very cute!!!! Did I count correctly? 10 puppies!!!

Hi Talisman,

Please message me if you are still looking as I dont seem to be able to message you. I am in NSW and have a DB. I am away until Sat though.
Cheers
Tammy

Is there any particular reason why you dont complete the subdivision first? Sorry for such an obvious question!
T

Kleenmaid have a 5 year warrenty. I have just had mine 3.5 years and have recieved an offer to extend the warrenty for a further 5 years. I will include these documents when selling and would ask for them when buying. May not be still available, but you never know if you dont ask.
Cheers
Tammy

Hi Longroad,

As a starting point, have a look at the API magazine. They alternate their statistics section between sales results and rental yields. It will give you a start on the prospects of each area. Also, if you call the larger REA's and ask about their numbers on the rent roll and their vacency periods you will have some more info. Just for practice, why not call for anything advertised as a rental. Have a list of questions to ask and you should be able to join a few more dots
Possible things to ask
– how long as a rental?
– current lease details (length, type of tennant, how long have they been there)
– REAs knowledge of rentals in that area (demand, vacency rates, average prices, high and low prices, can anything be done to this property to improve the return)

Jump on google and determine if location to schools, transport, major roads, shops is determining the rental differences across a suburb. What I mean is a house on a major road will rent for less than the same house in a quiet street. Sounds obvious, but this is neccessary to know as statistics dont reveal this.

I realise you asked for an opinion on rentals in these areas, but I also note this would be your first investment. Whilst my investments are not in these areas, if you apply the above it will give you alot more confidence with an area, and at the end of the day only you have to wear a bad call.

All the best

Cheers
Tammy

FHOG – first home owners grant, generally $7K but different states may kick in a bit more (check up on latest rules), also on offer is the stamp duty exemption up to a certain $ amount, again check the current rules.

PPOR – principle place of residence, this is where you actually live, ie hang your toothbrush, not just where you intended on living. What I mean is you cant live with your parents and have an IP that you claim is your PPOR when it comes time to sell it.

LOC – line of credit, a loan to a certain amount secured against an asset, such as your PPOR. The idea being that you have access to quick funds should you find a good deal without the need to go through the time delay of application. A great tool when used cautiously, however, be aware of the temptation to use the "free" money for non essential items and thereby increasing the amount you owe on your PPOR.

Hope that helps
Tammy

Hi Jase,

Congratulations on having the finish line in sight!!! I am sure Steve's weekend will see you explode forward now.

All the best with the sale.
Cheers
Tammy (from Tamworth)

Hi Thai,

This is prefaced with "see your accountant" and I am not one. However, my understanding is that tax deductions can only be offset against an income producing asset. This would mean that as your block of land is not producing an income, you are unable to claim a deduction. I believe that the deductions are accrued againt the cost base of the property meaning that if you were to sell in the future and realise a capital gain, then all costs associated with holding that property are taken into account and added to the purchase price to change the cost base and thus reduce your eventual capital gain.

Again, check with your accountant, but I hope this helps.

Tammy

Consider the "real rent" that you will get for this house. Use this to work out your total "extra" rent and be sure that he would have added this to his asking price.
$290K rent @ 7.5% = $21750 pa roughly $40K over 2 years.
You indicate that his price is 35-40K inflated. This accounts for why. It would seem that you would be better off considering a purchase at the "right" price and leasing to a different tennant, granted at a lesser return, but comparatively a better potential combination of growth and yield.
Cheers
Tammy

Try the latest property mag out. I think it is called Property Investor and the 2nd one has only just come out. It gives all rental info, well the last one did anyway, suburb by suburb for all of Aust.
Cheers
TAmmy