Hi Ronnie,

So using the same example if I was to put a 20% deposit on a $600,000 property ($120,000) does that mean I have instantly a equity of $120,000 and be able to use it to invest in another property?

You are sort of correct – but wait, there’s more….. :p

To be able to use ALL of that Equity, you would need 100% loan AND extra…[Read more]

Hi Deza,
It can drive you nuts – but don’t let it. First off, I’d say to check what you can of their words (e.g. call, or have a friend call, asking questions about “availability of houses for rent” – get as much data as possible, even invite them to post you stuff). What I am thinking is to determine the rental vacancy rate – how many homes…[Read more]

Hi postup,

I’d like to ask what your due diligence involves actually – is that history on the property, depreciation schedule, flood reports, pest inspections, what else?

Those items you list are a good start. Due diligence is all about finding out as much as possible (especially the stuff NOT covered on paper in a contract). So due dil…[Read more]

Hi bla,
Sounds like a great start – and, in addition to the other worthy replies, have you had a trawl through this thread?

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

It may be one you have seen earlier. I like it because it is not that old – it shows how a young bloke had worked…[Read more]

Hi Glen,
If chasing +ve cashflow, this one isn’t it, surely?

Currently renting for $455
Body Corp is $1500 per quarter
Rates $250 per quarter
Water $200 per quarter

Even without Insurance, Maintenance and any RE fees, the fees shown above are costing $150 a week !! *Eeeekkk!!* That’s one helluva impost right there. Not looking like being…[Read more]

This has been the loose advice from a few accounting type friends, who believe if you primarily operate as a developer, then you do not pay CGT. I will pay, however, income tax, of which a Company is capped at 30%.

Hi JimBo,
That is how I believe it works too – but then, I am NOT an adviser of any sort, so this is truly just an opinion.

Benny

Hi Richard,
Would you expand a little on this please :-

Wouldn’t be buying in Morayfield in a month of Sundays.

Care to share?

Benny

Hi Jamie,
Personally – I prefer land. You can do more with it and don’t have to deal/pay for pest body corp fees.

WHen I first read that, I thought “Why you were ONLY buying land?” But I think in hindsight you were referring to buying a house (on its own land) over a unit, yes? (My choice too, BTW).

Benny

Hi Phil, and Ches too,

I’m just wondering what are the best resources for finding information about how certain suburbs are trending and changes in the market?
I have heard of Residex, RP Data, SQM, info on realestate.com.au
Or is it best getting in and amongst the areas I am interested talking to agents and going to open houses and so on?

M…[Read more]

Hi Jas,
Ah, a depreciation schedule – yes it all makes sense now.

Re growth in Morayfield, I don’t know the area well, but I note there is stacks of land around, and there seems to have been quite a “push” in that area over the last number of years. That could have affected the supply/demand curve of course. Is it still growing? Are new…[Read more]

Hi Phil,

Is the growth potential related to new things coming to the area ie. Schools, shopping, transport?

Anything that increases demand for a property in an area will lead to a lift in price growth. With more demand, supply can’t keep up, so buyers have to pay more to “get in”. So schools, transport etc can certainly have an effect. So…[Read more]

Hi Goosehead,
So much depends on answers to a few more questions :-

If your property is in Melbourne or Sydney and it HASN’T grown, I’d be asking serious questions re “Why not?” This could indicate it is time to part company. But if your property is elsewhere, then “It depends…..”

I am seeing early signs of price rises in Brisbane, and…[Read more]

Hi Frangypani,
Wow – the options don’t look too bright right off the bat…. But the “holiday rental” might be a path worth researching….

Your story could be my own – but my property is in the Gold Coast Hinterland (in the mountains). We were losing steadily until we bit the bullet and made it into Holiday Letting. Now, we are NOT on a…[Read more]

And Stamp Duty on mortgage is a “Borrowing Cost”, so can be reclaimed via Tax relief over (I think) 5 years – along with myriad other borrowing costs.

Anything to do with having the loan happen is a borrowing cost – e.g. application fees, Stamp Duty on many bits and pieces, LMI, mortgagee’s Solicitors fees, searches, etc.

Benny

Hi Razoo,
Welcome aboard !! I gather from your wording that you are wanting a highish yield, perhaps in preference to Capital Growth? Or do you hope to have both – maybe forcing Growth via reno, development, etc. There would be many questions that should arise before launching into this – like, what are your goals?

Have you talked with…[Read more]

Hi Zojieen,
Welcome aboard – that is an interesting bunch of questions you have put to us. I attempted to see what you were watching.
Your link didn’t go to a specific RK video, but I went looking and watched two that I found.

This one (8 minutes long) :-

..does add a few figures. From…[Read more]

Hi Isabel,
I think you may have already telegraphed the answer :-

someone who charges a bit more but has been really responsive and thorough with information (this is important as its our first property

It is great that you have secured a tenant, but why give the useless PM any more of your money? As an absentee landlord, I would certainly…[Read more]

Hi MM,
Good to hear you are breathing once more…. :p You appear to be in really good shape – you will look back in 10 years and give yourself a huge pat on the back !! But wait – you could even do that NOW !! What you already have is a nice base to start from.

Do catch up with this thread…[Read more]

Hi Ms New,

Richard >> there are plenty of other better suburbs depending on what you wanting to achieve.
Ms New >> I am currently renting and I hope to be able to buy my PPOR in say 5-6 years. So CG is more important in my situation.

Richard’s point is well made !! It all depends on what you want to achieve, and by when? The HOW comes…[Read more]

Hi Higherdale,
The only formula I know that would calculate that is to write “HEAPS”. When developers can build up to 8 stories, the land values go into the stratosphere. Given that your group (assumedly) are talking about this, it may be worth having two or three of you spending the time (and $$) to learn all about it for yourselves.…[Read more]