HiSo, one should avoid Bankwest like the plague? I have had no dealings with them, but have seen some negative comments about them. Now that it has been purchased by CBA, will anything change?RegardsDaniel

Hi, fellow forumitesThanks for your feedback so far. Now, I am really concerned about a HDT and its feasibility for our situation. Will discuss this with the accountant tomorrow to see how a Trust can work for us.FYI: The accountant I will be meeting is Nancy Keep. Noticed that she was recommended by some Melbourne-based forumites in the pas…[Read more]

Hi, Terry,Yep. One Direct is ANZ's internet arm, and they do not offer offset facility, only redraws. Now I know that having a redraw facility mixes the deductible and non-deductible money together and is not clean for tax purpose. Was discussing with the Mrs and we will have to go to an accountant to set up a tax-effective structure, as well as…[Read more]

Hi, LalibellaOur combined net monthly income is $6300.Factoring in the negative gear for my rough calculation above, we will be left with around $1700-1800 per month. Other factors to consider would be:We are planning to start a family at around next yr, so am looking to purchase one IP before stopping for a couple of years (2-3 yrs). So, we are…[Read more]

Hi, TerryWWe are not looking at buying yet till early or mid 2009, so have plenty of time to do our research. Also understand that the market might be pricing in smaller falls in the interest rates, so we are happy to wait.I currently have an online transactional loan with OneDirect. Any extra money that we put in appears to stay separate from t…[Read more]

Hi, TerryWThanks for your response. Good for me to know that projected rental income and negative gearing are considered before proceeding back to my lender (OneDirect) or any other lender. A mistake on my part of my cash savings. It is actually kept in my home loan to save on interest and I have a redraw facility with my lender. I tend to see any…[Read more]

I read a book a while back. I think it was titled "The end of oil". Quite simply, it talked about the switch from firewood from the Middle Ages, to coal in the Industrial Age, to oil now. Each time as there is a switch from one type of fuel to the next more efficient fuel, it causes great disruption in local economies; and the switch took…[Read more]

HiI have to agree with LA Aussie. We need a serious dose of financial literacy for as many people as posslbe. Not to such a level that there would be more RE investors around to compete against us, but the basic money management such as spend less, save more mentality. Often, it is the poor that really need such financial understanding, as they…[Read more]

Hi, PetersemailA conveyancer does a lot of Sec 32 and have the experience and knowledge to deal with them, especially if it is a pretty straight forward contract. My partner and I bought our first property a few months back and we used a conveyancers who are members of the Australian Institute of Conveyancers. Do a search and check out the…[Read more]

HiIf Salacious is right about the period after high interest rates where it stagnates for a while, would that not allow for rental yields to come back up to a more reasonable level than the 4-5% in some capital cities? I say, hold on to the ones in good location (public transportation, amentities, work…) If jittery less experienced investors…[Read more]

Hi, madpropertyMy experience when buying my PPOR was that agents want to know if you are am owner-occupier or investor, so that they can take a different approach for each type. As an investor, they will promote price, rental returns, location, all the things that an investor would want in a 'perfect' property. As an owner-occupier, RE agents tend…[Read more]

HiThere has been an in-depth discussion on this topic before. Just do a search in the forum and you should be able to find it.Conveyancers have experience in doing the routine paperwork and are cheaper than solicitors. However, if you require legal advise, solicitors are the ones who are legally permitted and qualified to give them to you. Of…[Read more]

Agreed. An interesting article. The start is to always get that initially deposit and get into the property market. As long as the whole economy keeps on humming along fine, national migration keeps demand for housing and rentals up, increasing population in the cities will result in rising density, so buying in places with good transportation…[Read more]

Hi, ShanshanSome things to consider for the agencyBrand name (Perspection by renters about that agency);Number of property managers versus number of rental properties managed;Full disclosure of fees involved (higher management fees covering misc expenses versus lower management fees with additional misc expenses).Some things to consider about the…[Read more]

HiLooks like Redwing had said a paper value of over $1m back in 2006. Still, that is an amazing achievement. Even better now with over $2.1m. I hope to get there someday. Give myself a good 10 yrs should do it. It seems like an interesting idea to use income-producing managed funds to pay for the negative cashflow. Could someone explain how that…[Read more]

Hi, VoigtstrAs I was reading through this thread, I thought it was a recent one until I noticed the submission date, going back to July 2005. Have a similar plan to yours. Just got an apartment for $330.25K and am getting married at the end of the year. Putting most of the salary into the loan and using a shared credit card as much as possible.…[Read more]

Hi, JLI think being labelled a 'capitalist' can be a good thing; it shows that you are an enterprising person who is not afraid to seek an improvement of your own life and that of your family. Many people complain about what they do not have materially, lack the mental / emotional / psychological resolve to obtain the knowledge and skills to a…[Read more]

Hi, ZayneRegardless of an inner suburb apartment or outer suburb house, you should really be consider the followingOverall economyDemographicsYour preferred target market  – Retirees, DINKS, Singles, Young families, Maturing familiesYour investment goals – Capital / Cashflow / MixedAmenities – Shops, Schools, Transportation, Parks, etcPlus many…[Read more]

Hi, NevillegI bought an 2 yr old apartment, settling in mid Nov as well. Had a property inspection by ArchiCentre. It is good to have another pair of experienced eyes to check through the place, just to be sure and for that piece of mind. After all, it is only $440. A tiny expense considering the size of the loan.All the best.Daniel Lee

Hi,  ShelDo not sell unless you really have to, or the place you currently have is not performing well in the currently strong economic market. An outlay of $40 a week to hold a place is cheap considering a dual income status. Once you add in a depreciation schedule and raising rent, your Adelaide place could even become +ve cashflow for you.…[Read more]