Check out what service is (supposed to be) provided before you sign up. And also ask how many they have on their rent roll. A good PM is worth paying for if it means less and shorter vacancies, higher rent, happier tenants, and no problems when tenants move out.

Also good to find one recommended by someone independent of the PM or the agency.

Mum

Hi Matt

Check if the council has a heritage tree issue. Go to their website and check under development for their rules.

If no issue with council, then you should have no trouble removing it.

If council consideres it a heritage tree, then check if they will let you remove it since it seems to be affecting the foundations and what you need to…[Read more]

Matt

Where are you?

Building costs vary considerably from state to state and from town to town. At least one of the insurance companies has a calculator on their site which should help you out. Calculates replacement so it includes clearing the site and I suspect doesn’t include fences but does include landscaping.

Mum

Hi Monty

Sounds like that agent had few people interested and was looking for any sort of lead. Did you remind them that you had asked questions which hadn’t been answered?

I always ask questions when I view a property, especially if I am even remotely interested in it. It tells me if the REA has done their homework, if they have put the…[Read more]

As I see it (being a boomer myself), their will be some shift in demographics but this will not be a major upset as the changes will slowly occur.

Boomers selling larger houses which will be bought by Gen Xers and Gen Yers who want to upsize. Or even start in the sort of house their parents finished in. Already happening.

Sea change means that…[Read more]

Hi folks,

As I understand it, a dutch auction as proposed is sort of illegal in South Australia. You can discuss what might be accepted but can’t get the details of what else is offered. There is a fine distinction between the two. The vendor can accept or offer to negotiate with one or more parties but the REA can only present the offers.

As…[Read more]

Hi Units4Me

I didn’t say I was only looking at it as a reno. My first preference would be development but the block was just under the size council would readily approve a subdivision and reno was to be my backup if council (as it often does) changed its mind and didn’t approve despite the verbal OK.

I am friendly with a few other investors who…[Read more]

Update:

Went to auction this morning. Bidding started only $20K below what my numbers say is profitable and went up from there. Slugging match between 2 bidders only. The rest of us just left them to it.

Mum

Thanks folks for the help.

PeeJ, the property is double brick and dated.

There has been quite a lot of interest in the property as a development site as it just fits the local council rules and development sites in this suburb are rare. Demolish and rebuild is my fall back position but I wanted to know what problems there may be for reno as…[Read more]

Hi Lyndon.

Suggest you research Steve’s resource of Wealth Guardian (go to the on-line shop and navigate from there). For a novice in asset protection, it is money well spent.

You may find people are reluctant to give you specific answers as it could be construed as financial advice. Read up on trusts as well as companies for the protection…[Read more]

LifeX and GrossRealisation, deposit bonds are getting to be common for auctions. Especially for people who are organising for the deposit from the equity in other property and the second loan may not be completely set up in time for the auction. We do quite a few deposit bonds for people in these circumstances.

If the auction has already…[Read more]

I’m not quite sure of the dates but the size of the numbers is correct. You might want to get a coy of the May 2006 edition of Australian Property Investing as there is an article in it regarding building depreciation, what you can allow for tax purposes and the pitfalls.

Mum

We can provide deposit bonds for our clients but do not have the facility to do this where the finance approval was obtained elsewhere.

Sorry.

Margaret

A good thread.

We have a partial succession plan in place. And we are teaching our kids all we know so they don’t make the same mistakes. One of them is planning on being debt free and with $100K investment portfolio by the time she is 30 and looks like making it.

We didn’t have mentors. Both sets of parents have no idea about money, really.…[Read more]

Replacing carpet should only cost $2-3,000. I have just recarpeted 2 townhouses with good hard-wearing carpet (stairs are involved and cheap carpet deteriorates quickly) for less than $5,000.

Check with your accountant as to whether it can be expensed since the replacement is obviously due to wear and tear or whether it has to be depreciated.…[Read more]

Also, this is not the first REIT. It may be the first listed residential property trust but REITs have been around for a while. There are several unlisted residential property trusts and many listed commercial REITs and mixed REITs. I regularly get sent information on unlisted ones.

If anyone is contemplating investing in a listed REIT, a good…[Read more]

Hi Righton

Average (and I stress average) gross yield on residential property is around 4½-5% for both houses and units.

What is a good area depends on what you are looking for. Every area is good to someone. I know of people who will only invest in suburbs I wouldn’t touch with the proverbial barge pole.

I tend to invest in areas where r…[Read more]

It depends on the state.

In SA, you can transfer PPOR from 1 spouse to another (i.e. 2 becomes 1) without SD. But there will be fees for lodging and altering the title. At least you could 12 months ago and I don’t think those rules have changed since.

Margaret

Hi Pursefattener

Having one wall of a room part of the outside wall of the house means you can put window in for ventilation and light. Without this, there has to be some other provision to get light and ventilation required by the building code.

That is what I meant. I hope this is clearer.

Margaret

Hi Shaun

The yields are good to cover tenant risk. My PM won’t go north of Salisbury as they have too much difficulty getting good tenants. And it is not just tenants but neighbours. There are some pockets with good prospects (I have a number of clients in the area so I get to see inside some of the better houses) but you have to hunt and I…[Read more]