That sucks, Carlin. Whilst the agent may well have acted within the law, I believe that what he and the vendors have done was unethical. You should, at the very least, have been given the opportunity to match his offer.  I can't believe the vendors didn't give you that chance, given that this buyer has already caused them a lot of heartache. If I…[Read more]

SNM, the property is actually residential with a permission for multi-tenancy (material change of use approval), but no obligation to leave in current configuration (which is actually luxury student accommodation, not budget accommodation for the "otherwise homeless") and it has previously been a family home (albeit a very large one, with 16…[Read more]

Good morning, SNM. The building was fully refurbished prior to the revaluation and was the reason for it; I wanted to pull out some of the money I'd ploughed in. It had new plumbing, new wiring, repaint throughout, new flooring, new kitchens and bathrooms – just the walls still standing really! Leases are only 6 months but this is standard in t…[Read more]

Thank God, I've not yet had to deal with Centrelink and I hope I never do! These paradoxes of logic would just totally "do my head in" and I think I'd end up speaking "less than politely" to somebody….Good on you, duckster, for freeing yourself from this cycle.Jasmin, I don't know how much benefit you're receiving, but if you have some…[Read more]

I hear what you're saying about not listening to agent's hype; my assessment is based, among other things, on having had an offer on the table recently of $1.62M. But I don't want to sell! I feel this property will be a great "core asset" in our portfolio.I'd also point out that the lender did lend me 85% LVR of a valuation a bit higher than $…[Read more]

9ball, you can only get rid of your non-deductible debt by paying it down with after-tax dollars (ie your savings). If you take out a loan to pay it off, then you've simply changed which asset secures your non-deductible debt!The factor which determines whether a loan's interest is tax deductible is always the PURPOSE of the loan funds, rather t…[Read more]

No, debden, she definitely wouldn't pay CGT on the $200K!What Thomas is saying is that if she sells the property within 2 years of her mother's death, there is no CGT payable, regardless of whether it's rented out now or not.If she holds it for longer than 2 years, she'd only pay CGT on 50% of the increase in value from the date of death, ie on…[Read more]

I think it's much more important to maintain the big picture and make wise investment decisions than to focus too much on interest rates. If an interest rate rise of up to 1 or even 2 % is going to financially devastate you, then perhaps you're in too deep, or have chosen a bad investment. The quoted 0.3% interest rate rise is tax deductible, me…[Read more]

Hi, RisingStar! Just a cautionary note: I'm a little concerned that perhaps you're overly focused on tax benefits. Many people seem to think that a dollar "from the government" is worth ten dollars from any other source! And your questions lead me to suspect that you are in danger of falling into this distorted way of thinking.You should always ma…[Read more]

Welcome home, Hasina!Firstly, talk to a mortgage broker re loans. With so much equity, if you have an in-demand well-paying profession (eg engineer, doctor, etc), I'm confident that you could find some lender willing to take you on.You can have a PPR and the benefits of negative gearing by buying a PPR in the name of a Trust and renting from the T…[Read more]

In QLD the deposit is whatever you can negotiate; it's part of your offer. I have bought on as little as $500 deposit. Of course, when I'm selling, nobody gets away with that! ; )Warmest regards, Tracey

Hey, discostu, $40K would have me seriously considered getting the work done offshore. Do a google search on "dental tourism". There are Australian-based companies who can organise overseas dental work at huge savings, usually in Malaysia, Thailand, India, The Philippines, etc. Of course Aussie dentists don't approve of this, but hey, I'd…[Read more]

Tee hee, SHales, I think you encountered the same "guru" that I did… https://www.propertyinvesting.com/forums/community/opinionated/18815?&page=12#comment-164658Now, regards your dilemma about whether to buy a boat now. How about HIRING a boat for family vacations? Then you get the use of the boat when you want it, without sinking capital into…[Read more]

I don't think it's fair to say that commercial property is inherently riskier; it's all a matter of what you're comfortable with. Education and preparation can ameliorate risk!If you have commercial property with a long-term lease in place, I'd argue it's a less risky investment than residential, and more straightforward. It's much more "set and…[Read more]

If you're young, have few obligations, and a reasonable income – which it sounds like is your situation – I'm all for being aggressive. I'd refinance to 95% LVR and look at mortgage insurance as an expense of greater exposure to the market. LMI for 95% of $200K costs you around $3K in order to gain access to an extra $30K – $3K = $27K. If you u…[Read more]

Aw, shucks, thanks Sean, for your kind words Regards,Tracey

Hi Matt! Personally, I prefer homes to apartments as investments. Not so much for the difference in capital growth – which does exist but isn't that huge a deal – but because I like to have more freedom over my investment eg no body corporate! Apartments generally do have higher yields, but as Marc pointed out, this is quickly eaten up by the…[Read more]

I'd also suggest signing up for as many free property investing newsletters as you can – yes, they contain marketing material, but they also do contain useful information, or even if they contain information you disagree with, it forces you to clarify your reasoning for your opinions.I like the ones by Residex, Metropole, Investors Direct,…[Read more]

Good morning, Jimmy. Your tenants are obligated to pay rent for the duration of the notice period, though whether they'll do so is obviously questionable. It's definitely a good idea to have this as part of your negotiation strategy as you outlined. And I have no personal experience with debt collectors but doubt it would be worthwhile in this…[Read more]

Hi Del! You contact somebody privately by clicking on their name above a post, viewing their profile, and then hitting "Contact". Unfortunately, you have your options set so this is disabled, anyway, so I can't contact you privately. (Edit your profile if you want to change this.)Now, refinancing 101. You buy a house worth, say, $100K with $80K…[Read more]