Hi Aque,

Any equity loan I draw from these IPs for my PPOR will be tax deductable.

As I understand it, such a withdrawal would not be deductable. The purpose of the loan determines deductability, not the asset which the loan is drawn against.

Your following comments indicate that you KNOW that, so I think your first (quoted) statement was…[Read more]

Hi JZ,

1 bedder unit for $320K that looks like it might be able to fetch around $320 per week rent.

Those base numbers don’t sound like +ve cashflow to me – it is only a 5% Gross return. Surely body corp costs, Rates, Insurance, RE mgmt fees would take this into heavy -ve geared territory, wouldn’t it (??). Or is the calculator doing tricky…[Read more]

Hi Wiwin,
A quick primer on average and median – average is derived from all sold prices added up and divided by number of properties. Averages can be skewed if sales are heavy (say) at the top end. e.g. imagine a suburb that has 5 houses sell last month – 2 at $250k, 1 at 300k, 1 at $400k, and 1 at $600k. Total is $1,800k – divide that by 5…[Read more]

Hi Brm,
There are a number of MB’s on here – I’m sure some of them will stop by to help you out. Meantime, do read this to help with some of your questions (some you may not know you have…)

https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/

Chase down the links in each post to read about that…[Read more]

Hi brmiau,
Oooh – watch out for this bit :-

My mortgage broker says I can borrow $280k without LMI or around $400k plus $30k for LMI and fees with the loan being 100%.

Your MB might be looking to cross-securitise your IP with your PPOR. DON’T go that way. Ask them how many separate mortgages are they looking to set up? If the answer is…[Read more]

Hi F,
Just a couple of thoughts that come to mind….

Does the location matter more than the amount of units? What land content is appropriate?

Probably demand is the big factor – you can have a great location, but if the block is unpopular (for whatever reason), it will likely remain so. Find out as much as you can re demand for these…[Read more]

Hi Ajay,
That sounded like a pretty good gross return, until the body corp costs hit. Rates shouldn’t be much more than $2k, so the body corp costs must be $4k? What do you get for that? Is there a security guard, or just electronic gates? Seems way high….

Re Eagleby, I have always thought of it as a “cul-de-sac area”. That has both…[Read more]

Hi Kurtuk,
As the others have already said, the “numbers” will tell you.

My initial thoughts were buying two places at $350k so that I can diversify etc, but this also means I will pay double stamp duty,

The Stamp Duty subject brings up an important point – first, each State sets its own Stamp Duties. I used Qld figures to get this :-…[Read more]

Good thoughts already !! Kudos.

Though your Title refers to apartments, I’m replying below as though this is shared accommodation in a house – most of these could apply to an apartment too….

Add to that the numbers may look really good with (say) 4 students paying $160 a week – beauty $640 a week instead of $450 to a family group. But…[Read more]

Hi Josh,

there is a rental guarantee of 470 for the first year,

That is one amount that you will have paid for in the price, for sure.

But right now, the BEST thing you can do is to check comparative units in the same area (not in that development) and see whether $470 a week is “about right”.

If it is way over the mark, that sends you…[Read more]

Hi tjamuna,

i am looking to borrow as much as i can without realizing equity ! !

Does that mean you are looking to take out a Personal Loan then? Or use a credit card? Is there a particular reason you DON’T want to draw on equity?

Benny

Hi Chief,
Have you got something to share with us? Did you end up investing there yourself? How has it gone? Does Danang still “look” like it did 8 years ago? Do tell,

Benny

Hi Hiiph,
Welcome to this place. Has your brother also registered with us? There have already been some great answers posted – kudos to the posters *applause*

I figured your brother might also get some benefit from this link :-

https://www.propertyinvesting.com/forums/general-property/4349450

It endeavours to group together a lot of…[Read more]

Hi PW,
That link to the Sage property was a good one. I was impressed by a couple of things – the low vacancy rate, and the “look” of the apartment (IF the photo is of an apartment selling for $345k, that is). It appears to be genuine good value.

Add Mike Matusik’s words, and overall it looks pretty good – almost unbelievable. But then…[Read more]

Hi SAH,

My main question was about the new unit market? Any thoughts,

Although Units often have a Gross Rental Yield higher than houses, their Nett Yield is not often positive unless you buy very well. And purchasing OTP is not usually the way that one finds positive yields. I’d be interested to see if these ones are any different – can you…[Read more]

Hi Hot Stuff,
As a landlord who was (once) quite unfamiliar with gas hot water, I wasn’t aware of a Pilot light, and would have been the same if I was renting a place for myself. So, I think don’t blame the tenant right off – here’s who I would be asking some hard questions of right now :-

Property manager calls me and says that the unit will…

[Read more]

Hi Wiwin,

I don’t really understand how people can buy 14 ip in a year’s time.

Well, not quite 14 in a years time, but Darryl did a pretty impressive job none-the-less. Take a look :-

https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/#post-4697977

While you are in that thread too, there are a num…[Read more]

Hi Derek,

Is there a way she could keep both properties and take out a new mortgage with any existing equity even though she is no longer working or would the best idea be to sell them both or keep one and sell the other?

MIL has some good choices there. You don’t say, but is it likely that she owns these two outright? Since she is unable to…[Read more]

Hi all,

First off, let me recommend that you go to the Home page, look on the right side (under Private Messages) and look for the “Strategies Explained” area. The first strategies are “Positive Gearing” and “Negative Gearing”. Have a read of both of those.

Just today, the forum underwent another transformation – what used to say “Strategies…[Read more]

Jeff,

do you have any one who you think can assist me on this?

I know a few RE agents, but none that I know frequent this place. I may mention your question to them next time we meet up – if any of them show interest, I will direct them to this place, and your thread.

Maybe other members might be able to help,
Benny