Why would you want slow capital growth?  You'd be better off buying a smaller dwelling (such as a unit) in an area that is more proen to experience good growth.If you have capital growth, then in a couple of years you'll have enough equity to use as a deposit for a second place.  And so on and so forth.  Buy into something with little or no ca…[Read more]

I have not studied Mildura.  I prefer locations closer to the capital cities.

Ballarat VIC.  Something close to the hospital.

What's your budget?

As Richard says, paying out a bad debt does not instantly remove the record from your credit filehttp://www.mycreditfile.com.au/faq/reads:How long is the information held on my credit file?Credit applications and enquiries and overdue accounts are held on your file for five years Overdue accounts listed as a payment default are held for five years…[Read more]

Determine what the houses would sell for AS THEY ARE NOWThen compare it to what they'd sell for if you reno'd them a bit.  Remember to deduct costs of renovation.Then compare that to what the townhouses would sell for, and deduct costs (demolition, planning application fees, build fees, bank interest…)If the end result is that you wouldn't a…[Read more]

Paul Dobson who participates heavily on this forum might be able to help you.http://www.webuyhousesdirectory.com.au/we-buy-houses/joint-venture-wanted/jv-property-partners.html

Look at what similar un-reno'd places sell for in the target suburb, and what reno'd places will sell for.  If you're doing a flip, you need to look at stamp duties, selling costs, agent fees and solicitors too.  All this will give you an idea of the max you could spend on a place before you make a loss.

ps API = Australian Property Investor magazine

$250 a week is only $13k a year.  That's a pretty meagre existence… especially when you consider from that you also have to pay council rates and insurance on both properties.  Definitely acquiring 2 properties is an excellent start but not enough to retire on.

Further to my comments above; if you have $400k and you wanted to sink it all into property to fund your retirement, I'd put it into a few lower-end properties to spread my risk.

yellina wrote:
I am not sure about your age and what is tour plan. But with 400,000. You can actually retire and be a millionaire in the future. Case scenario 1 You can buy 2 apartments in Melbourne. As a first home buyer, government will pay most of the stamp duty and some extra money is left to be used for other property stamp duty as well,…[Read more]

Hi DanWhy not take a look at the rear pages of API magazine and find the towns with a high rental yield and a low vacancy rate?

Thanks for clarifying Richard – I had thought you were suggesting the offset account idea wouldn't work on a PPOR converted to an IP and couldn't work out why.  Thanks for taking time to clear that up!

Indeed.  If you are in Victoria, the most recent council rates notice will be included in the "Section 32" which is a document the Real Estate Agent can provide you.

Indeed Nathan, indeed!

Nathan makes an important point above; don't incorporate tax deductions in your calcs.  You'd come unstuck if there was a tax law change.  Only recently there was a tax law change that meant that one of the types of trust structures can no longer distribute profits to children tax-free.  That would make a big difference to the end result.

Qlds007 wrote:
Twafy also doesnt work for a PPOR if you ever decide to rent the property out….. and you woould be suprised how many clients decide to take that path.

Hi RichardI'd love to hear a bit more about this if you have a moment… not 100% sure you mean? 

Look at Warrnambool

I think you already know the answer to most of your questions.Regarding hte $350pw… have you checked what similar accommodation is renting for on http://www.realestate.com.au/rent ?  $350pw sounds high for a student to me.The other thing you might not have considered is that NAB might not be too keen to loan you 90% on student accommodation.  The % t…[Read more]