Matie I've gone with Geelong.  Solid proven capital growth, yields above 6%, and massive rental demand.  You can have yourself a brick house there for $200k.  No need to be a property snob.  A dollar earned in a regional area buys the same loaf of bread for you that a dollar earned in Toorak would.  No point having one of a zillion identical apar…[Read more]

Hi Firstinvestment24,Now that we've shot you down we've probably made you feel a bit disappointed.  But we're a friendly bunch that genuinely wants others that can be bothered trying, to succeed.  Have you considered attending some local knowledge-sharing seminars, where you can watch guest speakers and also chitchat with oher people that are i…[Read more]

Welcome!A few things to say about this one:Never take the selling agent's word for it regarding whether the buy is "a good deal" or what the expected rental return is, or how in demand he property type is.  It is in the agent's best interest to sell to you.  Not his problem if you buy something that sits empty or doesn't earn rent anywhere near c…[Read more]

ps, remember to put in a statement on your offer that says "this offer expires at 5pm today, <<insert date here>>".  Otherwise say the property goes to auction, and the highest bid is less than your offer.  Then they could ring you and accept the offer you provided before the auction.  Yes apparently these sorts of shenanigans do in fact ha…

The agent is legally obliged to take all offers to the vendor.  The agent wants 10% because it will sit in the agent's bank account earning interest rather than in YOUR bank account earning interest.  Also there is a perception that you are more committed to the deal if you have provided a bigger deposit.  The agent also wants a shorter se…[Read more]

Hi Richard,Did you happen to get to the bottom of the definition of "substantial renovation" ?  For instance, if you rip out the kitchen cupboards and oven and put new ones in, and same deal in the bathroom, repaint the walls, and put new floor tiles and carpet down, is that a substantial renovation ?In other words, what is not a substantial…[Read more]

waydo77 wrote:
ok just found out from key media that run the mag, that u must pay for the ipad version grrrr, it should be free to the print subscribers or at least discounted.

Why?  The publisher has to hire the skills of web designers, pay for webpage hosting and such.  So why should they give you access to the product for free?

I used Aussie once – won't ever do it again.  The broker actually had a clue about structures and in the end I got an appropriate loan for my needs.  However the guy was constantly missing in action at all the crucial points of the loan application process.  He'd vanish for days… not return calls or emails… and of course the bank would not ta…[Read more]

Cg Brumby wrote:
I have glowing references and never had a problem finding a property to rent. But lost everything in the aftermath of the flood and couldn't save my references and letters from previous properties I lived at. I have had to start over from scratch. I have been looking for a place to live/rent since February 2012 and keep…[Read more]

Hi RichardIndeed !!    Jac

I have to admit, and I will upset some forumites by saying so…. that it does upset me that when newcomers come to this PROPERTY investing site to seek advice on investing in PROPERTY, that they are encouraged towards the stock market.  That is not the investment strategy they came here for and it is quite unlikely they have enough knowledge of…[Read more]

Hi waydoIt will save you a week or so in approval time after you find the property… but hey, three weeks, four weeks… I think agents are getting used to the fact it now takes 28 days or so to secure finance.  I think so long as your broker has done some calculations for you on how much you can reasonably expect to borrow, and is solid in…[Read more]

Ah I see your dilemma.  So maybe then either use a different broker, or do not apply for the loan thru this broker till you have found the property in question.

waydo77 wrote:
clause 1. if you proceed with the loan then no fee is payable by you. If approval is obtained and you do not borrow that loan within 40 days of approval, you must pay us $880 within 50 days of the approval date.

Um… why would you bother applying for a loan if you didn't want it?  you know the terms up front so what is the…[Read more]

I think it would be a good idea to view depreciation as a "bonus" as opposed to a reason for investing.  What would it do to your financial position if 6months after making your purchase, the government suddenly stripped investors of the right to claim depreciation?  Better that the property can stand strong even without depreciation, in my op…[Read more]

If you are looking to rent the place out, you need to be quite solid in your understanding of whether the local market demands furnished accommodation.  If not you might find it tough to get a tenant, or indeed get tenants of the short term variety.I still think $18k is a lot of cash for furniture… have you compared it to what it would set you b…[Read more]

what furniture does this buy you? how much would it cost you to buy this stuff yourself?

I might as well weigh in on this one too.My thoughts on houses are:I am not a big fan of a large backyard if it does not earn its keep.  Do I really want to pay bank interest on a bigger mortgage for a backyard that does not earn extra rent?  No.  However if the backyard is a wee bit bigger and could accommodate the construction of an ad…[Read more]

Remember to look at the price of unrenovated properties, and what the same sort of thing seems to cost if already renovated.  If the price difference is the same as the cost of the renovation itself, don't bother with that suburb.  Find one where you would manufacture extra value by having done the renovation.

There is no way that I would pay half a week's rent for lease renewal.  $50 at most.  And once you have a couple of properties with them, negotiate it to zero.  Remember that all a lease renewal is, is a phonecall to the tenant from the agent asking if they want to renew, and posting them a renewal notice.  That's not half a week's rent money wort…[Read more]