Originally posted by chevy_no10:
I recently inherited $250K and want to invest it in property. I have a low income of $45K, never bought property before and would like to hear your ideas on how YOU would choose to invest all this money.

Hi Chevy,

For me the critical issue is to take some time and explore all the options available to you. Not…[Read more]

Hi Don,

You have just demonstrated why renting to family and friends can be problematic unless clear guidelines are maintained.

Your friend is out of line – according to the Victorian Consumer Affairs there is no such numeric restriction.

Checkout the VCAT website – I have a copy of the tenancy act of you want. Drop me an email with the subject…[Read more]

Hi Beast,

Different issue – you can top up the loan, you can’t claim the interest on the portion that applies to personal, rather than, investment debt. Hence Steven’s suggestion to split the loan into two parts to make tax return preparation a painless process.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Hi Ned,

From the ATO website CGT guidelines, hopefully this will address the first part of your first question.

CONSTRUCTING, RENOVATING OR REPAIRING A DWELLING ON LAND YOU ALREADY OWN

Generally, if you build a dwelling on land you already own, the land does not qualify for exemption until the dwelling becomes your main residence. However, you…[Read more]

How about we leave this one for the legal people from the respective organisations to deal with. Until a decision is made any discussion is largely irrelevant.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Originally posted by cyclist:
You may find this website to your liking.

http://qwertyu.colmkille.hop.clickbank.net

Hi Cyclist,

I am curious – is the link part of an affiliates program by which you get paid each time the link is followed?

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Hi Tracey,

Give Ed Chan at http://www.chan-naylor.com.au a call.

They are basedin Oatlands

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Hi Damien,

Exploring your follow up post further.

I still think that 6% on a carpark space is insufficient in investment terms given the commercial/business nature of the loan.

I would prefer something more standard in a residential property line as the banks will recognise a higher percentage in terms of security.

While this may not sound a…[Read more]

Hi Foundation,

Tis interesting how two research groups come up with different perspectives.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Hi Damien,

A few points –

Given ‘property’ is generally purchased for either growth or rent returns I am not sure that this is a good deal.

Rent return is pretty lousy. Using your figures of $40/week and $50K to buy return is only 4%.

Growth on carparks is limited as far as I can tell due to the limited market for them.

Finance will be a…[Read more]

Originally posted by luan:
But how do people buy these places? Do they just buy over the phone or do you actually go there to inspect the houses? No offence, but Kalgoorie is in the middle of nowhere!

Many investors use the net and/or local agents as their first point of contact. Most will either go there themselves or, alternatively, employ…[Read more]

Hi all,

According to a recent Matusik paper herein are some information bits n pieces that may be of interest.

1. Qld’s population grew by 77000 people to end of March quarter of this year. This equates to a need for 30000 dwellings.
2. According to ABS 1000 people still move (and stay) to Qld each week.
3. Massive jobs growth in Qld – to the…[Read more]

HI Shade,

For me I would suggest that you are over leveraged.

Your current property has an LVR of around 90% and you are considering borrowing 100% of the next property. To me that is ‘over leveraged’ and unless you are certain of the values of your properties and their growth prospects I would suggest a safer route is to pay some more off the…[Read more]

Hi Maruco,

I do have a copy of the index to ‘Trust Magic’ that you are welcome to have a look at to help you with yoru decision making.

Just drop me an email with ‘Trust Magic Index’ as subject and I’ll forward it through.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Hi Maruco,

Try ‘Trust Magic’ by Dale Gatherum-Goss.

It is available http://www.gatherumgoss.com – costs around $100 but money well spent. There is ample room for note taking as you go along.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Originally posted by Mortgage Hunter:

Is this clear?

What’s a FHOG?

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Hi Robo,

What is that saying, something about a bird in the hand? For me take the written offer and work from there and see what evolves over time.

Derek
derekjones1@bigpond.com
http://www.pis.theinvestorsclub.com.au
0409 882 958

Hi Hopes,

Not heard of them and may be off the track, in terms of service provided, but these questions/pointers may be of assistance.

Some thoughts for you to consider.
1. How long have NS been in business?
2. How many investment properties does your ‘consultant’ own?
3. How long has your consultant been investing?
4. How does your ‘consultant’…[Read more]

For what it is worth – I believe you have got the sequence around the wrong way.

Find a twon or two (or three) that has the fundamentals that you like and is sustainable and then work the local REA and develop a rapport with them. The more serious you project yourself the increased likelihood of a REA contacting you when something meeting your…[Read more]

Hi Robo,

We went for a solar system with electric booster which is on ‘Smart Power’. This means we can flick the power on after 9 pm ready for the morning showers when our tariff is 6c/unit instead of peak rate of 18c/unit.

We have found that there is generally enough heat still left in the water at the end of the day when teh youngest daughter…[Read more]