Hi MM,
Wow. I’ve been out of it awhile, so my “numbers” might be a little out-of-date – but that quote just blew my mind !! My first thought would be to get two more quotes (at least) and have them itemise the expenses – i.e. If they are not providing the DA part, where does all of the expense come from? Are there major earthworks to be done?…[Read more]

Hi Kengw,
Good for you for having a plan. That alone is a very good start.

i’ve made every assumption along the way very conservative

1. I agree it is very conservative.
2. Your PPOR may not be quite as flexible as other IPs, so would its $3m be as accessible for investment as the others? Of course, you might downgrade to something s…[Read more]

Hmm, my lack of knowledge of Units is showing – I only ever did buy houses.

Anyway, Kengw, the other thing that I recall the Body Corp might be doing is imposing a “Special Levy”. That might be another name for Sinking Fund – or it might be they don’t use the term sinking fund at all, but they might instead have a Special Levy that all owners…[Read more]

Hi Kengw,
First points to me would be these:-
1. Many lenders won’t offer finance on “tiny units” – and for those that do, they might only offer 60% as a mortgage. Would you have a spare $80k to cover Dep/Costs?
2. “What are your Body Corp costs for this place?” These could be a large outlay monthly – might include large Sinking Fund payments…[Read more]

Hi Dave,
If the sellers can’t see a good deal when it is presented, I’m wondering if you simply need to pay full price.

However, if you don’t mind “playing games” and are wanting to twist a few arms, you might wish to put a sunset clause into each offer. That clause might simply state that they “Have 72 hours in which to accept (or start…[Read more]

Hi Zehra,

where to find the right suppliers for our timber , tiles , plumbing etc , my partner is not from here so he has no idea also

Tell us all where “here” is, and who knows – maybe one of our members might be able to help. ;)

If you are building in Rockhampton, knowing where to buy stuff in Melbourne wouldn’t be a lot of use to you. Do…[Read more]

Queensland per se is not the problem – the product you were buying was the problem.

Sorry guys, but I am sticking with my original statement (above). It may APPEAR that Qld was the problem, and there are reasons for that. One common “gotcha” is that Qld prices (locally) are way below similar prices in Sydney or Melbourne. Some marketers u…[Read more]

Hi Doug,

Whatever you do, DO NOT buy into Queensland unless you want to throw your money away.

Queensland per se is not the problem – the product you were buying was the problem. Sorry to hear of the outcome – but thanks for sharing your story.

Benny

Hi Terry,

Not correct Benny

A valuation is only needed if an existing main residence becomes income producing.
In this case an investment property is moved into so a valuation can’t be used.
The CGT will be worked out on the portion of the time that the property was a rental.

Of course – I had it the wrong way around !! Thanks for the c…[Read more]

Hi Jon,
Welcome aboard this good place !! I can’t help with spreadsheets, but regarding meeting others to learn, here are a couple of links that let you know what is happening from time to time. You might wish to make contact with the two posters who advertise these meetings as I think they also conduct them.

They pop up every two to…[Read more]

I think Terry is meaning the property will only be exempt from any further value increases from the time you move into it as your PPOR. But you will likely be up for any Capital Gains above original purchase price up until the date you move in. You will likely need to get a valuation as you move in – gains from that value upward would be exempt…[Read more]

Hi Steven,

After talking to a few agents, I was told basically the local council put this phrase on literally every property’s report and it looks like the council put down this as a “blanket to cover themselves as result of earthquakes in Christchurch”.

Hmm, so this is a Council Report then? I had thought it was a Building Inspector’s repor…[Read more]

Hi Steven,
An interesting phrase for sure. On one hand it might be as realistic as having someone reporting of a car for sale “Possibility of an accident if driven on roads”.

On the other hand, if this property was in Chch (or a similar area where that actually HAS happened previously) then it would certainly be worth heeding. Further due…[Read more]

Hi Kevin,
I don’t know of many on here who would know India well enough to even hint at an answer. From my personal perspective, I would baulk at buying something that doesn’t have the required permissions in place.

My answer would be NO – because I don’t know enough about akrama sakrama nor any penalty amounts that might apply. Perhaps…[Read more]

Hi Kevin,
I don’t know of many on here who would know India well enough to even hint at an answer. From my personal perspective, I would baulk at buying something that doesn’t have the required permissions in place. Others with much knowledge of legal things might have more strings to their bows.

Short answer – no !! (in my opinion)

Benny

Hi Sarah,
… and welcome to this good place. Just so you know, I removed the second thread you started – so we don’t get people replying in two different threads, all saying the same thing. By keeping it all together, I think you will find it easier to keep track – and so will we.

Re the question, I would be looking closer at “buying…[Read more]

Hi Sarah,
… and welcome to this good place. Just so you know, I removed the second thread you started – so we don’t get people replying in two different threads, all saying the same thing. By keeping it all together, I think you will find it easier to keep track – and so will we.

Re the question, I would be looking closer at “buying…[Read more]

Hi Muzza,
Welcome aboard. That’s an interesting suite of questions, but in thinking around them, they lead me to question you even more – take a look at my thoughts:-

1. You don’t mention current value or rent of a 2bdr in Wooloowin. But you said $250-300k to lift/expand it to a 4bdr. I took a quick look at re.com.au and it tells me a few…[Read more]

Hi Ithelien,
One part of your due diligence would be to have a Building Inspection done, yes? For the few dollars it takes, having their report on THE actual house would be good to have for your peace of mind.

I believe there could be extra charges for “more than usual” inspections – e.g. If you required them to take a long, hard look at…[Read more]

When you said about it being quicker to pay down our mortgage using equity growth, do you mean equity growth in an investment property obviously?

Correct. e.g. let’s say your wage has a bit of excess and you can find an extra $200 a week to put toward your mortgage. Roughly, that’s $10k in a year. Pretty good, right?

But what if you…[Read more]