Old time historical returns used to be about 10% of the property value as payment for rent … per year.

As you might guess in the modern era .. with much more flexible monetary practises for borrowing … there has been a new standard of acceptable returns allocated to the property market.

The return/value equation seems to make 5% the new…[Read more]

From someone who knows Noble Park backwards .. North of Heatherton Rd is not where you want to be for either investment or the long term.

Know all the Sudanese issues they have in Noble Park? They exist mostly in the areas of Noble Park North and the areas just off Kelvinside Rd.

Your spot in Jeffers St is a 'quiet' area of Noble Park. Its got…[Read more]

All I can say is that I've now become a property millionaire twice now .. once when I was also an entrepreneur in the early 90s when everyone else was pouting in high inflation, and lost in the dotcom boom and bust.

The prevaling wisdom after my first dive into debt and loss was that I was a licentious overspender and I was too much of a risk…[Read more]

kong71286 wrote:

(The rest of the quote appears above without being quoted directly)

However, over the past decades the landscape and rules of money has changed considerably.

Our system today is no longer based on sound money, but is based on fiat currencies and debt.

Fiat currencies that no longer place any restraints on government…[Read more]

I will never work on the basis that I save and have to compromise anything.

I learnt my habits from my father .. set an amount to take out .. from the teller/autobank .. and until that becomes too small to work with .. make that the SET amount you can withdraw at any time .. per week.

At the moment .. thats for him .. 380 dollars. Thats six…[Read more]

Not the first person who gets one person to apply for the lease .. and then finds .. someone else occupying the property.

If it happens .. and it happens more often than I would like to see, then you have NO contractual obligations to both the existing tenancy (breach of agreement) or the existing  non authorised tenancy. Subletting often happens…[Read more]

I can quote you Engelo Rumora circa early 2011

He was in the phase where he realised that he needed to do something smart to get ahead .. and he did it.

If you think the getting and maintaining and creation of property wealth is all in the past .. he did most of his heavy stuff between the start of 2011 and now.

Thats recent .. and validates…[Read more]

I love those Warner Brother cartoons where the father bear who is wrong turns into a first class heel as he gets embarassed.

Unfortunately in the real world .. when your investing turns you into a first class heel .. its because you didnt do your homework as to the risks involved and the trends that allow your property to either retain or…[Read more]

Always arrange inspections. Until you are an absolute gun investor who knows the suburb backwards and what he's getting into, go in and check out the property and its surrounds. Sometimes the property might be fine .. its the position or the company it keeps that may be the problem.

Town research is fine .. but it wont tell you about termite…[Read more]

Buying a new home over an old home is like driving a brand new car off the car lot.

You drive the new car you'll get all the latest fancy gadgets .. fresh seats and that new car smell. And the price drops 20% as soon as you leave the car lot.

Buying a house is similar .. you may find that with older houses you might get a bit more room or older…[Read more]

I dont hang with fools for sentiment.

I've had friends of the family who I've chucked off jobs because they dont know how to do the jobs.

Since the only real relationship you have with the agent is the fact you used him to purchase the property .. you are pushing uphill to get a tenancy with someone who may not be doing the best for your…[Read more]

All I can say is I have now stepped in a couple of times in other people's situations to assist them.

And like you, they made a choice of financial control and risk that led them to the inevitable conclusion.

In 2006 I had a friend who was nearing retirement and inherited from her mother. I suggested a block of units in a reasonable area of 4…[Read more]

It all depends on where you start and what you end up with.

I'm prepared to take on LMI if i know that its not going to impact on my end price result that I want to achieve. In fact .. I started in Sale buying units at 65-70k because they were too cheap not to take advantage of. (same units now resell at 105-120k). The point is .. where they were…[Read more]

Half of the deal to make a loan work is in the presentation.A broker has a vested interest in providing a competent presentation to get the deal through .. he gets commission for providing the deal.Therefore its one step in your favour. A person who will provide a presentation to the bank or financial institution as an in-between ON YOUR BEHALF to…[Read more]

I can ONLY talk from personal experience .. and any people i have previously spoken to about their dealings.However .. when you come into a deal .. bring more than enough security .. more than enough income .. start the deal because they are all affirmative .. and they come back with extinguishing my 190k of credit cards? Sorry .. my cards werent…[Read more]

The banks tend to switch and change in regards to their flexiblity with what they can do.In my early years of investing i found the NAB very open .. very flexible and very willing to commit as long as I matched most of the criteria required. I have had dealings with them in the last 4 years and its really not the same bank.CBA was always…[Read more]

I agree with Derek.First thing any bank or financial institution will do is check your credit history. And the number of times you've applied for a loan and been rejected will show up on your credit record.Commbank is incredibly conservative on their lending practises inhouse. However .. going through brokers you may find that commbank issued…[Read more]

I keep answering with roughly the same answer.You have inflationary pressure that is building up like a shaken champagne bottle.Now you have visible outlets for that.Wheat and Corn both up heaps (they are blaming the poor weather but thats not enough)As a result .. the local farmers are raising the prices of eggs by 50 cents. (anything that is…[Read more]

I've dealt with mould so often i have a series of correctional solutions for it.If you are living in a subtropical climate FORGET ABOUT WIPING DOWN FURNITURE as a preventative .. its only sterilizing the item and once the vinegar dries off … they will be back in no time.You need to look at constructive measures for keeping the internals dry.…[Read more]

Kevreno … i set up an account for each single investment, though it may be several apartments within the investment. That allows me to keep precise accounting records for each investment, based purely on bank statements. It also allows me to enumerate who has paid and who hasnt paid based on the entry in the account.For tax purposes it also…[Read more]