Hi Gman and others,
I am doing my first property trade at the moment as opposed to the strategy of buy hold rent sell on other properties that I have.
My question to those out there who might know.
IS Can I charge the company that I am sole director of , for a consulting, come administration Bill if you like for overseeing all the renovation…[Read more]

thanks again guys,

i appreciate you time and knowledge….

Thanks MJk

we will consider your opinion also.

regards Dot

Hi Westan,

Place comparable to Ballarat.

we are also considering another propery, which we have offered $134000 for. will get same amount of rent, But we feel that the other property will have better capital growth,because of the area, and its in much better condition, so thought we might pay the extra. What do you think?

Dot[]

Am I asking dumb questions????

Regards Dot.

thganks a lot guys….! []

Leigha,

The first question you have to ask yourself is how much income do you want.

If your answer is $120,000 before tax then you will need to generate the same through property.

Some quick basic calculations.

$120,000 = $2307 per week

If you buy some positive geared properties then lets say you make after costs $50 per week on each.

To…[Read more]

Serviced Apartments – My thoughts

When you sell anything you want to make your product available to everyone in the Market.

Serviced apartments usually have long term leases attached to them, sometimes up to 25 years. This gives peace of mind for your rental income and usually makes them fairly affordable to own. But – (there is always a but)…[Read more]

Willi,

I can see why you passed – you seem to know this stuff pretty well.

Petters

Maybe if you are really keen to get started now and not save the deposit which on a $300,000 property assuming you borrow 90% will be about $50,000 when you include costs you could borrow some equity off someone.

Parents are usually good with this and you have to make sure they are aware about how it works.

In a nut shell though if they have the…[Read more]

Cris,

I also would be careful of split loans – they can work very well but be careful of this.

The ATO, if they win their apeal will almost definetly make the tax ruling retrospective so if you have been claiming it you may be required to pay some money back.

If the ATO does not win the appeal, you would think that some legislation would be…[Read more]

Toe Edge,

As far as I am aware, assuming that you are saying that your two IP’s are cross colateralised, when you sell one the bank will require you to leave enough cash in a term deposit that they will then hold security over. When you buy another IP they will lokk at the equity in both again and if you have enough equity in the the existing IP…[Read more]

Sooshie,

I did’nt think too hard about the figures but I did throw in $150pm for costs, to come up with my $200 pm guestimate.

I hoped to show that Gordon’s situation overall could still remain positive even if he bought a property that was negative on it’s own.

I really think that the key for Gordon is to get advice. The one thing that I…[Read more]

Geez, his books for $30.00 each sounds like a good deal to me! I think I would be more motivated having the $7K to spend on a holiday to the Seyschelles.

AS a smart investor you should factor in at least 8 weeks vacancy in any calendar year. I do this in a capital city – so in a regional town you should at least factor in the two months. This should also drive your renos and loan structures etc.

Just a thought.

No Sooshie, anything that burns innocent citizens through no real fault of their own gets regulated. Lets get that straight. Maybe the money that is being made is at the expense of the ordinary “Joe”

Hi Quentin,

Thanks for being so thorough, this helps me a lot.

regards Dot []

Hi TrueBlue,

No, It’s not tax. I guess I was a bit quick to ask the first question, cause I could work this out by estimating:insurance, management fees, rates etc.

The real question is do I take these costs off the rental price BEFORE I allow for the 11 second solution or after?

Hope I don’t sound too dumb[]

Thanks Dot[]

Gordon,

The debt on your first IP will still be $85,000 when you buy your second IP. Interest on this one should be around $450 pm (assuming you are on a discounted variable rate)You cuurently get $800 pm rent so you are $350 up. You will of course have costs say 150pm so you should be $200 up still.

If you buy another property and use the equit…[Read more]

Andrew if you could get the same or better returns in another state and not have to pay as much stamp duty wouldn’t that be even better?

Chris