Hi Josh

Only investors will buy an entire block of units from you, irrespective of the loan type (an owner occupier will not seek to buy a whole block of units as their PPOR).

Something to keep in mind is that if YOU qualify for a certain type of loan, it doesn’t automatically mean that a prospective buyer would qualify for the same loan.…[Read more]

You could offer on the property with a pricetag that you feel is suitable for the problems you suspect exist (offer should make it clear you’d be subject to finance, building and pest and anything else relevant). If offer is accepted go under contract subject to satisfactory building and pest inspection results.

Just doing building and pest…[Read more]

To more clearly explain what Terry mentions above:

Let’s say you have a mortgage (aka debt) against a home you live in (commonly referred to as your PPOR, your Primary Place of Residence). Let’s say you also have a mortgage against an IP (Investment property). Let’s say both these mortgages have offset accounts under a circumstance where money…[Read more]

Is reducing the holding costs of your investment property (and thus increasing your profit) a good idea? Yes.

Take a step back. Your objectives should always be to maximise both the rental return of the site as a whole, and also the resale value of the site as a whole. I could be wrong, there might be something unique about the market in this particular suburb of yours, but generally I would expect that joining two one bedders to make a two bedder,…[Read more]

Your rental yield expectations for these areas is quite ambitious.

Take a step back and decide if your objective is the rental yield, or to own property in a particular area. If you require a particular rental yield, find the suburbs that qualify.

Mortgage early exit fees depends on things such as which lender it is, how much they charge, whether you were on a fixed rate when you exited, and whether LMI (lender’s mortgage insurance) was in play. Speak to your broker to gain a better understanding of this.

Legal fees depends on the fees of the legal eagles you recruit for your purchase or…[Read more]

The only way I can see that a property of this yield is losing you $5k per annum is a situation such as this;

You borrowed the whole amount, plus stamp duty, and are paying a whopping interest rate of 6.3%.

If my assumptions are correct, it poses the following questions:
Why are you paying such a high interest rate, when the going rate at the…[Read more]

re: 1) : be clear on entry costs, holding costs and exit costs to ensure you are actually making a profit and not taking a loss.

Entry costs are things like stamp duty, legal fees, mortgage related fees, title registration fees, having the electricity on during the renovation etc etc.

Holding costs are things like mortgage interest,…[Read more]

The decision is out. Cash rate unchanged.

Explained perfectly in that one sentence :)

And I do love the phrase “whizz bang” :)

Re the above, your solicitor/conveyancer can give you clarity on whether they used an SMSF or not, and in fact whether there is a contract in place, or not.

I’m going to pipe up and say how nice it is that you are thanking people for helping you learn. Refreshing! Good on you :)

Oh dear! So secret that even ticket holders cannot know the venue?

Hi David

There are some historical rates available in the stats pages at the rear of Australian Property Investor magazine. However they are not prediction pages for the future.

Tread very carefully… projects that are temporary (eg prison project) can contribute to temporary statistics that are not sustainable.

Great – well before you steam ahead and spend any money on this plan, you need to determine if indeed there is a suitable demand for this product, and if so, if there is a demand for it in this particular location. There is nothing to stop you utilising free media tools such as facebook and gumtree to determine the level of interest. You could…[Read more]

You would need more than 1 customer obviously, so you’d have to figure out the logistics of that. In other words figuring out insurance, figuring out if it would need to be a manned facility, and figuring out how to let different folks in if there is no staff.

Hi there

Hm that is a shame. Careful to have more than one tenant strategy next time I suppose.

Not knowing precisely where it is makes it tough to make appropriate suggestions (consider mentioning the name of the town in order to attract more relevant suggestions), but I wonder … if it is conveniently on the path from Brisbane to popular…[Read more]