I think I know the city you’re talking about[]. I agree that it’s got good growth prospects – the average price there is lower than the coastal town to the south and the coastal city to the north.

That yield % is OK (not great) for that city. But I’ve found that charges like rates are proportionately higher for something that rents…[Read more]

To me the ’11 second’ thing is just fancy jargon for a yield a bit over 10%. With this interest rates could rise a bit and you’d still be cashflow positive. Or you could…[Read more]

I haven’t done any active looking in Perth, but I’ve heard good things (yield-wise) about the Kwinana and Armadale/Gosnells areas.

I’ve also been told that Broome is fairly go-ahead at the moment, but don’t have the stats.

When I last looked you could get a place in Kellerberrin (and similar towns) for $40k. If you…[Read more]

I find I’m often racked by indecision, lethargy and think of reasons not to do things. I am also sometimes let opportunities slip by.

But when the evidence is overwhelming that the potential benefits far outweigh the risks, I can move quite quickly. The books/software mentioned above, along with my…[Read more]

How important is having your own home that you can do as you like and no inspections?

How focussed are you on your financial goals, or do you have lifestyle goals as well?

How long do you intend to live in the one place?

Are you in an area where prices are high and yields…[Read more]

‘Streets Ahead’ has lots of good stuff in it, but bear in mind that it is biased heavily towards capital growth rather than cashflow.

For example, it compares one growth property with one cashflow property, when it would have been fairer to compare it with 2 or 3 (due to the often lower purchase…[Read more]

A real ‘dog’s breakfast, I’m afraid. It was very hard to follow the threads and I didn’t get much out of them; my own reading, and forums like this and the Somersoft one have been far more educational.

A couple of points:

1. The US appears to be in a different stage of the economic cycle to Australia at the moment. This may affect comparative prices.

2. Wage averages in the…[Read more]

How can this be?

There is not just one property market in Australia, but several. The current property boom has affected mainly capital cities and some country areas. Other areas have had NO BOOM. I would expect the metro areas would bear the brunt of any ‘correction’ or levelling…[Read more]

Q. ‘surely a renter can see the difference between a $100k and $200k property for the same rent’

A. I would think they could too, though factors such as convenience, number of bedrooms, access to transport & parking would be more significant considerations than…[Read more]

Peter

However there are some areas where there are cashflow positive properties with high growth potential. Margaret River (WA) in the mid 1980s was an example, and has…[Read more]

I stepped into the renter’s shoes when selecting my IP. It is along a well-known CBD street, and is 10 min walk from the centre of town and closer than that to the supermarket and…[Read more]

Particularly if they also have a good portfolio of shares for some cap gain.

Some people measure their financial progress towards their goal by net wealth. ‘My wealth grew by $20 000 last year, so I did OK’. I did this when capital growth was my key…[Read more]

You should also be aware of what you want. Do you want to be a millionaire by age 45, or financially independent by then?…[Read more]

In relation to 1. unless I wanted to be in debt for a long time, pay heaps of interest to the bank, and not actually own very much, I would always take out a P&I loan when buying a property chosen for its cashflow. If you don’t you could end up owing as much on the property as it’s worth. Your only benefit will have been a source of…[Read more]

Peter

There are building inspectors who are builders, or those that are…[Read more]