My understanding is that whenever LVR is > 80% (the most likely scenario for default) mortgage insurance is necessary. If a property is purchased for $200k, the loan would be more than $160k. If, after a short period of time a mortgagee sale occurs and the sale price is < $160k + cost then the FI gets…[Read more]

My wife and I sound similar to yourselves, we built a house in Sheidow Park in 2004 when we were both 24. Lucky for us we’d bought the land 2 years earlier and it had increased in value nicely by the time we moved in. We also now own an IP in Elizabeth, not the best area but we’ve got good tenants and are in the process of sub…[Read more]

Say you advertise at $200 but market rents in the area are $190. If it takes you 10 weeks to get a tenant because all the good ones go for the $190 a week place,…[Read more]

Did anyone see the news story earlier this week about the Aussie investor who got seriously burnt in buffalo? He bought a property off eBay, sight unseen, for $11k (or there abouts) which is amazing. Even more amazing (or not as the case may be) it turned out to be in the worst house in one of the worst streets in buffalo and was an…[Read more]

it’s not easy starting out but you’re young and eager so there is lots of hope for you. I’m suprised you haven’t been able to find any ads where they quote the sale price and rental amount. 5113 (postcode) is an area north of Adelaide that has a very high percentage of rental properties (opposed to owner occupiers).

It’s not the best…[Read more]

I worked out the…[Read more]

with my FI I don’t have to change products if I want to fix the rate, they just do it. The only time it costs is if more money is required (or you want to from fixed back to variable).

I would think you could get a 3 yr fixed rate (my lender’s is 6.65% at the moment) very close to the variable you are on now so the comparison rate…[Read more]

only owning one ip myself (so far) I’m not sure if I’m qualified to answer this but I would suggest that when you come to own 130 ip’s it is not only passive income you are receiving. In one of Steve’s theories/diagrams he discusses using profit to purchase other income producing assets (be that shares, property or other). Steve also…[Read more]

I asked that very question on another thread, seems I’m not the only impatient one!

A few people said to expect it on Thursday, but as they say – patience is a virtue.

Cheers
Mike

Also, probably best to get loans in one name only. ie not with a partner. This will allow you to go further eventually.

Terry, when you say partner, do you mean a business partner or Wife/Husband. My wife and I have 1 IP and our PPOR and are looking around for another IP at the mo. I don’t think I could get a…[Read more]

Hi Barbara,

you may have missed the boat on the Virtual Kickstart program (possibly one the admin guys can confirm) but it’s a series of emails with resources provide by Steve. Mainly downloading info of DVD’s of Steve presenting his advice, very…[Read more]

a little off the map (my wife’s in Sydney thu work so I have to fill the time!), but my parents live in Agnes Water. Things have just gone crazy there over the last 3 or so years (maybe longer), they run a resort (www.edgeonbeaches1770.com.au if anyone is interested) but bought a block of land in late 2002 which more than doubled in…[Read more]

I’m unsure what you’re saying………are you a buyers agent looking for potential clients? Or warning against people “trawling” the forums for clients?

Mike

After reading Steve’s books (if you have) I’m not sure how you could be in favour of a negatively geared buy and hold strategy, although we are not here to cast aspersions.

I would tend to agree with the first two post in regards to increasing your equity (or profit) in some way, although Julie makes a good point about using both of…[Read more]

It’s all so useful and motivates me to go to the library. As I read Michael’s post (no offence Michael) I was thinking “Yeah, whatever” but then, what do you know, two other posts come on about his book and how good it…[Read more]

where you start would have to depend on you goals. It’s pretty hard to find a residential property where the rent covers all your expense (depending on the LVR) but when you go out north you can come pretty close. The down side is that there isn’t much capital growth.

When you look at areas like Davoren Park, Elizabeth Downs, etc what…[Read more]

not sure what’s happening in your neck of the woods but in SA I don’t think they do too many (if any) strata titles these days. Most places that are developed (ie knock a house down build 3 units) are done on community titles which gives each individual owner more freedom. I don’t know heaps but I think the driveways/sewers might be…[Read more]

At first I thought you were want to help spending your inheritance![biggrin]

The other comments are very valid, with that kind of money you should be able to do better than 5.40% (I think) with ING. Most FI’s will negotiate a better interest rate with you for sums over $100k so if you can earn an extra .2 or .3% why not (on a $100k it…[Read more]

there was actually an article in the Advertiser today about the Palais apartments in the East End. It’s more about the noise and stuff down that end of town but perhaps if you googled it you might find something. It says in the paper it’s part of the Alpha apartments.

See how you go
Mike

I love these forums, so many good opinions and you get to learn how others think. Like many others I think credit cards can be good and bad. In conjuction with a LOC they can be an effective debt reduction tool – so long as you are disciplined. Say you get paid $1000 per fortnight that goes in to a LOC, if you use your CC all month…[Read more]

tamtam, I feel sorry for you buddy, but I can see where the other guys are coming from. I admit I’m relatively new but I do have one minimally CF+ property that I found by finding an agent and going to Adelaide’s northern suburbs with her and viewing 7 properties in one day. The one we (my…[Read more]

I’m certainly no guru but I applaud you for thinking outside the box when trying to put a deal together. [thumbsupanim] The way I see it, the end scenario sounds pretty attractive but it’s going to be a hard slog to get there with $700k (approx) worth of loan repayments until your vision comes to fruition. I calculate that interest…[Read more]

My concern for you is in regard to fees, and the funds required at settlement.

Purchase price = $217,000
Fees…[Read more]

We actually live in Sheidow Park and of the areas you mention there is not really too much to steer clear of, I guess it all depends on your strategy. Each of the suburbs have their older and newer…[Read more]

the scenario you describe sounds good (who wouldn’t wnat to make $70k+ in 6 months?).

Can I ask how much you are paying for the relocatable homes and where they will be purchased from? My wife and I have a IP in Adelaide that we want to subdivide, it’s not in the best suburb so we’re not sure if we should just sell the land or…[Read more]

Me and my wife bought in Elizabeth Downs a couple of months ago, we live on the other side of town and can’t believe people live like that but hey, we don’t have to live there. Anyway, it took about a month for our PM (LJ Hooker actually) to find a decent…[Read more]