When I referred to 12%, I meant that you usually have to pay approx 12% for a second mortgage or vendor finance, and I was quite happy to pay this much interest, but the vendors accepted my offer of 9%.History: yes, I started smaller, but let's say I climbed the curve pretty steeply as I gained confidence. I bought maybe 5 or 10 standard…[Read more]

Well done, Lisa. I must say I didn't think it could be done, but I'm delighted that I was wrong! Better find me a friend in my Council….

I wouldn't be without an agent. It's not because you can't arrange for repairs, sure, you can do that. But there is a lot of complicated legislation that agents have to keep on top of to ensure that everything is done properly. For the 90% of the time when everything is straightforward, yes, it's "money for jam". For the other 10% of the time,…[Read more]

salacious wrote:
But how high do you think interest rates will go?

As per my last post, I think another 0.5 or 0.75% will be about it. The 1, 3, 5, 7, and 10 year fixed rates on offer with most banks are all within 0.1%; suggesting that they're predicting very stable interest rates in the coming years.

salacious wrote:
Some investors have more…[Read more]

I may be wrong, but my understanding is that you can't require a tenant to do any garden work – either that, or it's unwise to do so in case they hurt themselves and decide to sue you. (Can't remember, the issue came up years ago.)In any case, I wouldn't have thought that garden tidying was essential work, but probably a good idea to reduce risks…[Read more]

Thank you, Boing, for your kind words.Vendor finance… look, it is difficult to get on established property, no two ways about it. (Developers are quite likely to consider vendor finance, but I prefer to buy something that I can instantly manufacture equity in, and that's usually not a new-build.) I think it's just a numbers game. I made about 1…[Read more]

I got a reply from the "serial renovator" ; her position is that she's not doing building work because she's not doing structural work. I believe that the QBSA (here in QLD) would disagree with this interpretation and consider that she's renovating illegally. And yes, in QLD I think you're obliged to provide a 6 1/2 year warranty on all…

If you can do all this work < $100K, you've gotten a bargain! People doing renos for $20K 1) aren't adding on rooms, they're probably doing cosmetic stuff, and 2) many are doing illegal renovations. In most (possibly all) states of Australia it's illegal to project manage works over a certain value – about $10K retail value, not what it would…[Read more]

nejas wrote:

trakka wrote:
Just this month I've negotiated to purchase a property with the following numbers: purchase price $600K, vendor finance $150K (25%, 9% interest payable monthly, balloon payment at 1 year), yield at settlement 9.5%.

Hey trakka I'm fairly new to the IP arena can you please explain when you talk about vendor finance,…[Read more]

I've PM'd Linar.

billybman wrote:
Renovations would would cost me between 20-30K if done handyman style. I've renovated before and and currently on my 4th, so do realise the mark up that is added by professional labour. In my estimate it's about 70% of the cost.

Bear in mind that doing works of this scale yourself is illegal in many states; it certainly would…[Read more]

Moosehead wrote:
From my limited experience with banks, even with a high salary, they won't lend you much more than 600-700k total because of serviceability.

We have approx $2.5M in full-doc loans and can get at least $1M more.

Thank you all for your opinions, and for realising that despite my skepticism, I was sincere in my query. I don't think one of these courses is for me, mainly because like Kylie I feel motivated and focused enough already. But I now see that some of the more "cult-like" behaviour, and strange beliefs, that have concerned me are probably far more…[Read more]

OK, gotcha… yes I missed that

I would buy a PPR that has substantial ability to manufacture equity, inexpensively. For example, buy a dated-looking house and gradually update the paint, window treatments, get the garden looking nice – basically buy something tired and make it look fresh and loved. Then get it revalued and draw the extra equity out as a deposit for your first…[Read more]

Linar wrote:
I know that there are many organisations to subscribe to the theory of living off your equity but I have yet to come across a bank who will facilitate that for me.  Whenever I say this I get inundated with offers from mortgage brokers who assure me that they can help me out but, as I have just said, no bank has ever said to me that…[Read more]

* How long to run on the lease?* How solid is the tenant (ie likely to remain in business)? What bond/guarantee do you have if the tenant disappears or goes bust?* What are the lease conditions with respect to increases (percentage increases or market review, or combination)? * How does the current lease amount compare to market? (Check with…[Read more]

I'd sell the existing PPR and buy the new PPR right now, before your income drops. I think I'd be telling the lender that you've figured out that it's a better financial option for you to rent in your current location and own another IP in your home town, and not tell them your plans to move/change jobs. After all, it's only a plan, and plans…[Read more]

JONCHU wrote:
It is also important to understand that accumulating properties is just one aspect of full time investing, however like any other successful business you need to sell something. This is what full time investors do, I do.

There's absolutely no reason that I can think of why you can't have a successful investing business holding…[Read more]

I think Darra's a good pick; I'd also consider Morayfield (Caboolture) and Riverhills (Centenary suburbs).