Is the building insurance part of the $20k?  Even if it is, it is still wayyyyyy to much money.

I have not bothered to do much research into apartment buildings because I am soooo not into body corporates.  No matter what, these fees sound out of control ridiculous.May I be so rude as to ask what the asking price is for the apartment you are looking at?  If it's worth 2mill, then $4k a year probably doesn't matter.  But I'm guessing it is…[Read more]

Perhaps the caretaker is growing marijuana somewhere in the building.  Might explain the ridiculous electricity costs…

Here is what I think:In a standalone house, here are some example annual costs:$500 insurance (building + contents)$900 council rates$20 exterior sensor light$1000 for a gardener if you cannot be bothered to mow your own lawnsTotal = $2420.And that would be for a whole house.Yes, $4096 seems extravagant to me and the precise reason I refuse to buy…[Read more]

What does the $30k quote cover??

How much extra income do you require per year? 

I wonder if your landlady is aware of depreciation schedules (ie once some improvements are done, she can have a quantity surveyor write up a deprectiation schedule so she can enjoy some tax breaks).  Might be worth mentioning it to her… it could be the decider.

joeandchels wrote:
There is no secret that property prices are at a all time high, in my opinion we will probably see a crash in prices in the following years as did other countries have following a "bubble".

Doom! Gloom! Doom! Gloom!Seriously, not sure why this concept keeps coming up.  Property is a supply and demand thing.  Demand c…[Read more]

Following on from the comments from morpheusbushy, who points out a very valid point, I might add…..Let's pretend you stay in Canada earning your pittence, and somehow buy a cashflow postive property.  Because you are currently not an Australian resident for tax purposes anyhow, you'll be taxed at 30c in every dollar that you make.  On the o…[Read more]

You definitely need to do  your homework with council.  Call the Wyndham City Council and ask to speak to someone in the planning department.  Don't call first thing in the morning, last thing of the day or around lunchtime.  You're unlikely to get the most helpful service from someone if you caught them when they were about to eat lunch.  Be frie…[Read more]

this is definitely not a point  you want to stumble on. it could become a mistake that costs you a hell of a lot of money.  you want to know with absolute certainty.

Step 1: Find out the zoning of the land and whether you could build any more dwellings on it or subdivide it at all.  If it still has a rural zoning, you might find you can't.  Thus you'd perhaps not bother buying it unless you're prepared to sit on the land and wait for a rezoning, or try and ask council to rezone it.

Hi AmyYou might consider having Richard help you instead of your accountant and planner.  Richard does this sort of thing every day and is a property investor himself.  Jac

The indefinite rent free period would come to an end if the elderly aunt were to pass away, or if your mum and elderly aunt found that they living together thing wasn't working as well as they thought it would (aka a falling out).  I'd be cautious about making such big decisions based on the assumption that I could get free rent forever.

Yes indeed, you don't want it to be an epic to visit friends and family, so it makes sense to buy within reasonable distance of them.  Buying somewhere near a train station and a major freeway that goes to Melbourne is also important.  Better still if you find out about some freeway or train station that is yet to be built, and you can buy into t…[Read more]

Great work on the savings!  And the First Home Owner Grant will add a bit to that too.Try and stick to a freestanding house or townhouse.  Failing that, go with a villa unit.  Try and avoid apartments if you can, since it's the land that has the value.Where in Melbourne are you looking?  And second to that, what sort of work do you do, and in wha…[Read more]

anyone?

unhappydays – I agree with maree.  What about instead thinking "how fortunate you are that there are people (ie landlords) prepared to take on mortgages in order to make rental accommodation available for those that do not have the means or desire to purchase their own homes?"  Have you considered that your landlord might be in financial di…[Read more]

Your superfund is not allowed to buy property from you.  It needs to be an arms length sale (ie not purchased from you or an immediate family member).

"A lot of apts have been built up in the recent few years"…..You'd have to wonder whether this will create an oversupply problem.  That is, your inability to get tenants, or resell quickly for a fair price, if you are competing with heaps of other similar apartments…