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]

I’ve always tended to think a free-standing house would appreciate more than a townhouse….keen on anyone else’s thoughts.

You’ve got me, nhowarth – I agree completely. You haven’t included land sizes, but i am more comfortable with houses than units/townhouses. But then, we’re all different.

If the 10 year old house were to receive a…[Read more]

To hb again,

But then, as I re-read, I noted you mentioned SMSF – of course, if you invested in a property that way, you’d have NO leverage !!! Was THAT how you did it hb?

You don’t put too many numbers into your story, so its a bit hard to tell. And maybe you just wanted to take a swing at property anyway – well, we’re used to that.…[Read more]

Investment property purchased for $285K with $57K deposit (20% required because we were ex-patriots at the time); $228K owing on interest only loan; value recently appraised at $450K.
Hi Krookfamily,

Although I’m normally a buy and keep kind of person, I think I can see benefit for you in selling the IP. Here’s what I think:

Taking your…[Read more]

Aquila,

My reason for this is to evaluate the scenario based on a cash flow only.
From my recollection, the cashflow is not huge. Are there other mitigating factors that might be worthwhile? (Like Capital Growth?)

Based on a “cashflow only quote” (your words) I’d say “Go find something else”. To me, I’d want a fair bit more than a 0.13%…[Read more]

Steve,

This bit is not working for me –
In regards to the RESULTS folder… you now have the option of collapsing that forum so that you don’t need to see any of the posts that are in it
I click on it, and it laughs at me [blush2]

Benny

stuck-at-2,

Total Loan amount divided by Total Value as a percentage.

i.e. LVR (Loan to Value Ratio)

Benny

Hi Steve,

I agree, too, with Paul and Sonja – I can’t detect what’s read and what’s unread.

But in thinking about font size (too small) I suddenly realised that I’m not using 10cms of width on my monitor. Is there a way for me to set the forum to display 1280 x 768 (or whatever are the correct numbers?) I don’t see this, and, if I could, it…[Read more]

I’m happy to second Ben Poulson – always done me well,

Benny

Hi GPS,

I would not contemplate a CBD apartment – the major reason being that (from what I’ve learned) 50% of CBD apartments are purchased by International buyers. As such, they are shackled by the FIRB guidelines – in short, International Investors may ONLY purchase NEW properties.

Thinking that through, as soon as an International Investor…[Read more]

Hi Milnev,

Derek was saying this
If you do rent out your PPOR then you will be able to claim all allowable costs associated with this property as deductions. BUT temper this thought with the longer term impact of capital gains tax that may come into play.
But as far as I know, if you DON’T move to another PPOR – i.e. you rent yourself – then CGT…[Read more]

Hi Calvin,

We learn a lot from our parents, eh? And not always the way we expect – hope they’re OK anyway.

They were going to do it in partnership with some friends who pulled out; and even-though my parents had the money to BUY IT OUTRIGHT, they let it go………..

What can you do? This has become one of the driving forces for me now.

Benny

Hi Geoff,

It simply means “by quarter” – so if they are talking upper quartile, they are referring to the top 25%

Benny

Hi Audrey,

Not sure I’ve got this right – but it sounds like you are opting for a $15k loss to prevent paying $6k per annum. Is this close enough?

From where I sit, if this is a good Capital Growth area, I’d be more inclined to hold it but look for another +ve gearer to offset it. But then, I’m more a “Capital Growth” proponent than “positive…[Read more]