If you don't have a copy of your management contract/agreement, then ask the agent to provide with you with one. On it should be the the time frame for ending the contract, and you will need to do it in writing when you do it. The standard arrangement is for 3 months.If you never saw one, and didn't sign one then there is no contract and you can…[Read more]

I agree with Phil,if the difference between the repayments is so small, and you can easily handle the repayments, then go for the P&I loan; preferably with a good redraw or offset facility attached.You can still claim the interest on your tax return, but you are paying down the debt and accelerating your equity for future investing.The main factor…[Read more]

Yep;when tenants sign the lease they should do so knowing all the existing conditions of the house – if it has or has not things like aircon, phone, gas or elec cooking etc.They cannot then turn around and ask for something that they want , which was not originally supplied, and expect it to be provided at no cost.The landlord can offer to provide…[Read more]

Sounds as though your F.A is like so many others (unfortunately) – well versed in shares as a wealth creation vehicle, but not in property. Many of them make money out of you from their trailing commissions on the shares or Managed Funds, but not out of property advice, so, guess what? no property advice.

That's a good one; "too much property for your age".I wonder whether they say that to "The Donald"?

On the contrary; I believe that a good business practice for any business/investment is to pay down debt where possible and increase equity, and to re-invest the profits where possible as well.Sounds like you've got a couple of nice concessions there as well CJ; good work!

I had a discussion with a friend of mine a couple of years ago about investing in property. He is financially secure, earns good money, low debt etc. This was when the rent returns were a little better in Melb than they are now.He was scared to pull the trigger. After a few minutes of explaining all the benefits of property he still wasn't…[Read more]

The good thing about the Residex reports is they can alert you to possible growth areas that are coming up, and they show you what areas have been doing lately. They are good guidelines to use.You still need to go out do some research to establish how good the areas are or will be. It could be worth it if it saves you time by narrowing down your…[Read more]

It is true that at the moment the affordability for houses/units is very low. But it is not going to get better anytime soon, so you need to disregard the ratios; especially if you are a long-term investor.The market works in cycles, and low affordability means lots of upward pressure on rents, and fewer buyers. This sounds to me like a good time…[Read more]

To me, these figures don't work as I don't buy neg geared property. It has to be pos cashflowed and with good prospects for cap growth.Can you hold a neg geared property easily?Are there high prospects for cap growth to offset the neg gearing?Is there a high rent demand in the area to minimise the vacancies; especially since you are taking such a…[Read more]

Nothing new under the sun I'm afraid. Good heads up Courage.Don't let this nightmare put you off. Unfortunately it's pretty normal.Use it as a learning experience. You can pick up good bargains at auctions so get back on the horse.A lot of people are intimidated by auctions and don't realise you can make changers to the terms etc.

To relieve you of any cap gains tax liability you should move in first and live there for awhile (I think 6 months), then you can move out and make it an I.P. You can rent it for up to 6 years without becoming liable for CGT.If you rent it out straight away I don't think you can enjoy the CGT exempt status – talk to your accountant for a…[Read more]

I agree with Blogs on over reaching financially; especially where families are involved. Finding a CFP property is harder at the moment as well.There are several "non-traditional" loan products around now that lenders and M.B's will get you into without too much of a problem.Many are designed for people with no or little financials, or people who…[Read more]

It is well documented that you will be better off to keep renting rather than live in a PPoR, as long as you invest the difference between the rent and a likely mortgage payment, but many renters never invest the difference. Most people have an issue with renting while they have a perfectly good PPoR with tenants in it, so if you can get past…[Read more]

Good point there;

But why not do both things; word your own clauses and then run them past the solicitor. They will hopefully point out any changes needing to be made.

The reason I say this as many solicitors and accountants are not proactive – they do what you ask and no more. It is vital that you educate yourself as much as possible and try to…[Read more]

With a bank account you also don’t get any tax deductions (maybe on the fees) and you get taxed on your profits every year (cap gains tax).

With property, you can create a tax-free profit, and as long as you don’t sell, you can use the cap growth to further invest in more of same without ever paying cap gains tax.

There are ongoing problems with…[Read more]

Hi crystalleez,

firstly; “too” should be “to”.
With clauses, you want to be as detailed as possible, otherwise a smart lawyer in the event of a dispute will twist things.
For example; “subject to finance” could be;
“Subject to the purchaser obtaining written approval for finance from XYZ Bank in the amount of $XYZ, on or before XYZ date from the…[Read more]

Borrowing the full amount is not a prob, but you will have higher interest payments, probably mortgage insurance (a total waste of money; if you can avoid it do it).
These costs cut into your returns and your cashflow.
Use a cash deposit if you’ve got it.
It also protects you in the event of a downturn and you may need to sell.

It can be done online; ask the agent for photos. Tell them you want photos of inside and out. They may not want to do it, but if they are keen to make a sale they should. If not, you need to make a decision about taking the chance without the photos.
A good building inspector with a building inspection report can tell you a fair bit.
Buying online…[Read more]

The best thing to do is hire a Quantity Surveyor to prepare a DEPRECIATION SCHEDULE for you.They will itemise every item and more you didn't even think of. Worth every cent. This costs around $500, is tax deductible and will pay for itself in the next tax return. You then give the schedule to your accountant and they apply it to your tax return…[Read more]