Hi Codie,
One of those little traps is wrapped up in the Phrase “Jointly and Severally Liable” (think of severally as meaning separately – which it does).

In essence, each of your group of 4 is considered to owe ALL of the debt for a property (separately liable) – but, if income producing, only one quarter of the rent is allowed to be…[Read more]

Hi Craig,

An email hit my inbox today – in it, it had this section re units being built currently:-

In 2011, we added 12,000 units to the market in Sydney, Melbourne and Brisbane. In 2017, we’ll be bringing 52,920 to market.
Between 2007 and 2011 we built less than 60,000 units. Between 2012 and 2017, we’ll build close to 200,000.

This was…[Read more]

Hi Suave,
No second bathroom eh? Any chance of building an ensuite first? ;)

I don’t know if a week is required (but then, this was never my trade – you may well know more than I). What I would be doing is checking with a tradie just how long they say it would take, then allow a day for contingency. Get two or three quotes and comments…[Read more]

Hi Dean,
Well, I reckon they “could” be right:-

“Weekly rents across the combined capital city measure increased 0.3% in February however rents were unchanged over the past 12 months”

If they grew in February, but had previously dropped 0.3% at some other time in the previous 12 months, this has the nett effect of staying the same over the yea…[Read more]

Hi Zen,
A great answer from Corey – to expand a little more, it is land that rises in value while buildings depreciate. So when we read of Houses appreciating by 10%, it is usually houses depreciating by 5% and the land gaining 15%.

Project that thought into units, and you have the bulk of your value in a depreciating asset, and VERY…[Read more]

Hi Pimobpi,
Hehe – I read all the way through – great post with a very timely message.

Benny

Hi Jprop,

Property 1 will provide me with a rental yield of around 9% (leased until Sept 2016) but will chew up all my extra cash if i purchase it.

Sounds like a really good start with a 9% yield. But what is it about THIS place that has such a good return? You say it will take all of your extra cash – is that because you will need to spend $$…[Read more]

Hi Jprop,

Property 1 will provide me with a rental yield of around 9% (leased until Sept 2016) but will chew up all my extra cash if i purchase it.

Sounds like a really good start with a 9% yield. But what is it about THIS place that has such a good return? You say it will take all of your extra cash – is that because you will need to spend $$…[Read more]

Hi TJ,
The third post in the linked thread below goes into that very question. Have a read and see which way fits best with you:-
https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/

After that, do check out the other posts too, as a whole host of different subjects are presented.
Benny

Hi Kuna,
It is awesome to read of one so young who is already as far ahead as you are. Have you done well? Absolutely – that is a great start. Where do you go from here?

Ah, now that is where YOU come in. In short, it is your call. You have set yourself up to be able to advance in several possible directions. What direction do you…[Read more]

Hi Kuna,
It is awesome to read of one so young who is already as far ahead as you are. Have you done well? Absolutely – that is a great start. Where do you go from here?

Ah, now that is where YOU come in. In short, it is your call. You have set yourself up to be able to advance in several possible directions. What direction do you…[Read more]

Hi Vardy,

If I was to rent it out and then sell it, would I pay CGT on the original purchase price, or the price used for the seperation settlement?

Since this was your PPOR, there would be no CGT to be paid. BUT, if turning it into an IP, then get a valuation at the time, as you may be up for CGT down the track (from the time it was made into…[Read more]

Hi Jacqui,

I also notice it’s a bit of a mission to find a particular member now. Once upon a time there was a link that took you straight into members and you can search by partial username.

My question re above to Admin received an answer – in short, he agreed it once did have a link, but it was removed deliberately when PM spamming was a m…[Read more]

Hi Jacqui,

I also notice it’s a bit of a mission to find a particular member now. Once upon a time there was a link that took you straight into members and you can search by partial username.

My question re above to Admin received an answer – in short, he agreed it once did have a link, but it was removed deliberately when PM spamming was a m…[Read more]