[bullet46Participant@bullet46Join Date: 2011Post Count: 51]

November 27, 2015 - 8:53 am

Haha – love these types of things.

I once received one because the line on the clothes line was a tad loose. It was a brand new property so it had obviously stretched by a very minimal amount.

[bullet46Participant@bullet46Join Date: 2011Post Count: 51]

November 27, 2015 - 8:42 am

In this same situation myself and have been for years…
Tenant says they have no pets, then I find out they have 2 or 3 and they are inside. The lesson I have learnt over the years, across many of my investment properties, is to not sweat the small things. Ask yourself: are they paying the rent on time? have they ever missed a payment? are the pets causing any damage to the inside of the property? Then get photographic proof for when the vacate.

It is one of the joys of being a property manager – Mine are all managed by a real estate and I still have the same problem. Breach the tenant or evict them and it costs you money advertising the property, plus any agent fees. Weigh it all up is my opinion.

[bullet46Participant@bullet46Join Date: 2011Post Count: 51]

April 2, 2015 - 8:21 am

I cannot remember who my wife chose to have our insurances through, but I am pretty sure we pay around $900 per property/year.

[bullet46Participant@bullet46Join Date: 2011Post Count: 51]

March 14, 2015 - 8:33 am

Good question – the PPOR would probably be worth $440000… I will always regret letting that house go however, I really feel that by selling it I have kick started myself to invest further. I also look at the equity I have created in the duplex and can see it exceeds equity I had in the PPOR.

I know that by building up my offset account and then lashing out 20% deposits is probably not the best way to go I.e. Non tax deductible deposit. However, I like the goal of having to build up the offset account each time otherwise id probably spend money on stupid boys toys. I guess if I was 100% driven to not buy those toys then my best bet would be to run the properties at an increased LVR and form tax deductible deposits through releasing equity – something to think about I guess.

[bullet46Participant@bullet46Join Date: 2011Post Count: 51]

March 13, 2015 - 10:03 am

Hi Guys,

Almost 2 years later and I felt like writing an update:

I am now 27 years old, still married :) and no kids on the scene yet. I’m still property investing and here’s where I am up to:

Combined income is around the same $190000.

Investment property 1: (2012) Purchase price $245000, Bank valued at $305000 on I/O, secured by itself – rent $310 p/wk.
Unit 1: Build price $235000, Bank valued at $300000 on I/O, secured by itself – $295 p/wk.
Unit 2: Build price $235000, Bank valued at $310000 on I/O, secured by itself ($180000 in offset account and I’m living in the unit)
Investment property 3: Purchase price $269000, recent purchase, cash security term deposit of around $56000 – rent $320 p/wk

This is a very neutral type of set up for me and this is how I prefer to do it. I know that I could release some equity and pick another house or two, but I like the buffer they provide and I also like the cash flexibility per week.

• This reply was modified 9 years, 1 month ago by  bullet46.

[bullet46Participant@bullet46Join Date: 2011Post Count: 51]

February 27, 2014 - 8:55 pm

Yeah very true.

Might be a little extreme, but I have screen captured the photos of the dogs inside and made sure that her name is clear in each one. I guess it'll give me some evidence for when the time finally comes.

Jamie

[bullet46Participant@bullet46Join Date: 2011Post Count: 51]

February 27, 2014 - 10:55 am

That sounds like good advice. I was considering doing just that, attend the next inspection.

The property is located in QLD.

My property manager has suggested contacting the tenants and saying that dog hair was found inside and the owners are concerned that pets are being allowed inside. Then saying that the owners won't be looking to renew the lease if that is the case.

[bullet46Participant@bullet46Join Date: 2011Post Count: 51]

October 17, 2013 - 10:43 pm

Hey guys,

Exactly the information I was after, thanks!

Jamie

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October 10, 2013 - 12:44 am

Hi Jamie M,

Yeah that is exactly what I thought.

Just wasn't 100% sure if I was on the right path after reading previous comments.

Thanks!

[bullet46Participant@bullet46Join Date: 2011Post Count: 51]

October 9, 2013 - 9:41 pm

Woah, Jamie M – You have me thinking now…

We are about to move into one of our units upon completion. We'll own it outright, so does that mean I should have all my other Investment properties as P&I due to no longer having non-deductible debt?

