Anyone who is willing to take the plunge and start investing and taking control of their future is doing the right thing.
However, you want to make sure you are maximising your investment returns wherever you can and minimise risk at all times.
I don’t know the area you are considering, and as I read there are several questions/concerns popping…[Read more]

This is one of those situations where the fear of the unknown comes into play and cripples action.
Councils aren’t there to inhibit or prohibit you; they are there to help you do it right, and within the law.
Most of the time if you approach them with as much info about your project as possible, and the right attitude, you will be surprised how…[Read more]

Rental yields are normally quoted on r/e sites as a percentage of the purchase price as advertised.
eg; Property is asking $200k. rent is $200 per week ($10,400 per year). This is a 5.2% yield. (yearly rent, divided by purchase price, multiply by 100).

But, if you do a calculation including the purchase costs (usually 5-6% of purchase price) then…[Read more]

A basic guide I use to work out the cashflow on a property is to allow for 20% of the rent to be eaten up each year in costs. This is an average, and some properties in some years will be way below or slightly above this figure.
Overall, my properties are below this figure.

The costs I include are;
1. management fees
2. 4 weeks vacancy
3. rates,…[Read more]

You do need to pull the trigger and it is scary the first time, but you can take steps to protect yourself.

+cashflow properties are harder to find since the recent boom. The rents haven’t caught up to the cap growth in many areas. But there are still some around; the problem is that in the present climate a lot of these will be ‘add value’ deals…[Read more]

My concern with any of these types of sites is what the rent demand is like in the area they have a property for sale. I couldn’t find any stats on the abovementioned site regarding rental demand. They mention rental income as a criteria for a good investment, but that’s it. I suppose I can do some reswearch on the area to find this out, but if…[Read more]

I am from Melb.
Generally, it has just about hit the bottom of the cycle, interest rates have beeen moving up, so now is a good time to buy for c.g, as there aren’t a lot of buyers out there, and the rental demand is tight, so the rents are moving up.

Generally, the rent return for Melb is going to be about 4-5%. Yuk.
Of course, if you can buy…[Read more]

Capital gains are great, but it’s no use if the neg cashflow is crippling you and your lifestyle is non existent. That’s why a lot of people start off investing then stop or get out after one property.

You have 2 neg geared properties already – that is better than most of the planet. If they are enjoying some cap growth, then it may be time to…[Read more]

There are calculators on numerous websites such as realestate.com.au, and some of the banks that will allow you to play around with the figures and see how it affects your loan repayments etc. Even google search “loan calculators”.
As for paying down debt on an I.P, there are different schools of thought;
1. never pay down the Investment debt as…[Read more]

I think what B.B means is that you will find that experienced investors won’t buy house and land packages.
Average people, first home buyers who are owner occupiers usually buy them.
Sometimes an experienced investor will buy a package, but it is usually at a good discount and they know the likely cap growth for the area will be good. the tax…[Read more]

It is not a competition. It is not a race, or “how many properties have you got?”
Everyone has their own goals and preferences. Find yours, have fun, and above all – make money!!

Cheers,
Marc.
erardent@hotmail.com

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

I enquired at the local council about a vacant block near us a few years ago (I wanted to offer to buy like you).
The council said they couldn’t give out the owner’s details, but would contact the owner on my behalf.
They did so, and the owner contacted me by phone a few weeks later.
If you get no response from the letter on the bin (or door) you…[Read more]

A few assumptions there;
1. the vendor will accept lower than $120k (the price range is $120-130k, which indirectly says they probably won’t go below $120k). No harm in asking of course.
2. the purchaser will put in 30% cash deposit. Many investors (like me) use equity from other properties as deposits, thus the deal would be 100% financed with a…[Read more]

Absolutely. I know of 2 guys who both bought identical apartments in the same building, then moved into each other’s apartments and rented from each other and were able to claim all the expenses etc. Good one!

By the way; there is absolutely no where in Aus that is like L.A (thank god).

Cheers,
Marc.
erardent@hotmail.com

“we get sent lemons;…[Read more]

If the ants are bull ants or jumping jacks, tell the P.M to tell the tenants to go to Hardware House or Mitre 10 and buy a tube of ANTEX and sprinkle this around the nest. Job done. Costs about $5.00.

It may or may not be your responsibility, but COME ON, it’s only ants.
They sound like the ‘victim mentality’ tenants to me, who can’t make a…[Read more]

Most people who come into a large sum of money (or inheritance) end up spending the lot on ‘doodads’ and wind up back where they started (or worse). If you sell it, what are YOU going to do with the cash?
My 2c worth –
Unless you are desperate for the cash, or need the place as your PPoR, then I suggest do a reno and rent it out If you have access…[Read more]

I’ve got 101 – it’s great, but hard to find anyone willing to play it. Tells you something about 90% of society, doesn’t it?
There is a kids game as well, I haven’t seen it, but if your kids are old enough to use a computer and a cell phone, they are old enough to use 101 I reckon.
Me and a mate went halves in the game. Maybe you can do that with…[Read more]

Personally, I don’t like the figures on any of those – not enough rent return for me (no.1 is just o.k), but if you are buying for cap growth and don’t mind the neg cashflow then so be it.

The other factors worth looking at for those 3 properties are:
1. which area has the best potential for cap growth.
2. which property has the best proximity…[Read more]

Yo! wattup bruvva?
I tink da word ‘the’ is spelt – T.H.E.
know wud um sain?
[grrr]

Cheers,
Marc.
erardent@hotmail.com

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

Originally posted by d_robb21:
dare_to_dream, a 6% yield is not a bad return, of course depending on where the property is, growth prospects. I assume that your calculations are not including growth prospects, tax breaks, etc, with that factored in, this property may pose a great opportunity to some investors.

That being said, its not my cup of…[Read more]