Also need to consider that when company eventually decides not to renew lease, then value goes back to ordinary unit. Has happened to a number of investors here in another complex (not Quest but had a better lease for investors).

Hi Carlin

I use Gemini Management. email me for details.

In the 10 years I have used them, have had problems with only 1 tenant and GM got everything I asked for when they went to tribunal.
[smiling]

I agree with Brahms also on this one.

And, if Interstar Non-Conforming have limited LVR to 75%, then there is more to this than has been disclosed since I believe INC lend higher LVRs to lodocs although at higher interest rates than 9-10%.

Mum

Hi Redwing

Thanks for the site. Got a good laugh.

I’m a miniature Bull Terrier. Considered ugly by some and gladiator by others. “Despite its fierce appearance and strength it makes a faithful and devoted pet.”

Oh well. Back to the drawing board.

Mum

Personally, I don’t have any prejudices against either. Although I notice I have generally bought at about 5-8 years old when the property needs a good paint job and general maintenance and the original owner is selling because they can’t be bothered with either.

My Q. When would you prefer to buy a unit instead of a house?

The normal strata fee covers the day to day stuff like administration, insurance, normal maintenance, etc. Most strata corporations also have a sinking fund for the big maintenance items like painting, roof, carpet for the common areas, etc. Funds accumulate in this fund until needed and are then spent after the owners vote on what needs to be…[Read more]

Thanks Jenny

The site is currently unavailable but will try again tomorrow.

Hi Dohicky

Personal mortgage proptection in case of illness, death, disablement and unable to pay type insurance.

The question arose from someone who had a really bad experience with CGU and wanted to know if there was an alternative.

The experiences I have read here just reinforces my decision not to have Landlords insurance. It is supposed to cover the disasters but doesn’t seem to do so. I have full building cover (including landlords fixtures and fittings) and keep that updated.

I have found it worth reducing my risk by employing a good PM. Have had only 1 claim against…[Read more]

I would agree with Michael.

Unless you love the property and want it for other reasons, it is too much hassle to ensure completely free of termites.

Once there, there is always the possibility they will come back. The nest can be 100m away from where you actually see the activity and hence almost impossible to be sure you have everything.

You…[Read more]

Hi Erwanjg

One strategy for saving faster is to have it taken from your pay before you receive the rest. It may take a few paydays to get comfortable again but you will soon learn to make do on less. This works best if your payroll office can divide your pay between multiple accounts – not all pay offices are willing to do this.

We are 2 car family. Husband drives 2001 Commodore white. Nice and comfortable and plenty of room for the tools, timber, etc. I drive 1990 Camry with no power steering. Deliberately so as no one else in the family ever wanted to drive it and I could always be sure of having a car when I wanted it. Now the children have left home, I don’t have…[Read more]

Hi Richard.

What is the difference between advice and information?

No, I do not have a “Proper Authority” to give advice but I didn’t think I was advising, only giving information gleaned from people who do this sort of thing.

Correct me if I am wrong.

Hi Mossie

Another strategy might be to use any extra equity you may have in the properties to invest in low risk high return (or at least higher than the interest you are currently are paying) investment(s). That should reduce the amount you are outlaying each month, at least.

***Edited***

Securitisation happens when a wholesale lender packages a number of loans together and sells them to investors. There is a lot of money out there doing this including superannuation funds and some of the small banks.

All securitised loans will require mortgage insurance. Some of the banks also ask for it even if they don’t securitise their…[Read more]

Some tenants cope with small problems and some don’t. I have found it worthwhile to get in before they become complaints if I can.

I usually do a wholesale change to washers between tenants. That way I rarely get the leaking tap complaints. If tenants are there longer than 12-18 months, then when we may get a call re leaking taps or the PM…[Read more]

Steven

Thanks for the article. It reiterates what I said – keep the investment and personal parts of the loan clear (either separated or good records – the former is preferable) and redraw loans are fine. Keeping the parts separate makes it easy at tax time for you and for ATO to understand what you are doing.

Margaret Wilson
margaretw@powerloan.com.au

Hi Ed

Further to my earlier post, some redraw loans can be structured to clearly delineate between the personal part and the investment part. As long as you keep the personal for personal and the investment for investment, then the ATO is satisfied. There are some schemes that ATO no longer allow but structured properly you can redraw for…[Read more]

If you have a redraw loan (rather than an off-set account) you can always dump all your spare cash into the loan and redraw it later whan you need it.

I agree with the others here. Shop around for finance options before applying for finance. Just like youwould shop around for properties before putting your first offer in. Investigate but don’t…[Read more]

Derek has covered most of the reasons I wouldn’t consider it.

Before you go further, you should check if finance is possible and at what rate and LVR. Most places would start at about 40 sqm for a residential loan. Many won’t touch anything as small as 21 sqm on a residential loan.

Margaret Wilson
margaretw@powerloan.com.au