Hi, SpudwayHave you considered a Lease-Option? You get the vendor to lend you the remaining $60K as a loan, and you pay the Vendor at an agreed interest rate. This website explains how that could work.RegardsDaniel Lee

Hi, Nit1 – You do not pay Council fees /  rates because that is paid through your Body Corp.2 – In addtion to Water Bills, there is also the sewage and park charges: Estimated at $120 annually3 – Property Tax: I believe in Queensland, the Land Tax threshold cuts in at $500K. In a new Apt, the Land component is around 10-20% of the value, based on…[Read more]

propertunity wrote:

ericyan wrote:

daniellee wrote:
With that said, it is always possible to find bargains relative to any market. My wife and I recently purchased an IP at council valuation in early May 09 after 7 mths of searching

what is meant by council valuation?

A council land valuation (or Valuer General's) is in no way shape or…[Read more]

ericyan wrote:

daniellee wrote:
With that said, it is always possible to find bargains relative to any market. My wife and I recently purchased an IP at council valuation in early May 09 after 7 mths of searching

guys, excuse my newbie comments, what is meant by council valuation? thanks in advance

Hi, EricWhen you look at a Sec 32 for a…[Read more]

Hi, PropertunityI would like to augment your view on 'wealthy foreign students' and their parents buying up properties. Being a former 'foreign student' myself, I can say from personal experience that (assuming a sample size of 100 foreign students): 1 – The majority of foreign students (around 90%) do not come from wealthy families, but that…[Read more]

Hi, KarenCongratulation. A true morale booster for many aspirational investors like myself. A truly amazing purchase.RegardsDaniel Lee

Hi, KrisGeneral sentiment from experts like Steve McKnight suggest that the buying frenzy will intensify up to Sept 09, when the FHB Boost will be halfed. This will be followed by a weaker frenzy until Dec 09, when the FHB Boost expires. The forward buying by FHBs will likely mean less buying competition from Jan 2010 onwards. Based on this…[Read more]

Hi, SailorkazWife and I going to do a cheap low-budget reno on our first IP next month. Did our research and came up with a list of cheap things to do that can quickly add perceived value.Paint walls and ceilingCarpetCurtains / BlindsLight FittingsDoor handles and kitchen cabinet handlesAll taps in propertyMuch renovation info can be found in…[Read more]

Hi, CocobeanThought I start things off. Live in Melbourne so bought my first IP here. Settlement in Jul 09. We had first hand knowledge of the local area, so it allows wife and I to snap up a good deal with we saw one a next wks back. Also, being the 1st IP, we are dipping out toes into PI and wanted to be conservative about it.Being…[Read more]

Hi, PosClearly, if a product is that amazingly good, it does not require a guarantee.What are your plans for the property then?RegardsDaniel

Hi, CocoIf you keep both your PPOR and IP, you will have 2 properties that can appreciate, whereas when you sell, you surrender all future capital gains. Also, if your loan-value-ratio for your IP is below 80%, you can refinance it every few years to provide you with a source of income, as long as your IP keeps appreciating.Have you considered…[Read more]

Hi, ForestHere is my story.Bought our PPOR in Nov 2007 with 20% deposit. That property appreciated by 10% since then and in Dec 2008, we refinanced by taking out a Supp loan on the higher valuation for an IP.We just purchased an IP yesterday with the Vendor having signed this morning. So far, our plan is to buy well (at council valuation), have…[Read more]

Hi, MikeThanks for your help with the report. I put in an offer in that location on Sat 25/4/09 and the offer was accepted by the Vendor. Right now,  am having an anxious wait for the Sec 32 and Contract of Sale to be ready before we can sign. Thought I compare my layman research and estimates against what professional research firms like Res…[Read more]

Hi, TerranceYour criteria of:A budget of $300K to purchase a house in SE Melbourne will probably allow you to settle in Pakenham (SE Melbourne) or Frankston (Sth Melbourne). Frankston is a pretty nice suburb, and really depends on which part of the suburb you are in. The sburb itself does have some commercial activities going on, but cannot be…[Read more]

Just to keep the debate going…FHOG Boost: Staying or going?http://www.theage.com.au/national/doubt-over-boosted-first-home-buyer-grants-20090423-agt1.htmlLet the struggle begin!Just an extreme case of someone who should not be buying a PPOR at this time, especially if they need the Boost to buy. http://www.theage.com.au/national/with-one-call-the…[Read more]

HiI think from a serious RE investor's point of view, 'stabilising the current property price' means removing the emotional strings pushing the offer prices upwards above what a property is reasonably valued.With 35-40% of all new loans issued to FHBs, the market has become quite unstable for many RE investors to handle.RegardsDaniel

HiYeap. Agree with Terry Ryder in his article. Prices might drop by around $7K due to the lack of the FHOG Boost, but lower interest rates, reasonable prices (previously before the rush), and the actual lack of housing stock available on sale (shown in the high auction rates) are other factors to consider.Personally, I do not think removing the…[Read more]

HiI do hope that the PM keeps his word and ends the FHOG Boost. Heard on the ABC that the lower-end of the market is really boiling over, with many FHBs borrowing up to their ears in loans to buy a home.  Now the fear is a wave of mortgagee sales by 2010 – 2011 when interest rates go back up, coupled with rising unemployment.RegardsDaniel Lee

Hi, Geoff80Why an IP? You can leverage around 90% of the value of the property, and have access to the full capital gains, income and tax-benefits that the property has to offer. If you have $50K, you can potential get a good IP for $500K. Property is seen as more stable, and even the worst falls in prices have only been around 30% in the USA.Why…[Read more]

Hi, Neilvs, CattleyaI do not think you can buy a cashflow positive property just off the street, even with some hard searching. The market is such that when Steve wrote his book, it was possible while looking around in the regional areas. If you want to invest in those areas and that is your strategy, that's fine. Also, when he and his business…[Read more]