Hello people!I will tell you the reason!!!!!The west is flat and has a lot of estates that do not have outstanding features that people will pay more to live near. Except – williamstown, Altona, etc they have beach and closer to city.The same reason the places in the East or North have lower values – Cranbourne, Dandenong or Thomastown for…[Read more]

Hey Reno,there has been a previous post on Frankston you can look at if you search it.The general consensis is that the properties will increase in value especially when the freeway is finished.  Rental yields are low which is keeping some investors away at the moment. Apparently what I can make out is that there will be a gradual slow climb over…[Read more]

Hi Nucopia,You have a good pos cash flow portfolio there! Good work.Property 1. Home paid $142k valued $350k owe $118k (originally paid $80k but did extension)Property 2. Cairns paid $80k, valued $140k get $150 per week rentProperty 3 Kalgoorlie paid $136k, valued $230k get $270 per week rentProperty 4 Deception bay paid $180k valued $220k get…[Read more]

Hallo Kate,It does sound like you have had a spot of hard luck or have you?I wonder in which area you are looking for these properties? They sound very run down to me? Maybe you need to change your perspective on where you are looking/ price range?As far as it goes with the house you purchased – you are giving contractual obligations to a vendor…[Read more]

Hi Lyndon,You are right to be worried as it seems like your parents have based the decision on these apartments being a good investment because 1) The RE Agent says so! and 2) they liked the area while visiting on holidays!The worst reasons to buy real estate!I have a 2 bedroom unit in Cairns that is currently valued at $125k, so $535k sounds a…[Read more]

Hi Abee,I looked at that option 4 years back and even read his free book which I found a new learning experience and great read.I decided 4k was a big amount and went on to do it myself and now have properties and shares and still buying! Personally I think SELF EDUCATION is the key, there are so many resources and information out there, you just…[Read more]

Hey Fishman,Your point B can be accurate, you do not need to wait until the end of the financial year to recieve your money back, just fill out a tax witholding payment form at the ATO and you can get that tax back week by week in your pay. This is a strategy most people use when growing a portfolio.However, you need to be careful with your…[Read more]

Hi Devo,Yes you are correct – based on the information you have given them, they have worked out that you only need to pay %15 tax after your expenses are taken in to consideration.  Therefore – the current gross income (pre tax) you receive every week will have %15 tax taken out of it instead of what you were previously paying (maybe around…[Read more]

If you want long term growth, I would look at Frankston, it is getting a tidy up at the moment and is at the end of eastlink.

I was really excited a long time ago when I first read the Kyosaki strategy about deferring Cap gains tax. I quickly contacted my accountant who told me we cant do that in Aus! Bugger!Anyway, forget about that and move on to other strategies…

Does this mean that my Deception Bay property is going to go up..Flow on effect?? hope so… hehe

Hi Milly,Yes it all sounds good when they put it together in a 5 minute story! There are some parts of the building process that need to be left to the professionals, especially electricals! You cannot finish off a building without certiain certificates anyway and also not sure how council or insurance would cover you.You can still become an owner…[Read more]

Safe to stick to 15,000 or above permanent population and/or increasing pop growth, you can usually find this out by checking the local council. Having said that, people have found properties in that price range that are cash flow positive in smaller towns. I think for a novice though you may want to minimize your risk, so go with bigger towns.…[Read more]

Hey Nick,
I have found Margaret Lomas books invaluable when purchasing. There is one called pocket guide to positive cash flow investing, which has step by step notes on the buying/searching process and what questions to ask. I think you can buy them on her website destiny.net.au. Her strategy is pos cash flow and cap growth.
happy reading

TD

I agree with Marc,
either offer a very low price or walk away and start looking again.
A steep driveway could deter future tenants. I have one and its a bugger to move furniture.
Maybe thats why the current tenants are still there!

TD

Hi all,
Thanks for the feedback!
I have decided to hold for another 12 months and increase the rent $10 per week with the current tenants.
This will make yield on purchase price %9.1 which is excellent.
I will re-evaluate in 12 months time and see what it is worth, if it does increase to what is expected, it will be well worth it.
cheers!

TD

On a lighter note, I bought at Deception bay last year and they could do with some DECENT AGENTS! So , go for it! I think that area will run hot for a while, so you should be able to make some good commission!
I considered getting into property management years ago because I love property, but after careful consideration I decided that I love…[Read more]

Have you thought of extending the house and staying where you are? This would be a cheaper option and has worked for us. If you work it well, you can even make money, but that depends if you want to stay in that area or not and also if the house is suitable for extending of course.
You can save on stamp duty and other moving costs this…[Read more]

It says that Neilson researched 6000 people to get that result?
I hear a lot of people that say they will buy an investment property ‘next year’ but dont…..
Anyway, Im sure the other banking institutions will jump on to these stats and start advertising them to try to convince novice investors to buy!

TD

Ronulas,
This method is called line of credit and most banks do it. I have a similar set up with ANZ.
Having an investment property yourself, I am sure you will have the confidence about controlling your spending, which is required to managing a successful portfolio anyway.
Speak to your existing bank about this set up and I am sure they will be…[Read more]