fyi St George Bank has just changed their IO loans to 15 years (has to be one of the longest on offer) you can pay the full years interest in advance and receive a 0.10% discount on the fixed rate and they have interest offset facilities available both partial and 100% (variable rates only) I don’t have any IO loans with them but have regotiated…[Read more]

forgot to add – rent is increased 6 monthly in line with cpi adjustments also. hg

Hi All, had my chat with the agent. They are saying 10% return – which is a little short so they are only just pcf. But they are getting back to me with more details. But I have discovered that there is more than one for sale – all are tenanted with a waiting list for new tenants to move in. Only 150m to bank and shops and on bus route. The agent…[Read more]

Hi Amit, the agent is giving me the following scenario, 185,000 price, 37,000 deposit, 148,000 loan at approx 6.6% over 30 years which equates to a repayment of 942.28 pm. The current rent after rates, body corp fees etc is 246.00 pw net plus deductions for building and furnishings – so to a very inexperienced beginner this looks like a +ve…[Read more]

Hi All, more info – its a duplex with current tenants in place for another 12 months, 2 years old, asking 185,000 with a net rental return of 246.00 pw. The agent states (and I know its true) that recent info in the area says to expect a 10% growth over the next 12 months, I am expecting a phone call back re the property after 4 pm today. HG

I agree with the need to familiarize yourself with the area. I recently took a 3 1/2 hr drive to check out an area in regional NSW for property – whilst they didn’t meet the 11 second rule they had just experienced huge growth in the last 6 months and would have easily met it in Jan. Another place to call in and speak to someone is the local…[Read more]

1 ppor – 3 -ve’s and a 4th one at slab stage. All have more than doubled in price giving good equity but not positive cash flow. But have started to read Steve’s book – and read this forum and am starting to think there is a smarter way to do this. Learning curve starting to kick in. HG

[] many thanks guys – found the link and now some of the posts will make some more sense. Hmmm – more reading. HG