Hi Asou,
It is good to know that market prices have moved upward. That provides hope of a better outcome for you.

Is the valuation by bank always significantly lower than the mkt price?

A valuation for finance can often be below a market appraisal conducted at the same time. A bank has their $$ on the line, so their vals tend to be more…[Read more]

Just realised I had missed this bit :-

you want to aim for an ROI that is 1 percentage point above the mortgage…

OK, so let’s re-evaluate ……
Mortgage Interest stated was 4.5%, so let’s say Rental Income is 5.5% (on a $300k IP, that is $330/wk or 16,500pa)
Mortgage still $13,500 and expenses ran to $3000 except for Maintenance – so Total…[Read more]

Hi Bjoern,

guess I underestimate the effect of deductions a bit ;)

They certainly help – BUT, did you notice that even with expenses of about 1.3% you were still positive geared in my example?

So the “1% rule” looks like it can stand alone, even WITHOUT deductions. Of course, this depends on many things – it will not work in all…[Read more]

Hi Barlow,

Apparently i will be eligible for an offset account in 12 months, rather than 2 years, as i an get offset attached as long as fixed interest period is no longer than 12 months.

Hey, that is a great option to know about – thanks for sharing it!!

Did you gasp when they told you the Break Cost? When I looked at breaking mine, I…[Read more]

Hi Bjoern,

Is it really possible to get a property to be positively geared with a return that is only 1% (or even 2%) above the interest rate for the mortgage?

I haven’t actually read/heard how Steve does that – but one thought would be that “non-cash deductions” can help cashflow. So much so, that you can own a negative-geared property and…[Read more]

Hi Smally,
Perhaps this thread can be of some use as you find your way:-
https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/

Benny

Hi PS,
As I understand it, the AGE of the property gives a clue to the likelihood of asbestos. I own a house built with “hardiplank” (James Hardie Industry created this weatherboard, and in the early days at least, it did contain asbestos). In previous checking, I think I recall anything created in the 90’s is OK, late 80’s may be OK, but…[Read more]

Hi Smally,

Welcome aboard – I hope you find your visits here useful in every way.

I have been looking around for my first investment property.
This is all very daunting and I don’t know which way to turn when looking on line.

Given that second line, I wanted to attempt to “bring you down to earth”. That is to say, WHAT are you looking to b…[Read more]

Hi Smally,

Welcome aboard – I hope you find your visits here useful in every way.

I have been looking around for my first investment property.
This is all very daunting and I don’t know which way to turn when looking on line.

Given that second line, I wanted to attempt to “bring you down to earth”. That is to say, WHAT are you looking to b…[Read more]

Hi Chat,
Awesome to see you working it through. Your diligence is going to pay you handsome dividends, so do keep it up.

To your concerns :-

1. My fear is that once this interest only period ends – the bottom has fallen out.

Good thought – now check things out to see if “the end of an IO period” is actually THE END – hint, there are w…[Read more]

Hi Barlow,
Terry’s idea is (I think) a good one – call your lender and ask for the “Break Cost” of your Fixed Loan (but be sitting down when they tell you – ;)

The Break Cost increases as the difference between Fixed and Variable increases (and there has been a 0.5% drop in the Cash Rate in the last 12 months – which may or may not have…[Read more]

Hi Coogee,
As Jamie said, asbestos is still quite common. The places where yours was found are in quite inaccessible areas – i.e. inaccessible to most people.

Where asbestos is so dangerous is where a youngster might “play” – digging at walls with sharp objects, etc before they are old enough to know “Don’t do that!” In your case, the…[Read more]

Hi Chat,
In my understanding, any cash withdrawals from a credit card are an IMMEDIATE instigator of Interest, and often at a higher rate than other purchases. e.g. a credit card might have a 17.9% rate for purchases, but a 27.9% rate for cash !!! It bites, so I am glad you asked first – but don’t just take my word for it – check that I am…[Read more]

Hi JJ,

Stegbar installed the glass windows and doors to my property but they were not been paid by the original builder

I don’t KNOW, but I would think QBCC should be able to do something here – aren’t they “taking over” to basically make good what the first builder did/didn’t do? I would think that would include making payments to those…[Read more]

Hi Corey,

It’s related to building work over a certain threshold ($12,000 if I remember correctly), as per norm.

Ah, thanks mate !! Yes, that does sound like “as per normal”. I have turned off the pacemaker now….. ;)

Benny

Thanks for all of you who have added your thoughts above. What a huge selection of positive comments after what sounded like a huge effort on everyone’s part, whether a presenter or an attendee.

Just reading this thread has fired me up – but “being there” would mean so much more. I must make the effort to get to Melbourne if this were…[Read more]

Hi Xenia,
Wow !! After a bit of a look, it seems to indicate that if I was a landlord in SA, I cannot paint my own IP, nor replace a broken paling in a fence, and I think it also mentions Paving, so I can’t fix a broken paver….

I sincerely hope that no other State Govts are thinking of following their lead!! The quote “Bureaucracy gone…[Read more]

Hi SM,

It’s in a large block of 200+ high rise and It’s not due to be completed for about 2.5 years

This sounds like the kind of property that they sell to overseas buyers. Could that be a market for you? Maybe approach Ironfish to see if :-
a) This can be onsold by them to an overseas buyer, or
b) Can you onsell it to someone else, and if so,…[Read more]