Stu, thanks for the article. Simple and to the point.

Question re Guarantors. If I was a guarantor for a corporate trustee as director for an investment loan, for $300k, what would the entry on my credit history be?

Is the wording any different to a normal loan application? ie Bank X enquired about you on xx/xx/2005 in reference to a Real…[Read more]

I would also be asking the 16y.o. to fund their own “recreational activities” from wages they can earn from part-time work and/or get them to pay $20+/wk board

Jason are you seriously suggesting that she take $20 per week from her 16 yr as board…I understand her financial situation from what has been described as tight, however, taking money…[Read more]

Yes – re them reducing your serviceability

Cathnniv,

Well you need both equity & income for additional investments…

Even with a CF+ investment, banks will take approx (depending on which bank) 75-80% of income in serviceability criteria, so depending on how much cash flow positive it is, it still might drag down your serviceability.

How do lower income earners get the funds to…[Read more]

Further to Terry’s post, for off the plan purchases, stamp duty has to be paid within 3 months or at the expiration of 12 mths after the date of agreement, whichever is first.

Kerwyn, agree with your sentiments, but not sure about this I believe the best place to start is do a reno, find something cheap fix it up and you have instant equity, money out of thin air..

You do need to find your niche, however successful reno’s IMO are not necessarily things to start off with. From the sounds of nowork’s original post,…[Read more]

Unit title allows land and building to be divided into individual units, however the two dwellings are not strata titled. Would be stratum or company share title.

Therefore I think it means, that any subdivision would allow dual occupancy ie two dwellings but would need to be on separate parcels of land, not one title.

Even in retirement you want your money invested in something other than cash. People don’t just go and cash their Super and park it at the bank.

I agree in principle that there will be no wave/tsunami of selling by baby boomers. Monies will be invested, I suspect the argument might arise as to where it might be placed or switched…[Read more]

Salient points Michael, especially for those considering development.

I am also in the same position where I am considering developing, but actually very much considering using Metropole due to my inexperience in this area.

Given all the commentary on property prices etc, would not this post-boom climate, be a better time for development (other…[Read more]

To build there or for thnat matter in any country where language is a barrier will be problematic. I would recommend having someone who speaks the language and can liaise with the builders.

It is also not something that I think you can do from abroad. My father will be going back during the major part of the re-building to supervise and keep…[Read more]

One of the side effects of a strong and sustained economic growth (not a bubble), is the reduction in the apetite by the incumbent government to further drive economic reforms.

From July 1 this year, they have their chance if they so choose, but a difficult one to push against what will be the very noisy forces that will line up against them. If…[Read more]

Lainy,

Parents are building property and renovating old paternal home on one of the islands.

There is much interest from people in the UK & Germany in particular which are looking at buying and paying some large amounts of money for land/old buildings, especially on the islands.

Costs (above purchase price) for EU members are apprximately…[Read more]

What if the latest interest rate increase doesn’t have the desired effect that the RBA wants? Well, it increases interest rates again……Whether it’s the latest rise or subsequent ones, they will have an effect.

Are these currently owned by individual investors or a serviced apartment chain?

RP Data should have previous sales numbers if they have sold before. Will give you a better indication of past price increases. Cashflow considerations are one but many.

Greg,

How quickly after a sale is the information be updated with RP Data?

I don’t know about travelling costs though

The trust can provide a travel allowance

1. If its a renovation, no.

2. You can claim costs from when the property was available to be rented. ie September

and the question that comes up from my brain is

Leo777, that’s a classic[laughing]

kopp_dan,

Interested in why you would be looking at purchasing a studio apartment?

Is this because the lower entry cost compared to other properties in Sydney?

Is there other/better software to value your properties?

Yes…comparable sales of the same property type in the same area.

Cost – a couple of phone calls to local agents and a few hours max to possibly view them

If that was spam, then you got me to look![wink]

am looking to purchase my first investment property and unfortunately after a lot of research there are no properties even close to passing the 11 second rule

Cashflow from any IP, is one of many factors that should be taken into account when making your decision to proceed or pass.

Blind faith to positive cashflow is a recipe for disaster.