hornbill wrote:
I wonder if there is buyers agent out there that can offer negotiation service only.

I suspect you'll be getting plenty of PMs!

reeeen wrote:
I have done some more reading and have another question I'm hoping someone can help me with… sorry Positive or negative gearing…I know that each situation would be different for each person but can you do both, for example buy a positively geared house and use the extra income to buy something that is negatively geared so that…[Read more]

Also, the location on the PM's office can play a big part. One that has decent street frontage and is in a busy pedestrian area will do better than one that's a bit out of the way.

Haha, I'm going to cut out an arch in a wall and remove a fireplace. Wish me luck!

I would question how many properties each currently manage and how many are currently vacant. This will help you gauge how effective their marketing is and whether the differences between the two forms of advertising matter a great deal.

Hi jcarYep, you have to pay land tax and rates on your IP. It's a special little ACT thing On the flipside, you can claim your stamp duty within the first year of purchasing the IP. So that property you purchased in December 2010, you can claim all the stamp duty in your 2010/11 tax return (again, this is special to the ACT).CheersJamie

I forgot to add. It wouldn't apply to a PPOR because you wouldn't have to pay CGT on it.

hornbill wrote:
My understanding is that if you use buyer's agent to purchase an IP, their fees are tax deductible? But not if you were to purchase a PPOR because it's not tax deductible – is this correct?

Hi JohnMy understanding is that buyers agents fees aren't immediately tax deductible. It forms part of the cost base – so is claimable when…[Read more]

The amount of time can depend on the lender. Give them a buzz, explain that you've added significant value, and see what they say.

Dolf De Roos has a basic book on easy reno's that add value. I can't remember the name of it though. Bunnings has some nifty DIY factsheets that seem to come in handy for renos. Youtube can be good as well – I learnt how to tile watching a few youtube clips!

House Call wrote:
started 2010 with no interest in property, other than owning PPOR and my business building.  Broke toe in January 2010 and could do nothing but read.  Ended up reading money magazine and finally understood the power of equity.  Devoured every property book and mag I could get my hands on then me and the Mrs bought 2 in…[Read more]

Hi AlisterSorry to hear about your situation.Selling the home yourself will reduce costs – however, it can also be quite stressful (which is something you obviously don't need right now). It might be best to speak with some real estate agents in your area – get a feel for how much the property is worth, what their fees are and also explain to t…[Read more]

Hi JaydeeIt's calculated by taking the rent you receive per annum and dividing it by the purchase price of the property. It's a measure of the percentage of income return you receive from the asset.CheersJamie

Rory Breaker wrote:
Hi Losty,An option is to pay down the PPOR as soon as possible then redraw with a LOC to be used as a deposit for an IP.  It will take time however.   

Another way to acheive the same outcome would be to convert this loan to interest only with an offset attached – place any extra repayments into your offset account. You can…[Read more]

Unfortunately for Losty he's current PPOR is already sitting at an LVR of 90% so tapping into equity isn't an option at the moment.

Terryw wrote:
You also have to be discipline to use IO/Offset – many people just start spending money if it is available.

Completely agree and that's the message I always try to get accross. If you haven't got the discipline to make regular repayments into the offset then an IO with offset might not be the best option.

oneworld wrote:
Not sure if I can rely on those figures in API magazine etc.

Tell me about it! I was comparing YIP and API quarterly growth figures for the same suburb – one said an increase of 17%! The other said the growth was going backwards! 

Hi ScottWhat would be the average rent around that area?

Aim for the win-win. As somone mentioned above, the savings involved by not using a realestate agent may be attractive. Are you planning on keeping this as an IP? If so (and you're not planning on knocking it down) you could, as touched on above, rent it back to her. To give comfort you could offer a long lease.

I wouldn't be comfortable with that sort of purchase. I like to spread the risk a bit – I'd take that cash and buy multiple properties at a lower price.