Be careful of financial planners that push shares and life insurance. To me these are just sales people pushing products they are not investing strategists!

I would recommend Chris White from the prosper group in NSW, he is an investor and will be upfront and honest about whether he can help. [email protected]

Possum or rat maybe?

I have never used them but have some clients that have looked into them before deciding to find and purchase their own properties.

They "lease back" which means that you are garanteed a lease for a certain period of time often 5 to 10 years. Their rentals tend to be a little below the market due to the length they take them out for. They control the leases which means that you cannot get an independent pm to rise the rent to current market conditons. It is more of a set and forget investment but on the lower side in terms of return (due to the low risk).

any property solicitor could do it. Use the one you were going to use to transfer the title, you need one regardless of whether you have an agent on board or not.

Linda, please be careful with agent contracts they are not written in favour of the purchaser. I hesitate to comment specifically becasue I'm not sure what you signed but YES the agent will be entitled to full commission if you sell it yourself unless it has been cancelled in writing and acknowledge that it has been cancelled by both parties.

Even then, if they can proove that you sourced buyers while they were under contract they could argue that the buyers came to you due to their advertising and are therefore entitled to a commission although the contract is cancelled.

An ethical and honest agent will let you out of the contract especially after having a try for 8 months, they realise that customer relations are more important than dishonest commissions. Unfortunately, most are not ethical and honest!

Here is an extract from our info brochure regarding positive and negatively geared properties: If you ignore our marketing terms, the arguement on both sides may be useful!

The concept of generating positive cash flow income through property has been an area of contention amongst industry experts for many years. The argument is one of risk and exposure on both sides of the equation. Buying Positive Cash Flow PropertiesDue to the recent property boom in Australia, properties producing a positive cash flow at purchase tend to be older-style houses located in low growth, low demand (usually rural) areas. This exposes the investor to risks of higher vacancy rates, higher repair and maintenance issues and a high exposure to debt that can only be offset against minimal equity generated in the property over time. This could be particularly risky in a market of rising interest rates. For example, a unit purchased in rural Alice Springs for $90,000 may achieve $200 per week in rent but in five years time if there has been no significant growth in Alice Springs, the investor still has a $90,000 exposure to debt. If a similar investment property is purchased in a higher growth area however, the same $90,000 property may be worth $160,000 in five years time therefore minimising the investor’s risk.     
Negative Gearing

Although negative profits relative to investment properties can be used to gain a tax advantage on other income, the property still achieves an overall loss which does not make financial sense. The rationale behind the negative gearing strategy is that the investor purchases a negatively geared property with a speculation that in a certain number of years, capital appreciation in the property will outweigh all losses incurred during that those years, resulting in an overall profit for that property. Most properties in high growth areas will appreciate in value given enough time; however, it is difficult to speculate exactly how long is required. In the meantime, money paid into funding negatively geared properties not only reduces the investor’s lifestyle, but also their serviceability when it comes to financing. That means that most investors (even those on high incomes) can only service at most, four or five properties in a negative cash flow situation. Balance is the KeyA successful wealth-creating property portfolio has a balance of positive and negative geared properties. Positive cash flow generated using our Let-Sale™ system can be used to service high-growth negatively geared properties meaning that your portfolio can grow faster and property acquisition can be achieved irrespective of your income.

No standard! Ideally, agents should let clients out of the lease whenever they want if they are not happy. I don't understand the rationale of holding a client to a contract if the client is not happy with the level of service.

Terry, it is common for pm's to sign leases on behalf of the owners, that's their job. It must be within owners instructions however!

I would have thought 12 months is better than 6? If you are worried that the rent cannot be increased within that time, it can! We do rent reviews every 6 months and if the market has moved, we up the rent even if there is a fixed term lease in place.

Hi Dougie,

Semaphore is closer to the beach and I think may have more growth potential. Everyone has a different investment strategy, as a rule I don't buy new appartments or townhouses from developers, I like houses where I can "value add" and increase equity. I like free standing older houses on larger blocks that have the potential to be subdivided or renovated. There is nothing to do in newer houses and all the profits have been taken out by the developer. Only time can increase it's value if the market is moving upwards, it's out of your control.

We have done several rent appraisals for the newport quays at Port Adelaide and they have come in at around $600 to $700 per week for 3 bedroom appartments and around $400 to $500 per week for 2 bedroom. Please keep in mind that statistics had to come from Glenelg and similar suburbs and no precidence has been set for Port Adelaide yet because they are currently unfinished.

Please feel free to ring or email us at any time. Details on our website

You will be under obligation at all times to disclose the history of the house. Please keep that in mind if you want to rent it or sell it down the track. If information such as a murder history is not disclosed any contracts signed over the house can be rescinded by a court.

Also, the stigma here is a murder which is very different to someone dying in a house naturally, the later would not normally be a problem. Deceseased estates are sold with no stigmas attached all the time.