I personally believe we are well beyond the bottom of the market and heading towards upward movement.Do I need to present proof? Absolutely.The number of properties headed to market for the spring season is still nice and steady.The interest rate is at a level which makes the ratio of borrowed money vs return quite acceptable for a lot of…[Read more]

There are lots of writeups as to why student apartments are a bad invest. The real reasons are pretty simple.Banks wont treat them with respect. Since banks wont borrow on them (easily) or lend against them (easily), you've got an investment that is hard to sell ..  and you will be hard placed to find a buyer for it. Hard to sell, Hard to borrow…[Read more]

The reason the lawyer steps in on special conditions or the Real Estate Institute provides a guideline for the clause is because a special conditions clause becomes a binding part of the contract and its fulfilment.If a poorly written entry allows for the purchaser to have an indefinite period of time for the special condition .. then they can…[Read more]

I'm a mentor for free to people who have genuine questions. I will not ever specify specific areas to invest in .. or specific types of property to invest in .. on an as per needs basis. I am there to educate people to making better property decisions.I dont give all my experience .. but i can give sound guidance and reasonable tips for those who…[Read more]

I think you are thinking too much with a linear perspective rather than thinking outside the box.You've got a property with previous connections to being a gas station. THAT is a problem. Without knowing precisely the US laws on the situation .. i'm pretty sure they come to similar to ours in Australia .. that you clean up the site and all ground…[Read more]

In a position where you dont have too much to risk by extending yourself a little .. go ahead and buy as much property as you can for your buck. If you are more worried about a significant drop in property prices .. head out to a situation where there is less of a risk. As you are earning and could do with the tax benefits that can be established…[Read more]

Hi Bullet46 .. kudos to you for putting your foot forward in the search for new ideas !!Personally I dont like either of your current options … and I will endeavour to explain why as we go through.

bullet46 wrote:
Option 1 (perhaps the better optiuon as its her thought): We buy a block of land and then build another house which would end us up…[Read more]

I dont have to understand it .. but as far as i'm aware and my contacts extend .. the Latrobe Valley is dead .. ASIDE from Traralgon. Something has gone right in Traralgon that isnt happening in the rest of the Valley.Things are moving along there in leaps and bounds. I think its largely to do with the fact they now provide cheap commercial areas…[Read more]

Unfortunately your accountant is right.You've got a wide selection of properties all with a reasonable appreciation and however .. a large valuation as well. This means really that anything you purchase will be additional to the current assessment and therefore increase your land tax burden.Its not an unusual problem to have. The only thing i can…[Read more]

rusty05 wrote:
Hi guys,Xdrew can I ask how you structure a portfolio of that size?  Apologies if it's a no-go zone. I understand that there's no one size fits all regarding trusts, company, individual names etc but i'm interested in how larger portfolios are achieved.Regards,Rusty 

As you might understand I would prefer not to discuss comp…[Read more]

It also remains pertinent to realise what your mix of demand is.In a high load area with lots of jobs .. lots of transient workers … you'll find a strong steady demand for units and studios.In an area where there arent many units and lots of land .. the demand for houses will be stronger.In an area where land is now pricey and there is…[Read more]

You moderate your goals .. you attain your goals.Then you reset your goals and aim for the next attainable level.Then you reach that .. and try again.How you reach your goals is the creative part. And at each level it becomes just a little easier.

Timing is everything.Anything i'm purchasing at the moment involves improvement and re-evaluation.I've got a substantial portfolio … returning after expenses and debt repayments over several properties .. in several states ……. around the 530k mark. Thats a good amount .. but as you might guess .. to avoid a hefty tax burden that gets…[Read more]

I think the most important thing i can add to the conversation on this  .. is know your market before you head into it.It can be five days research .. or five years depending on how much  you need to know. But do the research .. and you can establish the market demands .. and thats where you will make your money. Because if no-one wants your p…[Read more]

If you think its hard out there to borrow money .. chances are you are right.But then its also a great time to be advertising for better returns than the banks. I found myself short for a couple of properties in 2008 when the banks werent lending to almost anyone and the money supply dried up. So i posted an ad in the paper for getting a better…[Read more]

You build your asset base with bricks. The first property you buy is actually the most important and for this you need to make sure you get your decision making right. It sounds great to get a property in an area like Goomeri .. but its basically a reasonable distance from where the action is. As long as you remember that property is a social…[Read more]

Sum it up nicely without verbage.The positively geared properties of the countryside are significantly more risky. They incorporate the possible loss of tenancies .. the replacement of acceptable tenancies with 'filler' tenants. And finally due to both of these .. the loss of long term value against both inflation and capital growth. You can make…[Read more]

Here is an easy insight. Unless the city or suburb has some severe problems holding it back .. the usual timeframe from boom to boom is about 15 years (give or take 1 year). So .. keeping that in the back of your mind, the easy thing is to look for a suburb or town where the last boom was 12-14 years ago. And usually thats a good indicator of its…[Read more]

Out of maree's options above … Ballarat is a no. After 15 years of studying Ballarat .. it doesnt have enough upside for the town.Its suburb .. Wendouree was a possible investment area a couple of years ago .. but again .. not much more room for growth now.Geelong is a big area. Out of the areas .. the surrounds close to the university are…[Read more]

There was a young man with no cashWho found his finances werent too flashAfter finding a brokerWho wasnt a jokerHe found himself able to splash !(ok .. i'm NOT a poet .. and thats almost a limerick)see luke86 for the actual decent advice.