Do your own research on prices of comparable existing properties on the open market before signing anything with any company like this.

Sounds like a classic two-tier marketing scam to me. Why is a CANBERRA buyer's agent flogging you an apartment in QUEENSLAND?There's no way in the world it would be cashflow positive.Assuming the absolute best case scenario of $1100 per week.The fees associated with these types of investments are often around 50% of the rent. So, the absolute best…[Read more]

Absolutely.Vendors often think their property is worth more than it is, and get annoyed if people offer low.But if you can provide proof that it is only worth $x. then they hopefully will be sensible and negotiate.

If it a 5 x 5 x 5 lease arrangement, it sounds like it could be a serviced apartment that is managed by a company who manages the whole complex ?If so; be very careful. A few things to consider:1. if it is under 50 sq/m in size, lenders are reluctant to provide finance, or they will lend you much less, meaning you will need a bigger deposit; maybe…[Read more]

No offence to Jon, but you'll never hear an agent say they aren't worth the money they are paid. Anyone with some marketing skills and training (not me) could do a better job than most agencies, and if the project is of the size you are describing, then it would be worth it to employ someone who is a professional; especially if you are considering…[Read more]

Well said G.O.C,But I think you're wasting your time;We haven't heard from Pete for a while now; I think he has folded up the tent.Good story about your Son though!One thing; if he has committed to this caper, then get in touch with a good property savvy Mortgage Broker (there are a few on this site) to check his Loan structure to make sure it is…[Read more]

You need to work out TO THE CENT what your budget for living expenses is per month.Every expense, spending money, pertol, insurances, curent loans, credit card balances; the lot.After you've worked out what you can live on after tax, then you will have a figure left over for the mortgage.Don't forget to include all the loans into that figure.In my…[Read more]

I would have thought that a project like yours would be an absolute rubbing the hands together deal for the agents; they get instant listing for 61 properties. How good is that?With that in mind, I would expect that they would be sharpening their commission pencil to get it.Name your own figure. Someone will accept for sure.Or, do the r/e stuff…[Read more]

If you want to do renos then you need to get rid of them, so as Terry says; buy with vacant possession, and with luck, you may be able to time your settlement for when the tenants have left (longer settlement).

F;I think you've been hangin' out over at GHPC too long.Great theories and graphs and academic guff, but at the end of the day, property has averaged between 7 and 10% growth per year for a very long time; world wars, depressions, recessions, bombings and  interest rate spikes nothwithstanding.And, as this is an AVERAGE, it therefore means that…[Read more]

I think what you are planning to do borders on tax evasion; illegal.As far as I know, you can't rent your IP to yourself and claim the deductions on it.Otherwise everyone would be declaring their PPoR an IP and pay "rent" back to themselves and get the deductions. I'm sure the ATO would close up that loophole quick smart.Also, you can't claim the…[Read more]

You pay CGT on the sale price of the IP, minus the purchase price.Any depreciation gets added back onto the gain, and then the tax is worked out at 50% of the gain, at your marginal rate of tax.So, you paid $255k, it's now worth $380k; you're up for tax on a gain of $125k, plus any depreciation; say it's $10k.You will pay tax on 50% of $135k at…[Read more]

You are not going to find a decent rent return in any cap city at the moment due to the recent booms. Elwood is a high demand area, and the cap growth is generally good, but you won't find anything underpirced there. What/where are you comparing the prices to?

As Lalibella says RRRRRUUUUUUUNNNNN!!!!!As Neil Jenman says: "DO NOT SIGN ANYTHING".You are about to buy your first IP, spend a half a million dollars and you don't have any knowldege of the area where the property is, the local rent returns, the values of the properties, the rental demand etc.On top of all that, you are going to be seriously out…[Read more]

Serviced apartments are something to look into VERY carefully.The thing that always sends up alalrm bells for me with an investment offered and marketed to the public, and with rent returns as well, makes me think; "who is paying for all the advertising and the rent return?". It sure isn't the developers. They're there to make money.No; it's YOU…[Read more]

Check out the entire list of outgoings for the building. It may surprise you.

Your place is worth $330k, and you owe $70k.In normal circumstances, Banks will allow you to use 80% of the value of your property ($264k).You still owe $70k so the USEABLE equity you have is $194k.If you buy the sister's property, the Banks will lend you 80% ($344k) and you can put in the rest plus purchase costs. This is usually around the 5% of…[Read more]

Why an apartment?Is it for an IP or a PPoR?Do LOTS of research on the current (and future) climate of apartments in inner-city. It all sounds sexy and exciting; that's how they are always marketed to the masses.In Melb in 2003, there was a massive over-supply of them, and many people paid too much, there were too many of them – mostly bought by…[Read more]

Renting will certainly be cheaper than buying at the moment.Vermont is a nice area; about 15 mins from Bayswater I guess.Also look at Ringwood (some parts are nice).If you go closer to the City, look at Blackburn and even Burwood and Vermont South (I used to live in all these places), or if you want to go closer to the hills, look at places like…[Read more]

The agent has committed fraud here.Don't report him to the REI as they are there to look after the agent's interests, so they will not do much.Consult your solicitor and look at taking legal action. If you don't have a solicitor, contact Terry Ryder: http://www.hotspotting.com.au/This will scare the agent as the fines for this sort of conduct can…[Read more]