[bullet46Participant@bullet46Join Date: 2011Post Count: 51]

October 9, 2013 - 8:52 pm

Personally, I like Newtown as I believe it's an area that is yet to climb in price. It is very close to the CBD and many of the homes are on large blocks which lends to the possibility of subdividing. I believe that as the boundaries of Toowoomba get pushed out with new developments, it'll be areas such as Newtown, North Toowoomba and South Toowoomba that will have good growth prospects. Every direction, except for East, is undergoing some development at the moment. North has the ever expanding Highfields (I sold a spec home out there recently and made good profit). South/south west has Westbrook which has opened up new stages. West has Glenvale with 3 new subdivions and Wilsonton with 1 new subdivision. 1 issue with investing in Newtown at the moment is the low rental yields compared with other suburbs of Toowoomba. It is for this reason that I have stayed clear of investing in that suburb. I have a house in North Toowoomba, Darling Heights, Glenvale (#1 option on land in Glenvale for Duplex development, Wilsonton units. I wouldn't discount Newtown entirely, but it isnt for my strategy at the point in time.

Are you investing for CF or Yield?

Budget?

[bullet46Participant@bullet46Join Date: 2011Post Count: 51]

October 8, 2013 - 8:53 pm

Now you are! Much better suburbs of Toowoomba…

[bullet46Participant@bullet46Join Date: 2011Post Count: 51]

September 27, 2013 - 11:38 am

In my opinion, Rockville is one of the least desirable suburbs of Toowoomba. I know this because I live in Toowoomba.

[bullet46Participant@bullet46Join Date: 2011Post Count: 51]

September 23, 2013 - 10:30 am

Great to hear!

[bullet46Participant@bullet46Join Date: 2011Post Count: 51]

August 26, 2013 - 8:47 pm

Catalyst – Duplex won't be strata titled and after speaking to the bank twice, I have been informed that the loan on the duplex can be split into two separate loans. You're right about the properties being cross collaterised, but I'm happy for this to happen in order to form securities. We are both on great incomes and I'm confident that we can manage cash flow over the coming years while we work on building up those offset accounts.

All properties are I/O loans. I have done this on my current PPOR as we only plan to live in it for a few months while the units are being built. Then we'll have tenants in it. I also have a chunk of money in the offset account of the PPOR that is obviously offsetting the loan, but will also serve to pay off one of the units when it becomes my PPOR.

[bullet46Participant@bullet46Join Date: 2011Post Count: 51]

August 5, 2013 - 11:48 pm

Hi Simple,

Wow, I'm really motivated you mentioned the buffer account as that's exactly the language we have been talking. I told my wife that we'd get into the unit, own it outright and then get all 3 investment properties neutrally geared. From the moment they are neutrally geared we would create a buffer account so that we are protected should interest rates spike. From here it's a simple managing process where we add funds in or withdraw funds out of the offset accounts based on what the interest rates do.

I see it as a simple, safe and protected process of being able to attain further properties in the future. If the buffer account gets too high then we can buy another property or if rates start jumping then we can redirect our attention to the offset accounts.

[bullet46Participant@bullet46Join Date: 2011Post Count: 51]

July 22, 2013 - 9:57 pm

Hi Rachelrodrigues,

I have mine through Toowoomba City Realty and they have been nothing short of perfect. They charge a flat fee of $110 per month and have been prompt when following up concerns. I knew they were a good company when my friend (a renter) said they didn't like them because they are too picky my reply was "perfect".

Jamie

[bullet46Participant@bullet46Join Date: 2011Post Count: 51]

July 15, 2013 - 6:58 am

Hi Shape,
Is it an internal wall when they built a deck and essentially closed it in to make a room. They then knocked down and internal wall to create open plan living.

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April 21, 2013 - 8:48 pm

Hi JacM,

The reason i eventually want to do build a duplex and live in one side is for a couple of reasons.

1) We have only ever built properties brand new and we still wanted a "nice" newer house for ourselves. Something that we can stay in for many years while we cement a decent property portfolio.

2) It may sound silly, but we have a couple of nice jet skis and I often have to take one off the double trailer. I need space to do this and a single garage won't cut it.

In regards to a previous reply – We understand that there will be selling costs as well as stamp duty on newer place, however, we see these as a short term cost that will be out-weighed by long term achievements. My initial goal is to become mortgage free. This doesn't mean I pay off my entire loan. My understanding is that our new place will be around the 250k mark and we'll soon have 250k in the offset account. Purpose being that we are then able to direct our finances into the offset accounts on other properties. It also means that when I build a duplex I'm able to take out my finances and turn it into an IP???

Hope I have this all correct as this is the path I've directed us towards.

[bullet46Participant@bullet46Join Date: 2011Post Count: 51]

April 18, 2013 - 10:47 pm

Ok.
Once I sell my current PPOR and buy my next one, I was planning on keeping the new ppor as I/O as I believe it’ll eventaully become an investment property itself. I wanted to pay it down in full so that we can devote our funds to the offset accounts of the IPs. Im located in QLD so not sure about the benefits of putting it in different names.
Thabks for the info.