the fee varies from valuer to valuer, bank to bank. But expect to pay around $300 give or take a few.

One thing, if you are getting the valuation done on your own behalf, make sure you arrange to meet the valuer at your property and come armed with as much recent sales histories from similar near-by properties to support your (hopeful)…[Read more]

I suggest you get your feet wet in your own backyard first. OS investing is fraught with stumbling blocks and dangers , even if you have experience.

There are plenty of markets and opportunities here in Aus. The grass is not always greener.

Cheers,
Marc.
erardent@hotmail.com

“we get sent lemons; it’s up to us to make lemonade”

Originally posted by fingerscrossed:
sorry Mark

I was a little vauge.

There “is” a sound barrier at the back of the property.

The yield of 5% is the going rate, according to real estate.com.au and other agents that i have spoken to, for the area and the quailty and location of the house.

The block can be sub divided.

The vendor was happy to…[Read more]

Originally posted by Terryw:
They generally earn a lot and buy cheap properties, thats how.

There are ways to extend your borrowing capacity, but you have to plan from the beginning. You will also need deposits or high growth, or a combination.

Terryw
Discover Home Loans
Terry@discoverhomeloans.com.au
Send an email to get my newsletter.

Also,…[Read more]

If alarm bells are ringing then walk away. You need to be comfortable and sure.

You said ‘apparently’ there is a sound barrier, and ‘I could expect to achieve a 5% return’.

Is this property in an area where you can’t inspect it?

These statements are vague; you need to find out definitely that you can achieve the rent you expect and if there is…[Read more]

Hi James,

In1989 the interest rates were approaching 17% across Aus. People were selling homes worth $1 mill for $500k. It was bad if you were a property investor (or high-end home owner). The market was bad with no sign of recovery in the near future.

Then we had a boom in the late 90’s through to 2003. Houses doubled in price in 3-5 years. The…[Read more]

Hi Ritchie,
first; my disclaimer (isn’t the whole world based on these now??) I am so sick of hearing these now – they are on almost every ad on tv and radio over here. [grrr]

I am not an accountant, so don’t quote me to the lawyer when I get sued (just joking!) I’ll attempt to answer those questions for you:-

1. That’s correct; the A.T.O (or…[Read more]

Totally agree dvane,

also, teaching the difference between an asset and a liability to the kids I think is very important. You still need to have some of both unfortunately, but at least they should know the difference and make informed decisions.

Many kids; I’m talking from high school to early 20’s (and a lot of sensible adults) don’t know the…[Read more]

This is the standard ‘try on’ by the agent. There is no law (that I know of) saying you must pay 10% deposit. I and many other forumites pay $1,000 as a deposit all the time. The Vendor doesn’t care usually – only the agent.

The agents don’t like this, especially if the settlement is a long one, as they can’t apply to have the deposit released…[Read more]

Originally posted by wealth4life.com:
Thank you so much L.A what an interesting responce …

As to following the USA i think we are already there … What about Kiyosakais teachings or isn’t he that big over there as we imagine he is ?

Lets put a prediction on when Australia will hit $50bn credit debt.

There are some great bargins here, even…[Read more]

Hi W.4.L.com,

Totally agree with your post. Here in the U.S I have observed Aus 10 or 15 years down the road in my opinion (maybe less).

The norm over here is for people to rent, buy the most expensive car they can afford, live on take-out and restaurant food and shop all weekend at the malls buying clothes and electronic devices. “Keeping up…[Read more]

Loved your enthusiasm and positive attitude Lea. Glad you have done well in your investing.

Must take you to task about the property in Victoria though. I’m tipping the other properties in the other states are in the same bracket as the Vic property too.

My brother lives 10 mins away from Ararat in Great Western. He and his wife work in Ararat.…[Read more]

Don’t confuse POSITIVE CASHFLOW with POSITIVE GEARING. It sounds from your post like you are looking for pos GEARING?

These are two totally different things. I have posted on this before, but will attempt to explain again.

POSITIVE GEARING is when the rent covers the TOTAL COSTS BEFORE TAX of holding the property. There is a profit, so the…[Read more]

Be very careful.
6% is not a good return for a start (to me). You can get nearly that in an I.N.G account with no risk.
Hard to get finance if the apartment is not over 50 sq/m.
High manangement/holding costs.

Read Margaret Lomas’ books and see sections on Serviced Apartments.

Cheers,
Marc.
erardent@hotmail.com

“we get sent lemons; it’s up to…[Read more]

How old id the building on the property?

If the building on the property was constructed after 1987, you can claim depreciation against your income tax on every part of it. Even if it was built pre ’87, there still may be some depreciable items there for tax purposes. Ring a qualified Quantity Surveyor to discuss your options.

Every aspect of…[Read more]

You can do a lot of the renos yourself, or farm out the work to other contractors.

Getting the contractors will cost more than what you can do them for most likely, which will eat into your investment returns.

If you are a high income earner and have no time available, then this may be your only option to have the work carried out. It may be…[Read more]

Here’s a few more (I like reading prop investment books):-
1. Robert Kiyosaki – all books; they’re all great in different ways.
2. Think and Grow Rich – Napoleon Hill.
2. Richest Man in Babylon.
3. Millionaire next Door – Stanley and Danko.
4. Michael Yardney – all books.
5. Margaret Lomas – all books.
6. Jan Somers – all books.
7. Money Secrets…[Read more]

If you can ride out the neg cashflow for a couple more years then do that. The market and the rents will come up.

Treat the $8k as forced saving that you probably would have blown on other ‘doodads’. You haven’t made a loss until you sell.

Cheers,
Marc.
erardent@hotmail.com

“we get sent lemons; it’s up to us to make lemonade”

Originally posted by splosh:
Originally posted by foundation:
Originally posted by splosh:
You could simply…

[stun]

Simply? Wayne’s a lucky bloke if he has a lazy $225,000 sitting around that he can plonk into his loan!

Yes, tounge was planted somewhat firmly in cheek, ….but seriously he could possibly sell another IP and…[Read more]

Everyone seems to have this idea to sell their very successful I.P’s.

After you pay all the costs and CGT you lose a fair chunk, and it is not necessary to do this as you can use the equity you have built up.

Sell the duds and keep the winners.

Don’t sell, but refinance your existing loans to set up the correct structure for further investing…[Read more]