Here’s a time capsule from Scamp (from his first post in May 2008)
“Don’t invest into property : The australian market is CRASHING !!
Can’t you see that 9 times annual wages per house is not sustainable and that the bubble is already bursting?
It’s more than evident that the market is 50% overvalued. Take this from a seasoned property i…

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5% to 8% commission from builder/developer per property;

200% to 300% of what a Real Estate Agent gets for selling a property? Sheesh !! Nice work if you can get it (and can find someone else who wants to pay for the excesses!!) A spruiker for sure.

Benny

Hi Colin,

I have had clients tell me that bank staff have told them that redraw and offset are the same thing.

That is a HUGE danger then….. How do we reach the masses to warn of things like this?

I have dealt with many Bank people over the years – the major problem is that the good ones are moved out and upward, and “juniors” are shifted…[Read more]

Since this scenario is a common one, I wanted to “bump” this subject back into view.

Many banks talk to people of Redraw, and “Yes, no problems, you can just borrow the money back again if you need it!” In our ignorance, if we don’t check with others who KNOW, (like Richard, PLC, Terryw, or Catalyst above), then we really can create a rod for…[Read more]

Hi Scott,

Keen to understand if this is a realistic option to consider for positive geared options.

This totally depends on WHAT and WHERE the holiday rental property is. e.g. if Gold Coast, then holiday times can command a good rate BUT it can languish through the rest of the year, unless you have the time or ability to manage an airbnb style…[Read more]

A further hint for your mate, DM – if the spiel is about buying a new property (OTP or newly built) then there are FAR better ways to make it in property investing than that.

And, if they are willing to fly him “for free” to somewhere else to buy, then warn him to RUN A MILE as quick as he can, ;)

Benny

A further hint for your mate, DM – if the spiel is about buying a new property (OTP or in a new estate) then there are FAR better ways to make it in property investing than that.

And, if they are willing to fly him “for free” to somewhere else to buy, then warn him to RUN A MILE as quick as he can, ;)

Benny

Thanks Terryw,
I Googled the authors’ names and up came the book on Ebay. Looks just like I remember it. And thanks too, for the warning about LOC’s.

http://www.ebay.com.au/itm/H-GILL-S-THERRY-HOW-TO-OWN-YOUR-HOME-YEARS-SOONER-/371417618753

Even today I think it is worth the few bucks one might pay to get it. I am sure they had many…[Read more]

Hi Bjoern,

Or are there other/better ways to use credit cards?

There was a book out about 15 years ago that talked of some interesting ways of using a credit card. Back then there was no Offset Accounts, but there was some kind of loan that worked in a similar way. I will talk of using an Offset Account as it makes more sense today.

The…[Read more]

Hi Bjoern,

Or are there other/better ways to use credit cards?

There was a book out about 15 years ago that talked of some interesting ways of using a credit card. Back then there was no Offset Accounts, but there was some kind of loan that worked in a similar way. I will talk of using an Offset Account as it makes more sense today.

The…[Read more]

Hi B2,

I was glad I was able to provide a few thoughts that might work for you.

Now that I know this was a new built house, could it be that this place is in the right location to be desirable as a Corporate rental? I don’t know how many companies move staff into Emerald, but corporate rentals usually want :-
1. Properties in a central…[Read more]

Hi B2luck,
Your post today indirectly led me to have a read about those regional areas that have mining as one of their local businesses. I must say it was interesting to read the comments by many who seemed to have in-depth knowledge of those areas in regional Queensland. Your post that led me to the mining thread was this one…[Read more]

Hi Kevin,
The Investment Detective link has been corrected. Admin has also made changes that point any broken links to the “store” instead of coming up with a bad link. This helps, as it guides new readers to “What is available now” – hopefully some newer products might have taken the place of those older ones.

Tammy (@mstamus) found one…[Read more]

Hi Kevin,
The Investment Detective link has been corrected. Admin has also made changes that point any broken links to the “store” instead of coming up with a bad link. This helps, as it guides new readers to “What is available now” – hopefully some newer products might taken the place of those older ones.

Also, as you might have seen,…[Read more]

Hi Storeybuilder,

Thanks for the replies, but I fear this has become quite confusing to everyone.

Part of the confusion arose because one poster had addressed you, when they should have addressed Lisabellan. I have corrected that now – hopefully, that will remove some of the confusion.

In YOUR case, SB, as several have said, you CAN have…[Read more]

Hi Mike,
Re this :-

I’m looking at an Interest only loan and a 90% LVR. Is this a wise decision with rates likely to rise in the next couple of years or worth going for a 20 deposit or 80% LVR.

Borrowing the maximum you can borrow allows you the maximum flexibility. A smart move would be to set up an Offset account against the Mortgage a…[Read more]

Hi Mike,
Re this :-

I’m looking at an Interest only loan and a 90% LVR. Is this a wise decision with rates likely to rise in the next couple of years or worth going for a 20 deposit or 80% LVR.

Borrowing the maximum you can borrow allows you the maximum flexibility. A smart move would be to set up an Offset account against the Mortgage a…[Read more]

Hi Bella,
Add “Depreciator” into the mix too. Last I heard, their schedules cost $550, but that was a few years back so do check their current pricing. I have used them and was delighted several times. I also see other investors I know adding their kudos too, so my recommendation is not alone….

Benny

Hi Brizza,
There is not enough info posted to come up with an accurate answer, but consider these points :-

If looking to purchase another IP(s) then you need from 15% to 25% of the value as Deposit and Costs. The remaining 75% – 85% will be the mortgage on the new IP.

So, your question needs answers to two things –
1. How much ready…[Read more]

hi N2I,

If I sell, I can use the sales $$$ to pay down the mortgage on the new PPOR and start a family.
If I rent it out as an investment, it will be a positively geared property giving me about $900

Since you have paid so much off the old PPOR, it might be financially wiser to sell (with NO CGT to pay), and use the funds to pay down the new…[Read more]