Will write more tomorrow, but here is a link to a thread that asks the very question of "What is due diligence" that will help you.https://www.propertyinvesting.com/forums/property-investing/help-needed/4335346?highlight=what%2Cis%2Cdue%2Cdiligence

I agree with Jason.  When you offer you could say "Yes I'm happy to offer $?? with ?? day settlement – subject to building, pest, finance and all the rest of it mate"…ahand then quietly add the precise wording of your clauses in the written contract.

As a result of your work is not the only way to get sued.  For instance, your dog might bite someone and they could sue you. 

Awesome to hear, Anita!  Confidence in your situation is crucial.  Great to hear you got control of your situation and got the result you wanted!

I also thought that forking out $450 from your own pocket per fortnight to hold an IP is a lot.  If you can give us more details we'll be able to comment in a more relevant manner for you.

If you get your numbers wrong on a property that you've forked out a million bucks for in a regional area, it has the potential to bite you on the backside big time.  Sounds like it's been on the market a while… there is probably a reason.  Do your homework and be super sure of everything, and be super sure of the impact to you if a couple of t…[Read more]

Wow sounds like in this case you might have dodged a bullet by posting on here.  xdrew may have saved you from buying a bad IP.

By the way, also speak to the local water company to understand how they bill.  In Geelong they see fit to bill you for a service charge PER SEPARATELY TENANTED DWELLING.  The council does the same and hits you with a set of rates per dwelling.  That adds up and helps corrode your rental yield.  You will also want to get some quotes on insur…[Read more]

Here are my thoughts:If I found a deal I thought was unmissable, I don't think I would post the link on open forum in case anyone pinched it (wink).Firstly, I would double check with the agent that is currently managing the leases what the actual rental returns are (and would request to see this in writing through my solicitor), and also compare…[Read more]

Further to Jamie's suggestion, I'd define what close of business is.  ie I'd say offer valid till 5pm on such and such a date.I'd include a clause saying "subject to buyer being able to secure insurance (for the property) that is satisfactory to the buyer"I'd also be more specific with the finance clause (eg "subject to buyer being able to s…[Read more]

If a town has performed well over a decade, it will likely perform well again over the next decade.A great indicator of growth is forthcoming infrastructure (new freeway joining the town to a major city, new train line etc)

That will give you a rough idea, but remember that you will only be able to see the prices that vendors are "hoping" to get for their properties… not what they "actually" get.  You could take a look at auction results and so on in the local paper, and also on sites such as realestate.com.au.  Going to a bunch of open for inspections will help y…[Read more]

You need to understand what a reno'd property costs to buy versus what an unreno'd property.  You also need to understand the price of certain things.  eg cost of a new kitchen, cost of just changing the cupboard doors or just painting them, cost of new carpet, cost of painting etc.  This will help you identify which properties can offer you ma…[Read more]

Thanks for the clarification Terry!

If it turns out it is worthwhile to get a depreciation schedule done, you'd have to hand the completed schedule to your accountant for inclusion in your tax return.  I have a feeling you can claim a year or two back on this as well, but don't quote me on that.

Further to what Terry mentioned, "QS" means Quantity Surveyor.  This is the individual that will complete the depreciation report.  In some cases you can do it over the phone or online.  Google "Depreciation Schedule" and ring a few companies, explain the type of property, the age of the building itself, the age of the stuff in it (eg carpets, ov…[Read more]

Hi DerekYup I knew the interest charges would be that much, but the property is rented, so that would assist greatly in paying that interest bill.  I just couldn't work out how the loss had amounted to $10k…jac

are you on a Principal and Interest loan or interest only?

I don't understand how you are losing $10k a year on it if it is tenanted.  Are you declaring the loan interest and all other associated costs on your tax return?  I am presuming you work and thus pay tax, so you ought to be clawing some of this tax money back from your property losses.  That would significantly reduce the loss.

Hi AdamOnly you can decide whether you should buy right now or not.Here are a few things I personally think:If you are in it for a long-hold, it doesn't make much difference anyway.There is not going to be a catastrophe whereby suddenly everyone is going to live on the street and leave the houses empty.When everyone is afraid to buy, there can be…[Read more]