He didn’t tell us that we had to use our current lender for the equity loan but I guess it kinda became an assumed thing.

It seems you have an existing mortgage on your home, right? If so, then you won’t be getting an extra equity loan from another lender (that is getting into 2nd Mortgages and such complexities). But I personally kept my I…[Read more]

Hi Novice,
Welcome aboard !! It is good to see you getting in and posting – that is what a forum is best for (sharing ideas and information). I hope our members are able to help you out.

But first, please provide us with the Council involved – different laws and by-laws apply depending on which State and/or Council is involved. Without…[Read more]

Hi Novice,
Welcome aboard !! It is good to see you getting in and posting – that is what a forum is best for (sharing ideas and information). I hope our members are able to help you out.

But first, please provide us with the Council involved – different laws and by-laws apply depending on which State and/or Council is involved. Without…[Read more]

Hi Shaun,
Seems to me thay are already stata titled. I think you are wanting “community title” (?) – but the obvious questions would be – is there any gain in changing back? Is it even allowed?

A Council will want to be paid for – garbage collection, provision of water, sewerage, and a host of other things for 3 units whether you group them…[Read more]

Benny – is this an argument, or a discussion, we’re having? I’m confused!

Yes!!

*roflmao*

Whoah !! There’s the clue:-

Or it could be something more structured and elaborate, like that given by a member of Australian Valuers Institute (who give valuations) or the American Society Of Appraisers (who give appraisals).

Is it simply a matter of semantics (US vs Aus)?

Does Australian Valuation = American Appraisal? And vice…[Read more]

Whoah !! There’s the clue:-

Or it could be something more structured and elaborate, like that given by a member of Australian Valuers Institute (who give valuations) or the American Society Of Appraisers (who give appraisals).

Is it simply a matter of semantics (US vs Aus)?

Does Australian Valuation = American Appraisal? And vice…[Read more]

Hi Rillanon,

The plan of course is to get a discounted price though o hopefully we can get it discounted enough to cover all those costs.

You may be able to do that, but it will remain locked in “future Equity” until your next valuation – at which time, you might be wanting to take some as a Deposit on another IP… ;)

They say “You make…[Read more]

Hi Fred,

I was thinking that the setup costs was paid “separately” and I didn’t calculate them into the rental income from the property it self.

Yeah, and I’d say you are right – we usually refer to these as “Deposit and Costs” and they are paid separately – upfront. Thus, they are not ongoing, and don’t need to be covered by the rental incom…[Read more]

Hi SydneyGuy,
Corey said it so well :-

It’s very common for those buying in these large estate areas to see limited growth indefinitely and stagnant rents – be careful.

By replicating what the developers are doing (but without their cost-savings by building in bulk), you will be limiting yourself severely. In short, you can do a lot bet…[Read more]

Hi SydneyGuy,
Corey said it so well :-

It’s very common for those buying in these large estate areas to see limited growth indefinitely and stagnant rents – be careful.

Have a bit more of a “read around” – start with this article – it is a classic :-

https://www.propertyinvesting.com/how-to-invest-in-real-estate/

Benny

Hi RA,
Just a couple of weeks back, the forum was discussing a similar subject. Note that the linked thread started about 5 years ago, but take note of the varying comments, including one poster who says “Even if you bought the unit for $1, you could still be losing money!”

Are they right? I don’t know – but here is that thread…[Read more]

Hi Ticker,
From what I recall, the States (or is it Councils?) each have a differing view of Granny flats. To be able to help, we would need to know which State (or Council?) your granny flat is in.

I have seen that “granny flat” information mentioned in some posts recently, but couldn’t find them just now – if others can, please add the…[Read more]

Hi Steve,
Thanks for the clarification. The bottom line does it for me, but I am sure some others will also benefit from your very knowledgeable and informative answer. I tips me lid to you… ;)
Regards,
Benny

Hi Pepper,
Welcome to PropertyInvesting.com – I hope you find lots of worthwhile information to guide your steps.

Re your question (ocean views vs flat lot) I would first mention that I don’t know Perth (I’ve never been there). But some thoughts re Real Estate are universal, so my thoughts will be ignoring the city and just comparing the…[Read more]

Hi Pepper,
Welcome to PropertyInvesting.com – I hope you find lots of worthwhile information to guide your steps.

Re your question (ocean views vs flat lot) I would first mention that I don’t know Perth (I’ve never been there). But some thoughts re Real Estate are universal, so my thoughts will be ignoring the city and just comparing the…[Read more]

Hi Steve,
Always good to have you posting on here. I was particularly interested in your recent comment :-

Most currency gains, as required per Accounting Standards, are unrealised at this time and sit in the FCTR rather than the P&L.

I am not conversant with the acronym FCTR, but the word “unrealised” seemed to mean (to me at least) that…[Read more]

Hi Fred,
No problems in starting out not knowing too much – we all start out that way. This is where there is an opportunity cost in following the Nike brand (“just do it”) as that way can bring you unstuck.

The first thing that came to my mind is positive geared properties, a few renos here and there to up the equity buy another one etc.

…[Read more]

Hi Fred,
On first glance, your find has good possibilities. And yes, the likely outcome (on first glance) is to be positive geared. How positive? Well, your Gross Yield is over 11% (14,560 divided by 130,000) which is great – but let’s look deeper:-

Purchase price = $130k
Costs to purchase (estimate) = $4000
Borrowing Costs (estimate)…[Read more]

Hi Fred,
On first glance, your find has good possibilities. And yes, the likely outcome (on first glance) is to be positive geared. How positive? Well, I don’t know – let’s look deeper:-

Purchase price = $130k
Costs to purchase (estimate) = $4000
Borrowing Costs (estimate) = $2000

In reality, I don’t what Purchase costs a regional…[Read more]