Hi Kurtuk,
  Good work !!   I think a valuation will add a bit more certainty to your current situation. 

 A quick Google told me a little about Eatons Hill –
 http://www.realestate.com.au/neighbourhoods/eatons%20hill-4037-qld
  I was particularly interested by the number of "buyers looking" in that suburb.  Sounds to be a bit sought-after -…[Read more]

Hi TM,

Quote:
If I take out a Interest Only loan in my name and have an offset account attached to it- is this okay???

  I love what Offset/IO loans can do for us.  As such, it sounds ideal to me – but, I am not a mortgage broker, nor any other qualified adviser – so do be guided by what others on here with the right credentials might…[Read more]

Hi again,

Quote:
Are there any other options out there?

  Yes there are….

  You may not like some/all/any, but here are a few thoughts that might guide you in one way or another.  I’ll summarise each, but if one particular option seems to sing your song, then jump back in to ask for more info re that one, OK?

First though, in what area is…[Read more]

Hi Miger,
  I totally agree with Mark :-

Quote:
Renting where you want to live and investing where the market is moving can give you the best of both worlds

  With an IP in an area where it "works best" (i.e. +ve geared) and the income from it decreasing your rental cost (plus throw in Depreciation, etc to get Tax benefits) and you renting…[Read more]

Hi Jade,

Quote:
Whats the normal charges for depreciation schedule?

  I haven't ordered one in a few years now, but I recall $500 being about "the norm" back then (about 7 years ago).  A quick Google held a (possibly) pleasant surprise though – Google corpred.     Or maybe someone else on here already knows of them…..  

  I must admit my…[Read more]

Hi Kurtuk,
  And welcome !!   Depending on how long you have lived there, and whether you might have bought for a discounted price, the property value might not now be $540k.  We appear to be coming out of a 7 year slump in Brisbane (when prices hardly moved overall), and there are indications that values may be heading North, or have already…[Read more]

Hi Paterson,
  You might be new to this, but you certainly appear to have your thinking cap on…..  great questions.   Property moves in cycles (I often refer to it as like "stairs").

Quote:
Would it be fair to expect 1% per year without any changes in the area regarding company lay offs or infrastructure etc. – See more at:…[Read more]

Corie said it for me – I was about to offer a few "pro's" of purchasing an older dwelling…..  

The point made by Corie re "manufacturing growth" in an older place is well made.  

As well as that, existing homes often don't have any "wait and see" points associated with things like – neighbours, infrastructure, "tone of the area", etc.  The…[Read more]

Hi Paterson,
 

Quote:
So who would be notoriously good for planning to release equity in the future and grow your portfolio.  I know you can't endorse anyone but since this is all new to me are their known players in this field?

   Find a good Mortgage Broker (many of whom post frequently here – particularly in the Finance forum).  Read the…[Read more]

JacM wrote:
A big mistake is to pay off a property loan (as opposed to just pile spare money into an offset account).

Amen to that one JacM !!   And especially as you mentioned Offset account – they cure so many possible "diseases" !!

Benny

Hi again, Paterson,
  You're really getting into this – good to see.   Another seriously good question – I'll see if I can do it justice….

Paterson wrote:
if I have put $30k down on a $250k property, and have the rest on interest only mortgage, my liability is for the full amount of course but my investment is only the $30k and if I have…[Read more]

Hi Paterson,

Quote:
Is yield on a property the rent as a %age of the value of the property per year irrelevant of what out goings you have on the property ?

Yes, that is Gross Yield as JacM mentioned.  Gross Yield is typically a good "starting point" when considering purchase.   It can guide you to say "I can't pay more than $xyz else the Yield…[Read more]

Hi enc,
   Welcome !!  Sounds like you are in a good place with a chunk of change to use…..    I'm sure the possibilities are vast, but if you share a little more about yourself, responses might be able to be tailored more toward your preferences.

  e.g.  What age group are you in?   Do you want to limit your purchases to the city/region you…[Read more]

Hi Melissa,
  I'm from Brissy too, and my places haven't seen much growth for several years.   Signs appear to be changing for the better recently though….    But then, I have houses – I gather units have a different way of working.   E.g. I gather the dynamics differ in that, a forced sale in a block of apartments can impact on perceived value…[Read more]

Hi Investhut,

If you are prepared to lose it, you may well win it.

Pick a figure you are happy to pay, front up, say “that’s all I can afford” – and be prepared to walk away.

If nothing else, it will get him thinking. It seems there has not been too much interest. Maybe he is getting anxious (or maybe he is DETERMINED to hang out for his…[Read more]

Can I say, don’t depend on Silhouette to get you there. The numbers provided are seriously flawed.

$rent / 2 x $1000 x your best bank interest rate.

Eg (say, best bank rate you can get is 6.84%)

$295 / 2 x $1000 x 1.684 = $248,390 is the top price to pay

If using this as a rule, an Interest rate of 2% would have you offering $177k for an IP…[Read more]

Your still going to have the same amount of debt if you just use the equity and purchase another. Yes your intial house will be $50k more in debt but your second will be $50k less in debt and you only have one property to worry about all the buy in costs involved.

I don’t agree. If you’ve sold the first IP to fund the next two, then you…[Read more]

Hi Carpe-diem,

Sounds like you “seized the day” – and good for you. And I love what I read from you:-

in fact their value is going up by 10% minimum pa so that makes the overall value increase by 170k for the coming year alone.

You’ve got to be on a winner right there, CD. If Derek is right, and you only need $37k pa, this HAS to be good…[Read more]

Hi Redwing,
I dont understand this point at all?

Am i missing something?
My point was simply that a 1 year old townhouse would still be looking pretty good – but a 10 year-old house could maybe do with new carpets, a fresh coat of paint, etc.

Were you missing something? Hell, I dunno – but that’s where I was coming from. What do you think…[Read more]

Hi Dazzling,

I haven’t always agreed with you in the past, but you get my gong for this comment. Hehe – as if it matters [blush2]

Over the last two years, I’ve also found talking about investment properties to elderly folk to be one of the most ‘positive’ aspects of investing, and indeed have landed one absolute cracker of a deal via word of…[Read more]