Hi Steven,
In my experience, most valuers tend to be conservative (as their neck is on the line if they over–value). HTW is certainly one of the more well-known.

Also in my experience, a valuer will RARELY value a property at higher than the contract price – so if a deal “stacks up” when purchasing, it may well be that the property is…[Read more]

Hi Tom,

– The young couple with 1.2 million in debt (plus two builds to be added to this) with a net worth of $300K (They stated the portfolio is worth 1.5 million), which is a Debt/Equity ratio of 4 (that’s 400%.

Sounds like an 80% lend to me !!

Many start out that way (even you, but likely not on $1.5m eh?) In my case, my first was…[Read more]

Hi Tom,
You’ve uncovered a heap of good stats there. Good luck with the broker.

Along the way, you asked this:-

Over the past 5 years rental growth has been 1.6% per annual, for an 8% growth between 2011 to 2016/2017.
This seems like reasonable rental growth. What type of growth do you (forum members/investors) factor in for residential…

[Read more]

Hi Tom,
You’ve uncovered a heap of good stats there. Good luck with the broker.

Along the way, you asked this:-

Over the past 5 years rental growth has been 1.6% per annual, for an 8% growth between 2011 to 2016/2017.
This seems like reasonable rental growth. What type of growth do you (forum members/investors) factor in for residential…

[Read more]

Hi PT18,
You might get a good idea or two from this discussion :-
https://www.propertyinvesting.com/a-budget-with-a-few-nasty-jabs/

Note that the situation evolved over time, and, by May 10th, Steve was pretty much defining what he thought might be workable. One early response has a link that goes to a Quantity Surveyor’s office, and, if…[Read more]

An interesting one has been discussed recently – someone asked about the benefits of buying a unit in a retirement village. Lots of thoughts were passed around over this one.

On the plus side, the returns looked mighty good – initially. Was there to be Cap Growth into the future? Would Banks even lend – this was low priced, but also in low…[Read more]

Hey Jaxon and Tom,
I’m appreciating the discussion here – lots of numbers and shared thoughts to inspire others. So, thanks you two. I’m about to direct others to this thread for their edification. ;)

Benny

There have been posts in here earlier on Dominique Grubisa – check them out in a Search, or do a Google for more info.

I haven’t heard her – it would be interesting to hear what you think of it once you have attended, Steven. And yeah Google confirms $6k for the “rescue” course – but as happens often, by attending the seminar there may be a…[Read more]

Hi Steven,
There is a lot of truth in what you are saying:-

The result is before we realize what happened, Rowville went from an unpopular area to an area where housing price shoot over the roof. And now, those who bought in Rowville only 5-6 years ago, they are all laughing.

Sure, this happens often – you might see a lot of renovations…[Read more]

Hi Simon,

looking for over market rent while they have continued guaranteed rental income?

By that, I presume you mean that your friend is bound to pay rent in lieu of the broken lease? i.e. they are “in the gun” for rent until it is leased anew to another tenant.

At first glance, and in my opinion, this wouldn’t pass the “pub test” (or…[Read more]

Hi Steven,

I do somehow get the impression that you make it sound like you have a grudge against new properties or H&L packages.

I’m not sure I’d call it a grudge, but simply that some properties are better for investors than others. And, as you just saw in my response to Cherry, if you have the skills/knowledge/wherewithal to be able to build…[Read more]

Hi Steven,

I do somehow get the impression that you make it sound like you have a grudge against new properties or H&L packages.

I’m not sure I’d call it a grudge, but simply that some properties are better for investors than others. And, as you just saw in my response to Cherry, if you have the skills/knowledge/wherewithal to be able to build…[Read more]

Hi Steven,

I do somehow get the impression that you make it sound like you have a grudge against new properties or H&L packages.

I’m not sure I’d call it a grudge, but simply that some properties are better for investors than others. And, as you just saw in my response to Cherry, if you have the skills/knowledge/wherewithal to be able to build…[Read more]

Hi Steven,

I do somehow get the impression that you make it sound like you have a grudge against new properties or H&L packages.

I’m not sure I’d call it a grudge, but simply that some properties are better for investors than others. And, as you just saw in my response to Cherry, if you have the skills/knowledge/wherewithal to be able to build…[Read more]

Hi Cherry,

Personally, I prefer new house with big land. :)

If you are at the stage where you can afford to build them for yourself (and not be taking some solution product from a H&L developer), I agree with you, Cherry.

;)

Benny

Hi Investor,
If you read all of the words carefully, you will see I was using words like “IF”, “might”, and “could be”.

That means, this was not reality I was describing, but an example of what “could be”. The underlying lesson was that some areas of Goulburn might have a majorly different vacancy rate than other areas, and that you do need…[Read more]

Hi Jaya,
When buying an existing house, I would always get a building inspector to take a look. Maybe a plumber too, if you have a special concern with plumbing.

Re the land – I always like older homes that have big land – especially if the Council is about to re-zone. Going from 17.5 to 30 is nearly doubling the number of houses in an…[Read more]

Hi Investor,

for example Goulburn has about 61 properties for rent, shows cash flow positive which is good but with that many properties on rent whats the chance of someone wanting to rent my property? Should we avoid areas like this?

Good question – I hope the following thoughts might help you:-

It is not so much the number, but more the…[Read more]

Have you been approached by a company wanting to sell you an OTP (Off-The-Plan) property (i.e. it is not built yet, but is soon to be built)? Did they cold-call you? Did they suggest that “The Tenant and the Taxman can make you rich, and help you send your kids to Uni, etc”? And, they likely also asked if you have had your PPOR (your own…[Read more]

Hi Jaya,
That almost sounds like “How long is a piece of rope?”

If you can share what you are wanting from this house, and any/all constraints, like – is it for investment or “own home”, any particular location, return required, can renovate or not, etc it should allow us to give a more meaningful answer.

Don’t forget, we don’t know you -…[Read more]