After another 12 months, they will both be the same price roughly, as they wll both be second-hand.This is why it's not always a good idea to buy brand new properties. Better to buy the one that is near new as it will be priced according to the market; not the developer's margins.If an identical house to yours, but less than 12 months old was sold…[Read more]

Option 3, part 2 for me.Unless the extension is going to radfically improve the rent return, or the value of the property noticably more than the cost of the extension, I wouldn't bother right now.Better to put the funds into another IP elsewhere and have 2 properties accumulating cap growth for you. Also, you may be able to find a good cashflow…[Read more]

This whole forum will be your mentor.There is a wealth of knowledge here, so just ask the questions and someone will give you an answer.No rewards required.

Nice ad.Administrators??

How about the depreciation?have you had a Depreciation Schedule prepared?This can knock lots of dollars off the neg cashflow.

Hopefully it will be a short-term tenant.

"Not sure I'm following you Russ. You and your wife are living of $600pw, right? And the only reason you're able to do this while your investments are costing you $300pw to $400pw (more? Much more?) is by taking out extra loans to pay the ongoing losses on your investments?"Russ, (and F)'I'd like to know how Russ can keep on taking out extra loans…[Read more]

In defense on the negative comments on the site, I think you'll find that a lot of them are from very experienced investors who have seen the busts as well as the booms, and are trying to protect everyone.People like Foundation are not trying to put us off property; he is trying to make sure we have our eyes open.From my perspective, and I…[Read more]

srobins wrote:
Guys, that 8-10%pa cap growth you are quoting is for desirable surburbs close to the city and to buy into a suburb like that at the moment you would need a million dollars. Plus that growth has only been relevant for the past 25 years or so – when the baby boomers started to buy investment properties. Once the boomers start to…[Read more]

Phil,welcome to this forum, I hope you enjoy it and learn as much as we all do. This argument comes up frequently, and many people are unaware of the other factors that make property investing such a good thing to do. It is more involved and can be more tedious than buying a share, and you don't need lots of money to buy them and that's why so…[Read more]

I think you should read as many different Authors as you can to get a well-rounded perspective on what is required.As you go, keep in mind that you will need to formulate a plan eventually, and a strategy to go with it.Are you going to be a flipper, a buy-n-holder, etc.Find an area that you would like to invest in, and study it really closely as…[Read more]

cu@thetop wrote:
Yes – this guy goes for bigger tenants but usually has them lined up before the first sod is turned.I agree the smaller commercial tenants are always the problem children.PS LA Aussie- like your work in the greedy tradies thread but I'm too scared to put my head up over there with all the vitriol flying around……..

I tell it…[Read more]

The silence is deafening

Lease back apartments are generally considered not that good an investment.There is virtually no ability to add value, the management company can be the make or break for these places insofar as they may not rent out your place, and if the rents aren't pooled, then you could have a lot of vacancies.They tend not to have a lot of cap gain.The…[Read more]

Anything that has the terms "mastery", or "empower" attached to it is a dead give away for a start.Thanks for the heads-up though.Have you sent this info on to Neil Jenman?http://www.jenman.com.au/He loves exposing these guys.

Your friend should first do some extensive research on the land values in the immediate area to get an idea of what the value of his/her block is.Call all the local agents, check the recent sales either with the agents or at the local Council. realestate.com.au lists a lot of recent sales, but not always the prices.This wouldn't be the first time…[Read more]

Well done, exciting times.1. don't forget to arrange for a Depreciation Schedule to be done before the tenants move in, or hopefully you can get a full list of costings from the builder. This will help with the tax returns and cashflow.2. don't forget to arrange Landlord's Insurance (as well as Building and Public Liability) before the tenants…[Read more]

wait until the xmas spending starts.I'm tipping another rate rise early next year because of it.

cu@thetop wrote:
Saw a deal fall over last month for a purchase of a property in a SE QLD coastal town. The buyer wanted to buy (850k) and develop (1.6mill) a commercial property – had the tenant lined up and all, but figures came back at 13% and he normally goes for 17% return.Deal finished now looking at another. With a good tenant and lawyer…[Read more]

Sounds great; well done.My only concern is the demand for the furnished option after the projects finish.Where is it?