Absolutely not! I would look for an aspirational suburb next to and similar in price to your so called “dodgy area”. Some areas are just not great. Find your dodgy area and then look at places where people who live there aspire to live in (realistic people).Price will be similar and yields will be the same if you work hard and finding the right…[Read more]

Absolutely not! I would look for an aspirational suburb next to and similar in price to your so called “dodgy area”. Some areas are just not great. Find your dodgy area and then look at places where people who live there aspire to live in (realistic people).Price will be similar and yields will be the same if you work hard and finding the right…[Read more]

mods – duplicate please delete

Absolutely not! I would look for an aspirational suburb next to and similar in price to your so called “dodgy area”. Some areas are just not great. Find your dodgy area and then look at places where people who live there aspire to live in (realistic people).Price will be similar and yields will be the same if you work hard and finding the right…[Read more]

What to do if your valuation comes in low? I agree with the comments that in the majority of cases the bank assigned valuation result will be the same as the contract price. In fact, at loan to valuation ratios of 80% and in some cases 90% lenders will accept the contract price as the value and not require a formal valuation at all.

However,…[Read more]

What to do if your valuation comes in low? I agree with the comments that in the majority of cases the bank assigned valuation result will be the same as the contract price. In fact, at loan to valuation ratios of 80% and in some cases 90% lenders will accept the contract price as the value and not require a formal valuation at all.

However, this…[Read more]

In this case it is really about:

* What you think the investment is worth
* Why you are buying it
* How it fits into your portfolio
* What role does it play – that is what that properties job in helping you achieve your investment goals

The finance process and for that matter valuations are just tool to get you…[Read more]

Strange formatting issue mods please delete.

In this case it is really about:

What you think the investment is worth
Why you are buying it
How it fits into your portfolio
What role does it play – that is what that properties job in helping you achieve your investment goals

The finance process and for that matter valuations are just tool to get you get from point A to B and B to C.

A few of the smaller lenders are moving to fill these gaps with the odd lender increasing LVR on investment loans. However, agreed that overall the changes are significant for certain investors with specific gearing requirements.

As always I try to keep things simple in my own head.

Start with:

What is the idea behind buying the property. Will it grow in value and why. What has your personal reading a research told you.

Then:

Is money coming in each month greater than money going out pre tax.

If not – what is happening after tax.

If still cash flow negative how long…[Read more]

Redwood – suppose I am not really arguing or questioning the validity of gearing inside the fund. It’s just that I get that cringing feeling when you go to a bbq and meet someone and they start talking about their smsf and the conversation goes something like, “We’ve got one of the smsf things but I have no idea how it works, hubby bought some…[Read more]