (lots of coal gets used in making steel).  Still, 80%+ of our energy generation comes from burning coal (unfortunately), and China still seems to have an insatiable appetite – no doubt en…[Read more]

Thanks to all who have replied so far.I was thinking of mentioning your name Scamp when baiting the criticism, but thought it wouldn't be necessary given your other posts.  I do value your opinion actually, and see others have agreed with you on a number of occasions.  If you could take a moment to elaborate on exactly why you think I am going t…[Read more]

Sorry I don't now the answer RE NZ property.I have been trying to find out for Aus though.  All the banks have been saying I need to receive the bulk of my income from the foreign currency.Have you found a way around that?

Thanks.  So it would be prudent to model using inflation?