Originally posted by everdine:
2. Manage your property manager very carefully

Derek,
Can you elaborate please?
Interested in learning how to do this better.
Thanks, Diane

Hi Diane,

Your property manager is the one that deals with the day to day issues and as such you tend to rely on them to fulfil their obligations properly.

Some strategies…[Read more]

Hi Redwing,

For me the six things I learned over the last 19 years are;

1. Look after your property and your will continue to attract a better quality tenant.
2. Manage your property manager very carefully – they are critical in the performance of your property after purchase.
3. Ensure you have good recording keeping processes so your…[Read more]

Hi Sonja,

Property valuations can be significantly different – and can be influenced by a range of factors; valuers understanding of the current market state, how comparable the comparable properties are, their level of due diligence and research, the recency of comparable sales and the level of experience of the valuer – to name but a…[Read more]

Dreamweaver,

https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=9729

From memory BIS Shrapnel and Matusik also provide sales data.

I believe the Aussie link also exists in other states.

Derek
derekjones1@bigpond.com

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

Hi Patrick,

Not quite – but you are getting there [exhappy].

Deductible loan cost do not include principle repayments. Assume you are paying $1000/month with $800/month interest. Only the $800 is deductible as the other $200 goes towards loan repayments and is not considered a cost of the loan.

Any income in excess of expenses will be taxed and…[Read more]

Hi Trev,

PC is correct most lenders don’t do an 80% lend on these and as such they may suck more from you than they give back. It really is a question of balance for you and your circumstances.

Management and ongoing costs can be a little high and rents are typically 85% of pension + rental assistance receied from the government. Soem units also…[Read more]

Hi Skidaveski,

Try

http://www.realestate.com.au/cgi-bin/rsearch?a=loan&t=res

There is a link that allows you to calaculate all purchasing costs, borrowing costs, loan costs etc.

Derek
derekjones1@bigpond.com

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

Hi Boardy,

And how long is a piece of string. One man’s nightmare may be another man’s dream.

I can only give comment on the rudimentary information provided and as such it all needs to be taken with a grain of salt.

At the moment you haven’t provided much in the way of supporting detail such as other outgoings for each of the properties, where…[Read more]

Hi Daaj,

Only in accordance with any loan conditions but the question has got to be Why cancel it?

It is a little gold mine for your future investments and will only cost (after establishment costs) you interest based on what is drawn.

Nothing drawn out = $0 interest (maybe account fees depedning on your loan). For me having access to those…[Read more]

Hi Yarwood,

Recommend you do a search on ‘Perth’ and see what comes up – there would have been a few discussions in the past.

But in answer to your question – there is no definitive answer – your gem can be found in many localities – you just have to find it.

But if you are growth focussed look along the coast, river, major transport routes…[Read more]

Hi Daaj,

A. Do repayments come out monthly on the $10,000 at %7.
B. If you put in $1000 back are you only charged for $9000?

Repayments are calculated daily on the amount outstanding – which in your example is $10K and then reduces to $9K as per point B.

C. Does that $1000 offsets the repayment for the period in the loan?

If you wanted to, pay…[Read more]

Hi Jaffa,

An impossible question because you haven’t indicated how much your total income is – which is the key determiner at tax time.

Check out the following scales and this will help you determine your taxation rate.

Income levels Tax Due Excess %
$6,000 – no tax up to $6K + 17%/$1 thereafter
$21,000- $2,550 tax + 30%/$1…[Read more]

Hi Glenetti,

Are you addicted yet?

Most typical leases are paid at a weekly rate with a requirement, unless otherwise agreed that the tenant will be two weeks in advance.

Tenants are also required to pay a bond equivalent to 4 weeks rent upon taking up the lease.

Loan repayments are typically calculated on a daily basis but paid…[Read more]

Hi Brenny,

Who has told your Dad that he is now over the assets level?

I recommend an appointment with one of their advisors and you go along too so thatyou can look at things from a slightly different angle.

How much over the assets test level is your father? How is this determined? Are the figures accurate for the area? Is the pension amount…[Read more]

Hi Lazy,

Good growth areas.

Check out http://www.quartile.com.au – they may have a general ‘report’ type document on the area.

Also check out http://www.prd.com.au as they will be able to give you statitical data (at a fee) on the two areas too.

Just remember some of the stats used in the report and to compile the report may be a little aged in a fast…[Read more]

Hi Misty,

Lenders tend to work on gross income levels, but this does vary. A good broker should be able to get you over the serviceability line if they have a good relationship with the various lenders the work with.

If not, there are number of lenders who also include lo doc and no doc loans in their product range so these may be available to…[Read more]

Hi Monopoly,

You have been ripped off – there is no legal requirement for you to put a 10% deposit down in Victoria.

From http://www.loan.echoice.com.au/pages/h_vic_deposit.html

I also recommend a check with the legislators in your respective states – some of these household myths incorrectly develop ‘law’ status without it being enshrined in…[Read more]

Hi Dave,

And in Victoria,

Should I insure?

“You should think carefully about insuring property after you sign the Contract Note or Contract of Sale. A law called the Sale of Land Act says that you can pull out of the contract if the house is damaged and is “unfit for occupation”. To do this, there are technical rules about notifying the seller…[Read more]

Hi Dave,

Definately get insurance from the day your offer is accepted as you have a finacial interest in the property. This requirement is actually legislation in Qld and may also exist in other states – worth checkingout with the relevant authorities in your state.

At the very least get a cover note organised at time offer is signed off and at…[Read more]

Hi all,

Simon is based in Newcastle – but don’t let that discount using his (or the services of others)

The wonders of modern technology usually mean there is little or no need to be seated on the other side of the desk from your broker.

The key issue should be can they source you a loan that suits your needs and at an appropriate rate to your…[Read more]