There are some great deals in Canberra…
http://www.allhomes.com.au is the starting point…

I recently saw a medical centre sell for $100K…
The rent was for $250 per WEEK… the catch was the commercial side..the body corporate was $1000 a qtr… but still great return.

I made $60K from an off the plan purchase in gungahlin last year…
I intend to…[Read more]

Hi Deb…

Just an opinion:
I think it all comes down to “what do you want out of this?”….

Are you doing the renovations with the intention to sell (for cap growth with no CGT as it is your PPOR) or is it more of a lifestyle choice … ie. for family?

I suppose a lot of people on this website focus on cash flow…
so they would ask the…[Read more]

Refinance?

“There is nothing scarier than ignorance in action”

Keep saving…
Keep researching… read all the books you can on investing…
Don’t worry about “missing the boat”…

Overtime you will learn that a true investor can make money in ANY market.

Just for now keep saving… into Bank West or ING is a good start…
You’re in a great position… Keep it going…
Enjoying getting richer every week.

Hi Camel,

To clarify… (using your figures)
The 10% rule is basically worked out like this:

ANNUAL RENT
DIVIDED BY
COST OF THE HOUSE

that is. 17680 / 170,000 = 10.4 %

Therefore,
17680 / 255,500 = 6.91 %

If your question is:
“What would be a 5% investment if rent was $340pw?”
The answer would be $353,600.

Steve’s 11 second solution is a good…[Read more]

hi Ben,

You wrote:

“IP – Current Market Value: $239000
Mortgage: $130000
Current Rent: $165 (could easily be $200 – once lease runs out in May)

Second Property (current residence)
Market Value: $255000
Mortgage: $185000”

As a rule of thumb, it generally pays to pay of your PPOR first for tax reasons.
therefore, you would transfer the equity…[Read more]

How’s this for an idea.
If your agent doesn’t do it..
I will rent your unit out for $30 more and less agent fees.

Now there’s an incentive

Hi gina,

Any tenant in Sydney (especially in inner city areas)…
would be expecting a rental increase due to:

Rising interest rates, maintainance,
security costs, insurance, and inflation.

Don’t worry about the fan [biggrin]

Hi there…

You wrote:

“For example, the old original home and land might sell for around $340,000, be subdivided, then blocks appear for $180,000 each. When you add the cost of demolishing and subdivision, how are these people making any profit? Is there something I am missing?”

Going by that, I think it’s probably fair to say that $340K is…[Read more]

Hi drainosky,

Assuming financial independance is your goal…

How old are you?
Are you working? What sort of income?
Are you renting? in which area?

If you can answer these questions,
I’m sure people here will be able to help you out even more.

Cheers,

“There is nothing scarier than ignorance in action”

Dishonest, untrustworthy and good ability to tell a lie or two.
That’s what I like about real estate agents [cowboy2]

10 yrs ago it was $50K, today I think $100K+.
Ofcourse that is just the beginning for some.

“There is nothing scarier than ignorance in action”

Mate… I work for Citibank and I would recommend OzForex.

Call them on +61 2 8667 8091 … Ask for Alex Nicholas.

My strategy is to focus on cash flow and invest in the lower end of the mkt. Normally better rental returns.

Given that it sounds like a regional area (2073 sq)…
and you are already residing in the front block…
could you perhaps run a bed n breakfast from there…?
(Ofcourse it depends on tourism / holiday demand in the area)…
Just a…[Read more]

“Looking for someone who has been a flipper in the past. Looking to know how you did it, where you did it and when you did it.”

Warnie… On his first ball of this Ashes Series. [blink]

Shops, sheds, hostels, land, car parks, coke machines, car parks….

They could all be good investments if the numbers work.

Hi Paul,

All I would say is just do it.

I could give you 10 reasons to buy this summer.
I could also give you 10 reasons NOT to buy this summer.

At the end of the day, it’s really just speculation.
Be bold, be brave, be ballsy n go for gold son [cap]
I bet you could find some good deals anytime of the year.

All the best mate [biggrin]

http://www.allhomes.com.au is my one stop shop for Canberra purchases, rentals, tradies, etc…

That’s correct… just 6 mths.
In effect… you could move in on day 364 and live there for
“a continuous period of 6 months” and still be eligible for the FHOG.

happy hunting,
Anthony.

“I have looked at some statistics from the ABS.
Basically it indicated that judging by past performance from 1976… we have a few years before things will pick up in Sydney.
The last cycles were 7 years & 11 years… We are now 2 years since the last peak and counting. Having said that, it’s always good to note that these are general figures.…[Read more]