Hi Robert

Some suggestions and questions

How is that you are not getting a response from your phone calls? Answering macine or what.

Set your phone to not showing your number so that there is a better chance of getting picked up.

Get involved with the strata so that you get on the committee then get the strata involved with the parts of the…[Read more]

Generally the bank will force you to have mortgage insurance when you have less than a 20% deposit.

Apart from the cost of the mortgage insurance there are only a limited number of ins companies that actually provide this cover (about 2 ) and they then keep a record of how much they have covered with their upper limit at about 1.5mil.

So when…[Read more]

Hi Neal

It is really a subjective question as it is dependent on the reason for buying the property, whether you want to negotiate further and a miriad of other reasons.

I will take that your not about to tear it down so as such I would be include it as a condition in the offer and only proceed with the inspection when the price/offer is…[Read more]

Hi micheal

You generally need to get a depreciation schedule done by a quantity survey. These guys will do a full depreciation schedule for you taking into account the base value and the age of everything.

The cost to get this done is $300-400. More to the point the ATO excepts this as true and correct with the fee for getting it done deductable…[Read more]

Hi Guys (all sexes)

Just some thoughts

History repeats itself because people don’t learn. A classic example is the recent stock market boom where the talk was ‘this time is different’ ‘new econmy’ etc and the prices were pushed beyond reasonable investment criteria. People believe the hype get on the band wagon the axels break and low and behold…[Read more]

Hi Trying

I know this thread is supposed to be about qualities for a good tenant but about your 2nd property that your having some tenant issues with. May I suggest that you start using 12 month leases rather than the standard 6 month.

My reasoning is that with a tenant willing to sign up for 12 month you cut down the changeover work between…[Read more]

hi kds7arr8

I am curious, what is the ‘red tape and zero flexibility’ you refer to?

Cheers

Hi

On renovating the unit I lift the rents from $130 pw up to $175pw and that was in a stagnant rental market. Total spend is about $8k.

I thought it was an interesting story in contrast as to what it looked like to what it actually was.

Stretch, as far as inspections go you can inspect as much as you like but in the end you can not impose your…[Read more]

Hi All

Well lets be controversial my stock standard answer is ‘there is no such thing as a good tenant’ []

In a property managers eyes a good tenant pays the rent on time.

In the property owners eyes a good tenant is one that pays the rent on time, looks after the property like it is their own rather than somebody else’s carries out any minor…[Read more]

Hi Matt

I don’t know about where Steve finds his deals but I look in the Saturday Sydney Morning Herald.

This has a section under Commercial Property Forsale. You will find all sorts of wharehouse, commercial, DA approved property etc advertised. Amongst them generally under ‘Investment’ or ‘Flats’ are multi occupant units.

Generally it runs to…[Read more]

Hi 4walls

What Dianne is refering to only applies to wrappee’s who occupy the wrapped property and for all intent are the bennificial owner, although they do not actually settle on the property until the end of the terms contract.

In your case, as I understand your situation, either you or your tenant will occupy your house until settlement thus…[Read more]

Hi Rob

No doubt you have done the figures but they are great.

price = $41,000
costs? = $1,000
purchase = $42,000
loan = $32,000

rent = $5980pa

rates + levies = $1500
loan costs(6%) =$1920
maint = $500pa
pm = $500pa

income = rent – (rates + loan costs + maint + pm)

income = 5980 – (1500 + 1920 + 500 + 500)
= 1560

deposit + cost =…[Read more]

Hi Nathan

Without digging out one of my mortgage documents could please eleborate as to the ‘all moneys clause’. Are these the clauses that prohibite any transactions against the property?

Cheers

As I understand it if you have claimed depreciation on capital items, then at the time of selling the ATO adjusts your cost base subtracting the depreciation from your initial cost.

Property cost =$100,000

Owned for 5 years depreciation = $5,000

Cost base for CGT calculation = $95,000

so effectively adding $5,000 to your taxable income before…[Read more]

Hi Leigh

If you want to meet up with like minded individuals you may want to try Freestylers

wwww.freestyler.net.au

They generally meet ones a month. You can check out their site for further details.
Cheers

Congrats Rob well done. Those figures look pretty good and certainly with a bit of a polish you should find the vacancy factor manageble.

I would check those body corporate fees as this seems somewhat high. If it is common water then there may be a water leak. Get a budget/last years expenses from the manager. Simple check.

Cheers

I am with you Felicity.

I think tails has finally shown his spots, simply regurgatating words without any real substance.

If you look at his posts people have addressed his concerns, answerred his question etc but he does not acknowledge anybody instead each new post is directly aimed at Steve.

This to me seems like he had an axe to grind the…[Read more]

Tails

I feel that your investment philosophy is flawed as you do not take into account the erosion of tax and other costs each time you change investment strategies.

The capital gain on real estate and shares are subject to CGT and as such you will be loosing approx 25-30% of any gain to the tax man. With interest bearing deposits this is a…[Read more]

Hi Guys

A twist on the LOC option is to get a interest only loan with a 100% offset capability.

The advantage of this method is a cheaper interest rate.

The down side is that they review this loan as the interest only component is for a fixed period.

As AD says it is very important that you set up the structure correctly.

Some of the things…[Read more]

I believe your right AD but what Young gun could do is sell an option to buy at a token amount. This could then roll into a contract with appropriate dates at the right time.

The buyer is happy as he can start plannng as if purchased at the expense of the seller and seller is happy as meets the CGT requirements.

Cheers