One person’s excess bedrooms is another’s home office, media room, dark room, hobby room, guest accomodation, storage room, parent sanctuary…

4 bedroom houses will always have a demand even if you have to re-label them as 2 bedroom + home theatre + study… It’s the size and space that attract money, it’s the exchange of abstract resource for…[Read more]

Hi,
Personally I’m not a big fan of putting my property up as security for other people. There is an old adage that says never lend to friends and family. I have ignored that in the past and it has only added friction to the relationship.

In my personal belief the first step to being an investor is being a saver. To be able to maintain the…[Read more]

Hi,
The advantage to what you have mentioned is that because it will be your PPOR, if you decide to sell rather than rent out it will be CGT free. Plus if you sell it to move to another house you may be able to claim stamp duty savings.

Also you are in a good position to do due dilligence. You live there so you can inspect all you like. The…[Read more]

Hi Ron B.
While I don’t do it myself the theory is such that you can do it in any type of market. What counts is the amount of research you do beforehand and being able to create more value than you spend.

There is another strategy in the renovate game: Buy, renovate and hold. In this way you buy a place earning less rent than is typical for…[Read more]

Hi,
The easiest way to find out if it is fair is to raise the rent to whatever you want and see how hard the tenent complains. If you are worried $15 / week is too much; write a letter saying you are raising rent by $25/week. If no complaints then congratulations you picked the right number. If there is a complaint then drop the increase to…[Read more]

Hi,
The FHOG is available on a per household basis more than on a per person basis (in it’s spirit). As you are already engaged to get married I think the gov will view you as being a household and as such only able to get one FHOG. After all the grant is so you can buy your first “home” not so you can invest in property. Trust me, there is a…[Read more]

Hi,
It seems to me that the first investments starters look at (myself included) are:
1. Caravan parks
2. Serviced apartments
3. Hotel apartments
4. Student accomodation
5. Nursing homes

The common theme to all of these is just what Ron Burgundy stated: strong rental returns (neutrally geared) with no capital growth.

I guess a basic search on…[Read more]

Hi,

Now: 30 (well 29 and 9 months, but close enough)
Retired: 35
Financially free: 45

Definitions:
Retired in my books = not working for “the man”. I’d still be doing things for money as at that point I would still need money, but it would be more on my terms.
Financially free = Doing things and if money results then so be it, but it wouldn’t…[Read more]

Hi,
While everyone who has answered above is correct, I will answer in the general case.

In general, all other things being equal land apreciates in value while buildings depreciate. That means houses, with thier sole control over a relatively large block of land will provide a stronger long term investment. Given a flat and a house at the same…[Read more]

Hi,
My personal preference would be to skip this deal as I know I’d get a bit too passionate about justice and people trying to cheat other people and so on. I’d end up getting a survey done then knocking their fence down and building it on the real property line. If their house fell into my yard I’d write a nice little letter that told them to…[Read more]

Actually I have similar trouble when people ask what I do. I’m still working full time for someone else as a computer programmer but if I get too specific it opens up all sorts of conversations I don’t want to have (for a variety of reasons). So I reply: “I’m a computer nerd.” and i leave it at that. Usually thats all that’s required. Any…[Read more]

Hi,
Personally I think it is a different thing building your own home and building someone else’s home (IP). I’m getting an IP built by Devine and so far so good. The price is low and the quality for that price is fairly good (they build so many of the same design they’ve worked out most of the bugs). However I doubt I’d ever engage them to…[Read more]

Hi,
A big question with no small answer. I’ll point out a few things to get your juices flowing.

– Budget. You need to know how much you can spend, how much you want to spend and what your required profit is.
– Land use / zoning. You’ll need to get copies of the title certificate, land rates notices and council permits / easments. That way…[Read more]

The deposit has nothing (or at least very little) to do with compensation. The deposit is required to make a contract. Contracts must:
– State who is bound by the contract.
– What is being offered
– What the consideration is. (money in return usually)
– Clauses describing the delivery
– Clauses describing the commencment
– Clauses describing the…[Read more]

Hi,
The situation described sounds like guarantors having their property sold when offered up as collateral for another’s property. In that case, if the sale of the property for which you’ve gone guarantor doesn’t satisfy the loan requirements (LVR for example) then either additional cash will need to be put in or the other property can be sold.…[Read more]

I’ve had a friend say with some scorn: “Well I guess we have very different ideas about money.” This after I demonstrated using a spreadsheet that he could buy his dream car in a couple of years and still have money left over for a holiday or plasma TV without debt rather than take out a $30,000 personal loan now. I was rather dumb-struck and…[Read more]

http://www.thecouriermail.news.com.au/common/story_page/0,5936,15630898%255E462,00.html

Try that link.

Hi,
I bought just recently in WA (a couple months ago). Being in VIC I hadn’t even seen the place in person and didn’t meet the REA involved. I used faxed documents to buy the land, no worries. Actually I made the offer over the phone and was given a verbal agreement (one I was made aware meant nothing until a signed contract was exchanged).…[Read more]

If all around is industrial / commercial and you’ve got 10 acres of liesure / entertainment… How about a homewares / liesure display centre. 4 wheel drive course, bike track, big fat pond for boats, display home type set ups. Get big company builders / car manufacturers / boating cos + tourism companies/resorts to basically pay for a great…[Read more]

Hi,
Interesting read.

However it does seem to miss out a few points.
1. If everyone has stopped buying houses, where do they live? They must be renting = house value may have dropped (ie no-one buying) but rental yield goes up (everyone renting). Does that make it bad for investors?
2. If people are moving out of houses to go where there is more…[Read more]