I read both posts. I now realise that buying a $338K place for about $330/week is not ideal on a $200K loan. It would be much wiser to haggle the price to $318K, and aim for a rent of $350 upwards. At least then I’ll be heading in the right direction

Yes, you will – but think bigger again – if the $338k property can’t return $450+ per week, g…[Read more]

Hi CS_R Lewis,

Are these properties geared so positive that its funding all their line of credit equity loans?

In a nutshell, YES !! But there is a longer answer, so stick around… :p

First off, I wanted to say that you are already in good shape with $150k in Equity, so well done already. Second, I would not be buying an apartment…[Read more]

Hi Savannah,
I agree with the Realtor. Certainly, if the other rooms look good, then the kitchen floors will “stand out” even more. And the major problem I see is in the buyer’s mind :-
e.g. “Ooohh – look at those tiles – they look quite dirty. I don’t know how much it would cost to clean them, or (horrors) replace them !! Could be $5000 or…[Read more]

Hi PLC,
Of course, you are correct – “running the numbers” should always be done prior to making such a move.

My response was another option (as opposed to “the ONLY way”) but it certainly may not be the best option – unless there was no other way. Then, the choice then comes down to
“Do I walk away from a screaming-hot deal because I…[Read more]

Hi Becs and Sasha,
Great to hear from both of you as MAP students. I thought Sev’s question was an intriguing one, as the MAP goal was (correct me if I am wrong) to become a “property millionaire” within 12 months. i.e. to have $1m more in assets than you did when you started the course – something like that?

Now, Sev’s question came at it…[Read more]

200pw was for the property in ravenswood which is 130k. The property in Georgetown is 100k with 150pw

So, which has the better yield? We don’t know the Nett Yield until all costs are known for each – but the Gross Yields are there :-

Ravenswood – Gross Yield is $10400 divided by $130k x 100 = 8.0%

Georgetown – Gross Yield is $7800 divided by…[Read more]

One other thought – did you see this? It may hold some clues for you :-

https://www.propertyinvesting.com/topic/5010490-tasmania-is-it-worth-it/

Benny

Hi Lorella,
Do you have an idea of the kind of rent the Tasmania properties would fetch? To be able to have it pay you something (be positive geared), the rent needs to cover the mortgage, insurance, rates, maintenance, and Real Estate Agent fees (i.e. all costs) and STILL have a bit left over.

To do that, with a $150k property (and mortgage…[Read more]

Hi Kennedy,
Remember this:-

When meetings are logged on the forum, do make an effort to go attend – you see, it is when mixing with others who have already done what you wish to do that you will learn heaps,

Well, if you can go to the Gold Coast or Sunshine Coast, do check out these new posts today :-
Sunshine Coast – h…[Read more]

Hi Pollardis,

The only way that is possible if you have another property you can borrow equity against

I agree with you – the wording probably should have looked more like this :-
The only way that is possible if you have another property with equity you can borrow against

But then, I don’t believe that is the ONLY way – with the smallish…[Read more]

Hi Pollardis,

<blockquote=JamieM>The only way that is possible if you have another property you can borrow equity against
I agree with you – the wording probably should have looked like this :-
The only way that is possible if you have another property with equity you can borrow against

But then, I don’t believe that is the ONLY way – with…[Read more]

Hi Aru,
It sounds to me like this is a house you are buying to be your own home – is that right? Will it become an investment later, or do you plan to live in it for MANY years?

Some of the basics are the same (re getting a building and pest inspection, and checking what is happening around the area – new infrastructure, etc).

First…[Read more]

Hi Moggy,
As Australia has many different markets, it may be worthwhile to add just WHERE these properties are. e.g. if they are in a mining town, I think we can all understand why the first property hasn’t sold for the price you want.

Now, I don’t expect it IS in a mining town, but you see what I mean? The location and current property…[Read more]

Hi Sam,
Like Corey, I’d say “Don’t try to catch a falling knife!” Let it get all the way down to the ground, THEN pick it up – it is safer that way.

You didn’t say WHERE in WA – if the one you are looking at is in one of the mining towns, be VERY aware that a decision from YESTERDAY has Banks reducing the LVR of a loan for some particular…[Read more]

Hi Liam,

I LOVE every aspect of what I am learning and I am eager to discuss with everyone I meet being family and friends etc. I am repeatedly faced by scoffs and warnings and head shaking. IT DRIVES ME NUTS.

First thing I would suggest is that you don’t give them the power to affect you so badly. There is an old saying – something like…[Read more]

Hi Kennedy,
Welcome aboard the good ship PI.com. You have come to a good place :)

I wish I had been as driven as you at the age of 20. I didn’t find out about this stuff until I was in my 40’s !! I had an inkling, but I didn’t chase it back then. You’ll be sweet, because you are starting early.

I like @knightm‘s ideas – main thing…[Read more]

Hi Kennedy,
Welcome aboard the good ship PI.com. You have come to a good place. :)

I wish I had been as driven as you at the age of 20. I didn’t find out about this stuff until I was in my 40’s !! I had an inkling, but I didn’t chase it back then. You’ll be sweet, because you are starting early.

I like @kinghtm‘s ideas – main thing…[Read more]

About 20 minutes.

Very droll, Jamie !! Well done – put a smile on this dial…. :)

Benny

Hi Moggy,
I found some of the story a bit difficult to conceptualise. In particular, this bit :-

The other half decided to bridge between the two in the hope that the first property would sell in one year.

That “bridge between the two” comment means exactly what?

See, straight off from your words, I thought the other half had taken out…[Read more]

Hi Moggy,

I will not be fooled into borrowing to buying property as this only makes the banks richer …. You can try to out run the debt, but lose your job and the bank comes knocking for the keys. Never let emotion rule your head. Don’t buy anything unless you can pay cash for it including a house. Renting suits me just fine. The sharemarket is…

[Read more]