I think I met that girl on Santorini in ’94.
Sweet![biggrin]

Establish what comparables prices are being achieved for similar properties – both purchsse price and rentals. With that information and based on your finances and what you can afford to pay, it doesn’t matter what the agent says.

If you decide that (before costs) you will pay $90k for example, don’t concern yourself about the bluff game that an agent may or may not play.

Give yourself some room to move in the negotiations. Different states will have different rules about submitting offers. ie $1000 deposit at the time of offer or just verbal offer.

Rest assured, if they do say there is someone else interested in paying more and its beyond you. Ask what else they might have in your specific price range. If they don’t, give them a card and tell them to call you when they have something because you are ready to purchase for the right property.

James

HHH (any relation to the wrestler!!)

I am of the opinion that you may not be able to get IO on a PPOR. (Not 100% on that one though!)

Correct

Only the amounts drawn done are tax deductible, not the full amount.

I have an I/O investment loan and a LOC (equity loan). A Classic Plus Account, which is linked to the loan account, as offset. Pretty straightforward….

James

Mini,
I agree (not surprisingly). Whilst there will be cyclical influences like the rest of the country, the population movements alone will drive land values upwards moreso than any other area.

From 1975-2000, the GC population has increased by 279%. Similar predictions are there for the next 25. Admittedly this is much longer term in focus, but I can not see the fundamentals for investing in area better than the GC.

Hervey Bay, Logan, Joondalup & Shire of Caboolture have very bullish population growth, infrastructure planning and jobs growth.

A very strong concensus is the continued growth in the next two years throughout Qld by many ‘so-called’ experts (Of course they have been known to get it wrong!).

James

As an observor/reader to that post, I do agree with you Pisces. However, I guess that is a by product of passionate people.

James

Dereksam,

1. Don’t get too focused on interest rates for investment properties. Find out through a mortgage broker who will lend you the most…Ultimately that is more important when investing (in my opinion). Interest rates are tax deductible.

2.Your parents equity doesn’t necessarily mean that they have to go on title. They could gift the money to you and you can have an arrangement with them privately to pay them back or if they want they can be an unregistered 2nd mortgage for the property. The name on title will be still be you.

3. Mortgage insurance – I have no issue with paying it, because it allows me to reduce my outlay into my next IP. It also allows me to have extra cash available for other things ie next IP purchase or general emergency fund. Of course, the mortgage insurers will usually want to see 6 months saving history. Make sure you can show this…

4. As to area, I would look at the Gold Coast (I have recently bought there – I live in Melbourne). Internet is a good start, contacting agents in the area.

Educating yourself with respect to property investing would be advantageous. Do a search on this site under resources. There are many books reviewed.
With regards to location selection, and some great information on Australia population shifts & lifestyle changes backed by statistics, I would recommend ‘The Big Shift’ by Bernard Salt. (Might give you second thoughts about Tasmania)

Trust this starts/continues the cranial property investment juices for you.

James

holdencommodore,

The aim of +ve investing is as far as I can understand is to get access to passive income immediately. Cyclical factors will affect most properties, there is no discrimination as to +ve or -ve. If return on any asset is yield plus capital growth, then merely a higher yield is only half the story. Higher yield also means higher risk.

Your assumption about buying a property today, is that they will reduce in value given where we are in the cycle. I don’t think buying today means you are necessarily going to suffer a capital-loss. That depends on many other property-specific factors. In anycase investing in R/E is not a short-term strategy either.

I disagree with your statement that capital appreciation is a bonus. Ultimately this is where you make your money in r/e over the long-term.

The ability to service loan commitments, whether +/- CF is merely, in my opinion, a vehicle to hold properties for their appreciation in value, whether by adding value yourself or gaining from market growth.

You could buy poorly and pay for it for many years. The mid-late 80’s purchases of property in Qld are one example. If you have a simple buy and hope strategy and waiting for immediate appreciation today, then you might create a rod for your own back.

James

Nathan210,
Building new residences is not a straightforward project. Make sure you get plenty of information from builders, town planners, legal advice and a good mortgage broker.

I think the idea, if succesfully implemented, is great.Funding and the extent of what you might be able to get from a financial institution, will also be dictated by the level of expertise or experience in project managing this type of activity.

James

I think property investing is a combination of art and science.

Nice to have hard figures but there needs to be context to the actual numbers.

James

Jesse,
A sinking fund is an amount of money raised by the body corporate designed specifically to undertake capital improvement(s) to the building.

Things like maintenance of common areas (carpets, painting), landscape gardening, structural work on building, external electrical work etc.

It is prudent that most body corporates have an amount in their sinking fund to address these issues as they become due.

AS a property owner, you will pay Body corporate rates, plus an amount for the sinking fund. Please note however, that the sinking fund is not tax deductible. There will also be GST payable on the sinking fund contribution.

James