I would factor at least a 5% increase per year in expenses.Land tax I do not really have a clue on but probably 9% p/a as land value can increase by this amount on average.And also factor in misc repairs. say $1000 per year per unit

Sorry I didn't explain how it devalues the primary property.Due to the loan being secured over the primary property which will eventually end up with half the land value.You may be able to discuss with the lender about securing the loan over the two new land blocks.

When you sub divide you will have to talk with the lender as your 95% LVR will change to a higher amount and they may not be happy with the value of the property decreasing while the loan stays the same. (Yes you may be putting the sale amount off the loan but there will be a time lag of 3 to 6 months before this happens and the lender may kick up…[Read more]

May be a property maintenance company can help your situation as you are remote.http://www.greyarmy.com.au/?gclid=CLjQ6tyZ06ACFRTSbwod8WbIrw

Have you tried hire a hubby http://www.hireahubby.com.au I have found them to be reasonable on their quotes.Always get a least three quotes on the work required if you can arrange quotes.Have you triedgrey armyhttp://www.greyarmy.com.au/I used them before the company franchised out to the vast network it is today.

donkey33 wrote:
Hi all. I don't know what to do.Have loans with a basic interest rate around 1% lower (Bankwest) but these will revert to normal variable rates within the next few months. I have spoken to the bank and due to the size of the loan and me paying on time, they would keep the rates low for another 2 years if I want. These loans come…[Read more]

lalcorn wrote:
It's not worth the hassle of moving just for the sake of moving and living in "your own place".If the numbers stack up on the property as an investment (when it comes time to move out) then it could be a good idea.If you are moving away from what you know and enjoy for little or no real monetary gain, then why do it?Don't forget…[Read more]

How much is this going to cost lenders as from experience licensing is never free when dealing with the government.

As it is superannuation you might need to investigate if this is a prudent place to gohttp://www.apra.gov.au/contact/form.cfmorsee this site alsohttp://www.fido.gov.au/fido/fido.nsf/byHeadline/Complaining%20about%20companies%20or%20people%20FIDO%20version

If you take out 100k for PPOR it will be for private purpose and you cannot claim the interest charges as a rental income expense.You may also become un-able to claim for the first home buyers grant by renting out a property first You need to check this out with the state revenue office you are living in as this varies with each STATE.You can…[Read more]

Are you referring to capital gains tax?There are a number of elements to the cost base for capital gains tax. (cost base is subtracted from capital proceeds to work out gain)http://www.ato.gov.au/individuals/content.asp?doc=/content/36557.htm&page=2&H2You cannot claim to reduce your normal income tax unless the property is producing an income…[Read more]

Mortgage Insurance is another cost if LVR is >80%Solicitor Fees or conveyancor fee

Land tax should be based directly with rental income. How many caravan / camping grounds have to go out of business because of this tax?

If you do up the rented property are you doing the work yourself. What time frame are you going to not have any rent coming in and are you waiting for the tenant to leave or are you making them leave?I usually only do up a property in between tenants as I am then not kicking out a tenant and an existing tenant might not like to pay more rent and…[Read more]

Remember the lesson you have experienced being looking at who you can market to both in Tenants and in Selling a property.The retirement property may be cash flow positive but only if you can get a tenant.Don't let a mistake put you off Keep at it and go into damage control and think long term.  Even if you get a tenant you have to take note of…[Read more]

alanak80 wrote:
help needed with terrible kitchenthe house is a 1920 californian bungalow..also not sure what can be done with the space behind the gas oven (anyone know whats behind there?? and why the space does not go higher?/) i am thinking if it can be turned in large pantry cheaply but making the hole alot larger and replastering?? or any…[Read more]

Have you tried to sell the retirement property?It has a limited market to sell to but my father in law managed to sell his retirement unit so it can be done.The problem with the retirement property is the transient nature of the tenants or property owners as they usually move into a nursing home after a few years or they pass on.A real estate…[Read more]

If I was you I would check out if you are able to get finance with a passive income.Lenders can be difficult to deal with if you do not have income from a job.

The idea of being passed in at auction is that now you are directly negotiating with the vendor without 20 other people bidding against you. Usually the reserve price has not been reached so you may have to increase the offer in price as a show of good faith  it really depends on what is important to the vendor.

Haven't done this myself as I would go through VCAT in Victoria but this might be the steps to followStep 1Letter of demandStating in the letter that you have been misled and deceived and that the building plans do not represent what the salesman promised under the sales rep's verbal contract with you , which breaks the law under section 10 of the…[Read more]