There is no simple answer to your question, but here are some things to consider.

Not all IPs are negatively geared. And of those that start negatively geared, some become +ve more quickly than others. The main factors here are rent and how fast it is increasing, LVR (loan to valuation ratio) which can have a bigger influence than…[Read more]

I would be wary of these units for the following reasons.

The state of the common areas would indicate that little has been spent on their upkeep for some time. Ask for a copy of the Strata accounts and minutes of the AGMs. You are entitled to the most recent but try to get more than that. Unless there is a substantial…[Read more]

I think some banks still do valuations in house or with a tied valuer. Hence they can influence the definition of market value and hence can request they be conservative.

Not all banks and not all the time. But often enough to be a nuisance to borrowers.

Mum

A valuation is actually not a single number but a range based on recent sales of comparable homes and what the valuer believes the market has done since those sales. Actual sales figures are used, not what properties are listed at.

When the market is rising, values tend to come in at the top of the range. When the market is flat,…[Read more]

I would concur with Marc that the next step is to vist your bank or your broker and get an idea of what you would qualify for. This will not tie you into this bank or broker and you can talk to others later. However, all you need to know at this stage is the amount you could borrow so you can then work out what you can afford to buy.…[Read more]

Mum

You probably need to ask your accountant about building depreciation as I think there may be circumstances where ATO will deem you to have included it in your previous years’ deductions when they calculate your CGT even if you didn’t charge it at the time.

Mum

There are basically 2 limits to how much you can borrow – your serviceability and how much deposit you have.

Please note the following is not advice, just some play with numbers. You will need to have your broker verify the numbers as they depend very heavily on which state you are from (I have used NSW for these numbers) as to how…[Read more]

I should have also added that demolition depends on what is being demolished and whether asbestos is involved. Can be up to $10K on top of the rest. My builder includes it in his price rather than my having to arrange for it myself so when I budget $25K for subdivision, that doesn’t include demolition.

Mum

Celeste’s figures are about right for Adelaide also. I generally budget $25K for Torrens titling. Can come in a little less but can also come in more if the water and sewer connections are more than normal.

Mum

We have used an airless spray gun. Not sure how much it costs as we have had ours for many years. And, my handyman (who does most of my painting these days) also uses one.

It is the only thing to use for those highly textured ceilings so popular for units in the 50s and 60s in Adelaide.

Main things to watch is the edges and…[Read more]

You will also find there are a number of limitations imposed on the very high products. Most will only lend against properties in metropolitan regions excluding CBDs, high rise, most country towns, and certain types of properties.

The employment requirements are also higher as is also serviceability requirements.

And, many lenders…[Read more]

It should be possible to get an answer in a couple of days though often it can take longer.

Did you let your broker know you had such a tight time frame? If he did know, then he should have passed on your urgency and 5 days is getting excessive. If he didn’t know, then he will have put it through the normal queue and that can take some…[Read more]

The year finishes when you sign the contract of sale, and not on the settlement date. Check with your accountant to be really sure of the rules.

Mum

You would be better talking to your tax accountant and getting proper advice.

I suspect that you would need to withdraw the funds clearly some time before moving out to make sure ATO does not consider you are redrawing funds for personal purposes from a loan used for investment purposes. There is some case law on this and, as I said, you…[Read more]

It will depend on the state you are in.

Generally, when purchasing you will need to pay Transfer Stamp Duty, and a Title Registration Fee. If you borrow money, you will pay to register the mortgage and you may also pay Mortgage Stamp Duty. For the amount of these, see the website of your state governments Lands Title Office and/or…[Read more]

1. Sounds like you are looking at duplex in Adelaide? Pros are they are generally cheaper for the same size of house and land. Cons are that people seem to prefer stand alone houses in most suburbs unless the attachment is only through the garage. Also, you more or less have to agree with neighbour on external appearance as one half…[Read more]

It would depend on the reno. A quick in and out might net only $10-20K (after purchase and selling costs) and still be worth doing. But a complete makeover would need to promise a lot more than that as the risk of finding extra stuff that needs doing goes up exponentially.

Mum

You might want to post this question in the Value Added forum which is often visited by others doing developments.

Mum

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

Mum

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]

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

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]

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]

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]

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]

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

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]

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]

If the auction has already…[Read more]

Mum

Sorry.

Margaret

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]

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]

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

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]

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

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

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]

We regularly get rats dying under the floor. And occasionally possums dying the same. They get into the roof, then walk down the cavity, drop off into the under floor space, then can’t get up again. And we can’t get down there either.

The smell from dead rats becomes bearable in about 2 weeks and disappears in another 2 weeks. For…[Read more]

Have you investigated the ones sold on this site? Go to Online Shop and browse. Then ask on the forum re the different programs and how useful they are. I don’t yet have any of them so I can’t help you there. I only know they come recommended by many others.

Margaret

How good are you at spreadsheets?

It is not too hard to write a spreadsheet for yourself. It just takes time and effort which you may be better using looking for good properties. A few hundred dollars buying good software easily pays for itself if it means you can easily do what-ifs to your scenarios.

If you do decide to write it…[Read more]

Re your second question first, have you tried providing references from renting overseas, and/or references from your employment or other people of good community standing?

Re your first question, the ABS quotes average income, not median. In this instance, average is much higher than median as it is skewed by the very high incomes paid…[Read more]

You took my answer right out of my mouth.

Other suggestions for vines are passionfruit, jasmine (though don’t ever tell my husband I recommended this as I object to the smell), various natives especially hardenbergias, wisteria (though that is relatively slow growing and deciduous), climbing roses (some of which grow quite quickly although…[Read more]

Leaking pipes in bathroom walls may not show up on the bathroom side if the tiles have been applied properly or repaired recently. But can show up on the other side of the wall. Puffy rendering or plaster is where I saw it first. Like the early stages of salt damp on kitchen walls behind…[Read more]

There are quite a few of us from Adelaide but apart from Dr X we seem to be quieter than others from Q, WA, NSW and Melbourne. Keep posting and you will find us coming out of the woodwork.

You can also email those of us you find, including me.

I generally have fly screens and air cons already in so my tenants don’t have to ask for them. And, again generally, I don’t have problems with tenants over the fly screens.

Except for those tenants who have cats despite the no pets rule…[Read more]

2. Dave, you might check with your newspaper and/or Trading Post to see if there is a market for private sales of…[Read more]

It is going to depend on who built the crossover in the first place. If the developer and they are the ones who put the caveat on your land, then you have a case against them.

But if the council and they had no knowledge of the caveat, then I suspect you will have to foot the bill. Councils are a law unto themselves. We have had an…[Read more]