Hi RPI and Don,
Thanks to you both for your replies.

RPI – I have emailed you as requested. By all means reply (without ID) on forum. It is a subject others could do with knowing more about. Whatever you can add would be welcomed.

Don – a good point about FOI. That is not an area I have trodden – any pointers re “getting started”?…[Read more]

Hi Kurtuk,
Well, it seems that area can ask that sort of price, as I see (on the internet) many 2bdrs selling at that price and above. Even some 1 bdrs are asking near to $400k. Which is yours? If yours is a 1bdr, you might like to check this out :-

http://www.realestate.com.au/property-apartment-qld-bowen+hills-117474263

I don’t know…[Read more]

Hi Callie,
I can’t answer your question from a legal standpoint, but it does appear to me (I’m just a layman) as still having possibilities for your parents-in-law. I’m sure our financial gurus will be able to shed more light, but for now, this is what I see for them:

They have a heap of Equity in a valuable shared property. This Equity…[Read more]

Hi Kurtuk,
$400k could be a high price or an OK price, depending just where in SEQ the flat is. Have you seen similar flats in the block you are purchasing that confirm this price?

What about costs? Body Corp, Rates, etc. A 6.9% gross return sounds good, unless there are other costs that will chew major $$ to leave a low Nett return.

Benny

Hi Shibby,
Welcome, and good on you for entertaining thoughts of investing at an early age. Your post shows you already have a good grasp of what can be done, and it is now a matter of refining your thoughts to suit just where you want to be. The good bit is that, with careful planning, your journey can retain flexibility, allowing changes in…[Read more]

Hi bns,

Basically I’m asking the age old question PPOR 1st/ IP 2nd or IP 1st/ PPOR 2nd.

It certainly sounds like you are starting to understand things better, bns. Your questions are well-thought-out, and you mention several things that show you have been doing some research – well done !! I suspect you might have already seen this, but j…[Read more]

Hi Solomon,
Wow, from a Branch Manager that is pretty much unforgiveable !! One might expect such “advice” from an over-zealous new hire, but surely a Manager should have known better.

Thanks for sharing the story – for sure, it puts a red flag up for all. And I agree the large majority would have no idea that they were being misled.…[Read more]

Hi Paul,
Like others earlier, I also don’t know Reventon. I’m sure the majority of house and land marketers are kosher – but those that aren’t will typically display some tell-tale signs :-

1. They will check that your PPOR has sizable equity before wanting your business. This is so the excess equity in your PPOR can make up for an…[Read more]

Hi Chris,
Well done already !! I’m with JacM in suggesting you look at Interest Only. WHY? Well, “assuming” this is to remain an IP into the future, there is no need to hurry to pay it off, particularly if it is positive geared. It sounds like it would be positive if converted to an Interest Only loan.

Smart move using an Offset too – as…[Read more]

Hi Ty,
Welcome aboard !! It is great to see a young’un getting into this kind of thinking – and very smart to seek out “those who have done it”. It took me FAR more years than that before I received a “whack on the side of the head” thanks to Robert Kiyosaki and his “Rich Dad, Poor Dad”. I totally recommend that book to all young investors…[Read more]

Hi Woody,

I wanted to get a $60k LOC to leave sitting there until I find my next property. COmmbank want a contract first.

Could it be a LVR concern – that there is not sufficient Equity in your place? e.g. if $60k is a bit tight, they might be wanting to cross-coll your PPOR with a new IP (don’t do that !!).

Or, is it a DSR concern?…[Read more]

Hi Mercury,

Also, if i moved into this property as my ppr for 12 months, there would be no CGT?

As I understand it, this is true – but with some caveats:-
1. As long as you didn’t move into another PPOR (instead, go and rent), or, you sell it as you move out of it.
2. It retains PPOR status for up to 6 years (subject to 1.) after which you…[Read more]

Hi Camp grenada,
Wow, you appear to be in REALLY good shape !! With that amount behind you, I’d be thinking there would be a way to turn this ship into “positive geared” so that you can retain all properties. As you say, holding property in Sydney is usually a Growth play.

A little bit of confusion from me though – you mentioned two IP’s…[Read more]

Hi Mr LV,
What general area is your IP in? North, South, etc, or even a suburb if you are comfortable.

I had a property sold for me on the Eastside – I was NOT going to use the managing agent’s Sales Team (our Rental Manager was tops, but not the Sales team), so went looking for an alternative.

We compiled a shortlist by checking out…[Read more]

Hi SwiftE,
A good problem to have, for sure !! If you have $170k in Offset, then you would be CREAMING your mortgage (only paying Interest on $27k, and the rest of your monthly payment will be paying off principal). I would suggest you check out just how well your Offset is already working. It MAY be advantageous to NOT pay it off your Home…[Read more]

If both houses are similar in value, couldn’t he create a contract where the gifted house is chosen only after both houses have been built in order to avoid the builder to funnel most resources to his own property?

I like that thought, David – it prevents the builder from building “his” better than yours. Basically, YOU (Theresa) choose w…[Read more]

Thanks for all of the replies thus far. Interesting point about LMR and its restriction to 3 levels. On 809m2, would this allow something like 12 units?

@Nigel – “Once you know you could get a permit for the site a developer will certainly pay you a premium for that”
Hmm, the RE agent is talking like SHE already knows they CAN get a…[Read more]