Hi Helen,

The current interest rates are a little bit deceptive given the rate (in percentage terms) is historically low – the flip side to this is loan repayments (affordability index?) are at an all time high (or should that be low).

As such any upwards movements will create as much, if not more, stress on borrowers than when rates were 18% in…[Read more]

Hi Seano,

If your builder is licensed then I suggest you give the people at the Master Builders Association a call and see what they advise.

A standard building contract will stipulate the building period but be aware that is stated in working days and doesn’t usually allow for issues such as ‘wet days’, rostered days off, delayed materials etc…[Read more]

Hi mdpearce,

For mine I would also suggest that reading a variety of property investment books, irrespective of whether or not they are CF+ orientated, will make you are better, more rounded investor.

I recommend a skim through the following link

https://www.propertyinvesting.com/forum/topic/6845.html

will give you a summary, and some…[Read more]

Hi all,

I’ll leave all comments about bokers and borkers but in answer to Scotty’s question – another option to his dilemma is to post a summary of what he wants to achieve here and some supporting information and I am sure he’ll get a lot of constructive and very public comments that may be of use.

I would endorse Simon’s comments about most…[Read more]

Hi Jaffa,

I wonder about this scenario and ask (and this is not excusing this agent’s ‘attitude’) but is there a possibility that you came across as a ‘timewaster’ – it may be beneficial for you to consider this aspect of this interchange as if this is partially the case you could be missing out on the ‘good deals’ if agents are reading you as a…[Read more]

Hi Bonnie,

I would counsel you to undertake very thorough research on your ‘plan and the property.’

As MH indicated this approach was used by some investors (or is that gamblers) as a means of making a quick buck. It was especially promoted when long building timeframes were in place and while we were experiencing very high growth rates or, at…[Read more]

Hi PP,

The link to the NSW OSR supplies some detail about land tax and other matters that may be of interest.

http://www.osr.nsw.gov.au/portal/page?_pageid=33,184904&_dad=portal&_schema=OSRPTLT

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Originally posted by dman66:

A few lenders have welcomed us with open arms, a conservative accountant has told us that we can’t take out our equity for personal use, then claim our previous PPR as a tax deduction.

Hi Dman,

You are getting two different answers as the two parties involved offer two different services – sure the brokers are…[Read more]

Hey Peter,

You need to find yourself a wealthy friend to guide you around these pitfalls [exhappy]

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Rotorog,

Dale Gatherum-Goss is another often used by serious investors.

http://www.gatherumgoss.com

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Originally posted by alwayscurious:

Then I will temporarily Park some of the cash in IP 2 (under performing one), spend small amount (under 3K) getting ready for market and sell it once the 12months+1day CGT thing is up. (2 months time)

I DEFINITELY plan to save 20% deposit from now on, I can see that’s a much smarter way to do things.

Hi…[Read more]

Hi regrow,

There is no ‘cooling off’ period in WA.

http://www.reba.wa.gov.au/Sale%20by%20offer%20&%20acceptance%20-%20April%202003.pdf

Do a search on cooling off.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Originally posted by FW:

It’s the PUBLIC LIABILITY angle that’s absolutely essential to be covered.

Felicity has raised an often forgotten issue when considering the worthiness of insurance. A house burns down and ‘all’ you are up for is new house, lost rent and contents.

A tenant hurts themselves due to your negligence and you are potentially…[Read more]

The market has moved since the book was written and as such the returns have changed in the larger areas. They can still be found but you may have to look further afield where the risks are greater.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Originally posted by Scotty B:

My background is that of a beginner investor, as of the middle of Sept I’ll be renting out 4 properties (2 in Como, 1 in South Perth and 1 in Midland) whilst living in company paid for accommodation in Karratha. My portfolio is cash flow neutral, which isn’t fantastic but at least I’m not losing money.

Hi…[Read more]

Hi Jenny,

Cannot comment on Melbourne suburbs but can offer some ‘food for thought’

By all means seek some recommendations about areas that may be worth looking at but you need to bear in mind that people’s preferences and, by default, their ‘list of must haves’ could be very different to yours.

Ultimately I would consider renting in an area…[Read more]

Hi Yack & Redwing,

SOGS have (or should that be had?) gold mines in Southern Cross (~230km W) Laverton (~300km N) and South Leonora (~200km N). They also have/had Tanatalum mines in Greenbushes and Wodgina (many kms from Kal) and as such their presence in Kalgoorlie could only be described as minimal – at…[Read more]

Hi Marnikp,

I recommend you have a good discussion with a good broker they will be able to canvas a few options for you.

Unless you are specifically ‘downsizing’ for lifestyle and/or personal reasons I would consider the line of credit/equity loan option with lo doc/no doc loan.

Derek
derekjones1@bigpond.com

Property Investment Support…[Read more]

Hi Tinkerbell,

I also subscribe to the belief that you need to make the decision that is right for you. When you do analyse your situation do not forget that you are $100K in front of where you were four years ago.

To assist with the ‘cashflow’ issues have you explored such options as interest only loans, quantity surveyors report, PAYG tax…[Read more]

Hi Arb,

As a broadbrushed statement – the current growth and rental cycles are ‘out of wack’ and as a consequence the numbers of positive cashflow properties are fewer.

Rents, in the main, have remained relatively stagnant and certainly haven’t increased at sufficient pace to keep up with the growth in property prices and the increased cost of…[Read more]