The best way to do this is to approach the agent and seller during an inspect and when they say no offers, make it clear to them you want to make a generous offer if the house is not passed in. Then when the top bidder wins…[Read more]

Think of it this way, you cannot loan money to pay for rates and expect to claim that interest. You can see here http://www.ato.gov.au/individuals/content.asp?doc=/content/66031.htm&page=9&H9 the basic overview. You cannot claim interest on anything but the actual loan covering the cost of the property, not coving the…[Read more]

Man you will be close to bankrupt is interest rates go up. How did you get the bank to loan you so much money? Just rent those places and you should be fine it you can afford the extra repayments. Else I would just sell one and pay off the other.

Not sure why the 6 months were ‘tough times’, that $7,000 is $270 per week for 6 months! There is basically nothing to loose here and everything to gain. A $140,000 unit will defiantly not drop in value.
Technically if you are being assisted by your family in the purchase, or they are…[Read more]

What you can do is pay about $2,000 to $3,000 and render the house with coloured concrete, will look like a different home, no cracks to be seen, and then get rid of it.

As long as the foundation is ok then cracks are not a worry. IT is when you have cracks from the corner of a windows running out to the corner of the…[Read more]

Over the last week I am begining to see houses go for above asking price and sell very quickly.

It is very scary now, I saw one house asking $310 and getting so many offers it ended up selling for about $322 I believe, now a nearly identical house is asking $359 and looks like it will sell, scary to see such jumps so…[Read more]

Firstly thay almost always cost far to much. You need to start looking around tonnes of units that are similair and see what they are selling for. Remember the actually selling price is usually 5% to 10% below the asking price, and then all the other costs etc. Claiming 7%…[Read more]

I imagine a family budget is very though. We are trying to save at about $700 per week at the moment and upto…[Read more]

All I know is they about 800 properties in SE QLD and about 1,500 around sydney. THings have been all good for a long time particularly in brisbane because rentals are so hard to find, and I can’t see this changing anytime soon.

What I would do is try and buy below $300k and stick to an area close to…[Read more]

Seriosusly big bank interest rates are so high its typical for people to be literally chucking away an extra $50 per week.

Some banks are good because they not only have no fees, they also wave LMI, ANZ do this I believe, so if you are short term holding an IP they are probably the way to go, if you don’t…[Read more]

But I would check with your tax man to make sure you are doing it correctly. The reason for this is because if you don’t pay GCT you are liable to pay back all tax you have deducted over the years as a ‘loss’ on an investment house that didn’t end up being classed as an…[Read more]

No. It just means that you are only allowed to pay interest only for 5 to 10 years, after that you must pay capital. At the moment interest only on $270,000 is about $20,000 if you go to the right bank.

“So say for…[Read more]

If you have to go as…[Read more]

When you get a loan you will probably be up for 4% mortgage insurance. Then when you sell, 2% in commision and 25% to 50% of your total profit to…[Read more]

Remember average prices might go up but that doesn’t mean that houses aren’t sitting for ages waiting for that price. Having been eyeing some…[Read more]

Basically its hard for a investment to return more than that saved buy paying off existing debt, since the current interest rates are 8% and hosues are only going up in value 8%. So if you are already in debt,…[Read more]

That statement sums up the typical complete ignorance over interest only loans and why banks love people who taken them. The…[Read more]

Recently got a property near waterford west for $255,000 after it was originally asking $269,000, this wan DEC06. Now the same type of houses are asking (and seemingly getting) $280,000 to $300,000 and the one brought is already valued at $22,000 more. It seems to…[Read more]

That has to weighed up agains capital gains tax. If he rents the place out even for 1 day as I under stand it, he waves his right to no capital gains tax when he sells the unit.

Say the rent is $250 and his interest at the…[Read more]

-Get 100% offset, take cash from here, get atm cards for this account, get it with no fees
-Direct salary crediting into offset account
-Have a credit card, pay for everything that is not cash with a credit card. Repay the card from the offset account before the interest free days are up. This…[Read more]

At the same time you have $200k in funds, does your money actually make more than 8% per year? I doupt it (after tax…[Read more]

You often hear stories of agents who also invest and in just a year or two they have large numbers of properties. When I look into most of them I found their income is collosally huge.…[Read more]

IP Melb $580k, owe 300k, rent ???
IP Syd $420k, owe 100k, rent ???
PPOR $???k, owe ???k, rent $260/wk

The bank…[Read more]

The securities commision and the stock exchange did a full look into australia investment in interest only investment, shares, property trusts and full residential outright purchases. The returns were extremely surprising. After inflation interest only investment made 1%. Full residential was about 3% and…[Read more]

I remember this story about some property manager at a realestate agent. An owner wanted someone kicked out and gave the 60 day notice without reason, they weren’t on a lease. Well all hell broke loose and the rental person got some TV crew in to make…[Read more]

A friend of mine works for a realestate doing rentals. A guy came in and signed a lease and paid deposit in the morning, said his wife was coming over to life with him from NZ. Later that day he came back all distressed saying his wife had died in a car…[Read more]

I have seen people pay near 55% of their GROSS income. After tax that leaves them with about 20% I don’t know how they did it but they do. Most people who are…[Read more]

I have however spent weeks going over every loan trying to find the best ones. A friend of mine who still works ANZ was trying to get me to take a loan with them. The best they could do for us (despite the fact that we are both professional earning $110k+) was 7.6% with 100% offset. They couldn’t even match virgin moneys…[Read more]

$39k per year is about $576 per week. $200 rent. $125 car payment. $80 other car costs (fuel, insurnace, rego). $40 bills (elec. phone. etc). Food $100. HECS $30. That leaves $0. Maybe $100 if you used share accomidation and paid $100 a week rent. Either way a loan…[Read more]

I used to sell ANZ loans, we were taught customer service and low fees are what people want, not low rates. Every time we were asked to match rates we were told to show all the features we had etc. and how easy it was to get out of the loan and trade later one etc.…[Read more]

Firstly if you have $300 per week in rent, after tax you probably will end up recieving…[Read more]

The right answer is always the LOWEST interest right with low escape fees. The best right now is clearly http://www.ratebusters.com.au. The variable rate is just 6.92%. on a $300k loan that is $50 PER WEEK cheaper than ANZ and other big banks who are at 8% or…[Read more]

If it isn’t a long time investment then its a risk because these houses never value. I have seen houses on the railway line sell for $220k around salisbury in QLD where the average is now up around $400-$500. Rent didnt seem to be affected though.

If you are both on $50k per year you should be able to scape together $750 per week in payments. Don’t even bother looking to invest until you have paid of the house. This is because the investment property will not return more money than that saved by paying off…[Read more]

interest on $700,000k is going to be $50,000 per year. The $300 per week rent will be taxed so you probably won’t end up with more than $10,000 or less from that house per year. So you still need $40,000 just to cover the interest.

I think the bank would loan you the money just because of…[Read more]